Full text of H.16 Capital Market Developments : October 18, 1971
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I
.fl(s*j .• •
AFTER SIX MONTHS
October 18*1971
L.5.8 Con<id.nfti-ff!R )
CAPITAL
MARKET
DEVELOPMENTS
Z - 5 ~ * ^
°
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
3
TABLE 1: Yields, Volume and Reception
WEEK ENDING:
1971 - Sept.
Oct.
3
10
17
24
7.38
7.21
7.56
7.60
7.45
7.42
7.44
7.44
1
8
15
22
7.53
7.30
7.22
7.46
7.44 .
7.42 Z
W E E K ENDING:
1971 - Sept.
Oct.
YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa
YIELDS
BOND BUYER
MOODY'S
SEASONED 20
SEASONED
Aaa
BOND INDEX
CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OF WEEK
OFFERINGS
WITHIN 28 DAYS
413
,285
673
832
'
54
77
93
90
123
371
471
575e
82
77
74
MUNICIPAL BOND MARKET
VOLUME 2
GROSS
OFFERINGS
PER CENT
SOLD BY END
OF WEEK
BONDS SCHEDULED
WITHIN 28 DAYS
3
10
17
24
5.30
5.00
5.10
5.15
5.39
5.36
5.38
5.48
474
371
350
235
91
34
77
67
805
848
910
1,397
1
8
15
22
4.90
4,80
4.65 /
5.24
5.17
4.99
991
368
327
33 2e
73
75
68
955
833 '
1,180
'
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
j bonds guaranteed by the Federal Government.) : Millions of dollars unless otherwise indicated.
4
jg
Note:
Sec footnotes to Table 3
i
.
•
TABLE 2: Details on Inventories
1
DATE \
OFFERED
10/14
10/14
10/14
10/13
10/13
10/12
10/5
j
1
AMOUNT
(MIL.' $)
i
|
6 5/8
6 1/2
7 1/2
7 3/4
7 1/2
8.00
6 3/8
Ohio Pwr Co
Mfg. Hanover
Trail Mobile Fin
Union Tank
Gulf Pwr 1st
Pacific P&L
Ohio Bell Tel
40.0
100.0
25.0
25.0
21.0
35.0
50.0
DATE
OFFERED | RELEXSED
i
—
-
CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND
YIELD CALL PROTECTION
/ ISSUER
COUPON
6.55
6.50
7.41
7.75
7.50
8.00
6.38
A
5 yrs
NR
--
--
A
Aa
Baa
Aaa
, ESTIMATED PROPORTION SOLD
6 yrs
NC
5 yrs
5 yrs
6 yrs
CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND
ISSUER
AMOUNT
COUPON
IN YIELD CALL PROT.
YIELD
30%
25%
80%
98%
30%
98%
60%
ESTIMATED PRO-
NOME
INVENTORIES 1
MUNICIPALS
1971 - Sept.
17
24
647
630
1
759
872
8
IN SYNDICATE
112
111
308
242
CORPORATES
IN SYNDICATE
73
84
31
85
144
169
797
15
_L
N.C. - No call protection.
1
All figures in millions of dollars. Blue List is daily average for week ended Friday, except for latest week
which is daily average of three days ended Wednesday. All other figures are as of Friday.
TABLE 3: High Grade Bond Yields
NEW
CORPORATE
Aaa1
DATE
MOODY'S SEASONED
CORPORATE
Aaa 2
U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3
BOND
BUYER'S
SEASONED
MUNICIPALS 4
1969 - High
Low
8. 85 (12/5)
6. 90 (2/21)
7.84 (12/26)
6.55 (1/12)
6.97 (12/26)
5.96 (1/24)
6.90 (12/18)
4.82 (1/28)
1970 - High
Low
9. 3 0 (6/19)
7. 68 (12/18)
8.60 (7/3)
7.48 (12/31)
7.55 (5/29)
6.17 (12/18)
7.12 (5/29)
5.33 (12/11)
1971 - High
Low
8. 23 (5/12)
6,,76 (1/29)
7.71 (8/13)
7.06 (2/12)
6.51(6/18)
5.69 (3/23)
4.'99 f l 0 %
7.,56
7,.60
7.44
7.44
6.08
6.09
5.38
5.48
7,.53
7,.30
7 .22
7.46 .o
7.44
7.42
6.01
5.95
5.90
5.24
1971 - Sept.
Oct.
17
24
:
1
8
15
4*. 99
New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
2
Weekly average of daily figures. Average term of bonds included is
22-24 years.
3
Weekly average of daily figures.
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.
1
TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
CORPORATE
PERIOD
1971
January
February
March
3,115
3,000
6,075
April
May
June
4,007
3,271
4,375
4,064
2,850e
4,120e
July
^August
September
October
November
December
1st
2nd
3rd
4th
Quarter
Quarter
Quarter
Quarter
1st half
Three quarters
Year
1
2
1970
23,844
34,878e
STATE A N D LOCAL
1969
1971
2
196S
1970
2,075
2,045
2,098
1
2,705
I
1
1,839
2,144
1,340
1,214
1,555
1,262
987 •
538 >
I
I
3,389
2,748
2,076
2,530
1,907
2,135
2,008
1,647
996
1,085
1,801
1,110
737
2,768
2,274
2,518
2,478
1,427
2,427
j
1
1,928
1,871
1,700e
1,348
1,359
1,758
1,097
808
559
1,924
1,748
2,190
1,280
886
816
2,636
1,802
3,539
3,170
3,909
3,777
4,182
3,980
12,190
11,654
11,034®
1
"
1,933
2,375
2,532
8,560
11,939
6,218
7,354
6,332
6,840
6,688
6,050
5,499e
4,109
3,728
4,465
5,862
2,787
3,648
2,464
2,982
18,445
27,005
38,944
13,572
19,904
26,744
12,738
18,237e
7,837
12,302
18,164
6,435
8,89$
11,881
7,977
10,468
Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.
I
TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
TOTAL
87560
11,938
12,190
11,688
11,034
1
GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND
BONDS
ISSUES INCLUDED
PUBLICLY PRIVATELY PFD.
[
1
STOCK
FOREIGN
CONVERTIBLE
PLACED
OFFERED
L
912$— 1 , 6 5 9 "
287
83
" 5,937
737
1,421
2,690
7,827
226
1,516
8,369
2,306
724
84
1,758
3,384
6,546
215
1,351
1,787
4,516
4,731
772
GROSS PROCEEDS BY
TYPE OF ISSUER
COMMUNICATIONS
MFG.
PUBLIC
UTILITY
2,,314
3 =, 1 6 9
3 =, 7 9 4
3,, 1 3 0
1:, 8 3 9
2,, 7 1 4
3,,406
3 a, 1 9 7
2-, 9 1 0
2. , 5 5 6
868
1, , 3 4 6
11, 6 0 6
896
2 ,362
2 ,,663
4,,020
3 :, 5 9 4
4, , 7 5 3
4,,277
445
371
693
282
838
1. , 3 0 0
1 =, 0 3 3
1, , 6 8 7
ISSUERS'
3,518
3,777
4,181
3,979
2,425
2,390
3,001
2,436
389
304
283
834
704
1,083
898
709
4
56
11
159
121
388
184
165
994
1 ,006
1 =, 1 0 7
1 ,056
1 =, 2 4 1
1:, 1 0 1
1, , 3 5 0
955
3,115
3,000
6,075
2,033
594
275
647
489
524
1,293
43
3
38
99
168
557
716
661
2 ,417
676
1 ,069
1 ,452
391
683
532
1:, 3 3 2
587
1;, 6 7 5
4,042
3,271
4,375
4,064
2,850
4,120
2,116
507
491
760
537
500
750 .
1,419
633
1,332
2,196
950
1,370
116
47
52
64
n.a.
n.a.
384
255
712
197
300
275
1 ,135
588
1 ,206
529
485
825
1 ,267
588
1 ,055
721
800
1 ,035
273
405
218
1 ,622
350
390
1 ,367
1 ,489
1 ,897
1 ,192
1 ,215
1 ,870
2,201
4,135
2,148
2,282.
1,331
1,400
2,000
Other issuers are extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are avail1
able.
.
TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
Oct. 1 thru Oct. 15
\
ISSUER
TYPE 2
AMOUNT
(MILLIONS
OF
DOLLARS)
MATURITY
COUPON
RATE OR
NET.INTEREST COST
OFFERING
YIELD
MOODY'S
RATING
Corporates
Ramada I n n
G e n * 1 Tel
Co of the S.W.
Phila Elec Co
Ohio Bell Tel
Co
Ohio Bell Tel
Co
Tenneco Inc
M o h a s c o Industries, Inc
Massmutual Mtge & Realty Inv
Florida Pxvr Co
Pacific Pwr & Light Co
G u l f Pwr Co
Trail Mobile Finance Co
Ohio Power Co
Consolidated Food Corp
Coastal State Gas Producing
Union Tank Car
M f g Hanover Trust
Debs
1st mtg
Com stk
Notes
' Debs
1st mtg
pipeline
Com stk
Debs
1st mtg
1st mtg
Bonds
Notes
1st mtg
SF debs
1st mtg
equip trst
certf
Debs
60.0
40.0
50.2
50.0
100.0
1996
2001
5.00
7.88
5. 00
7.,85
A
1978
2011
6.38
7.50
6.,38
7.,55
Aaa
Aaa
100.0
21.1
50.0
50.0
35.0
21.0
25.0
40.0
50.0
50.0
1991
8.20
8.,20
A
1991
2001
2001
2001
1978
6,.25
7.,60
8,.00
7,.50
7,.50
1996
1991,
6.75
7.38
8.00
7.50
7.50
6.38
7.38
7.75
25.0
100.0
1991
1979
7.75
6.50
7 .75
6 .50
——
——
--
Aa
Baa
Aa
A
A
Aa
A
--
7 .38
7 .75
i:
A
n.r
TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
Oct. 1 thru Oct. 15, 1971
TYPE 2
ISSUER
i
AMOUNT
(MILLIONS
OF
DOLLARS)
MATURITY
COUPON
RATE-OR
NET INTEREsf*C05T
OFFERING
YIELD
MOODY •s
RATING
State and Local
Buffalo, N. Y.
Buffalo, N.Y.
Kentucky Turnpike, Auth
Kentucky Turnpike, Auth
Minneapolis, M i n n
Minneapolis, M i n n
Minneapolis, Minn
Maine
Maine
Massachusetts Port,, Auth
Massachusetts Port, Auth
Chicago Public Bldg. Com, 111
Orlando, Utilities Comm, Fla
Michigan, State of
Dallas, Indp S/D
Chartiers Valley Jt. Sch Bldg
Auth, Pa
Montgomery Co., Md
Puerto Rico
South Carolina
\
G.O.
G.O.
Rev.
Rev.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev.
Rev.
Rev.
Rev.
G.O.
G.O.
8.3
18.3
13.5
71.5
3.6
4.4 \
2.2
13.8
8.0
19.9
58.1
25.0
33.5 .
50.0
17,5
Rev
G.O.
G.O.
G.O.
11.3
30.0
40.0
3.79
1972-1990
1972-1985
1975-1991
2001
1973-1981
1
1973-1981
1972-1991
1990-1991
1972-1991
1975-1998
2001
1973-1991
1973-1998
1972-2013
1972-1991
4.34
3.96
--
4.43
3.66
4.20
4.27
4.23
4.96
4.85
4.17
1972-1993 • 5.73
1972-2001 4.32
1973-1996 4.82
1972-1987 3.87
2..80-4. 90
2..80-4. 40
4.,00-5. 90
6..20
2,.90-4.75
3..00-4. 75
2..90-4. 75
2,.80-4. 60
2..80-5. 00
4,.00-5. 90
6..03
3,.30-5. 50
2,.90-5. 40
3..10-6. 00
2 . 75-4.70
3 . 00 —
3 .10-5. 30
•Aa
Aa
Aaa
Aaa
Aaa
Aaa
Aaa
1
A-l
Aa
A
Aa
BaaA-l
Aa
TABLE 6: Large Long term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1
Oct. 1, throuth Oct. 15, 1971
/TYPE '
AMOUNT
(MILLIONS
OF
DOLLARS)
MATURITY
COUPON
RATE OR
NET INTEREST COST
OFKKRli.C
YIELD
MOODY'S
RATING
Other
Federal Land Ban
Jahk
Federal Land Bank
FHLB
Bonds
Bonds
Bonds
326.0
300.0
200.0
1974
1977
1981
5.85
6.35
5.85
6.35
6.60
6.60
I
tfights oft vring. Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
In case of State and local government securities, G.O. denotes gem-rat obligation;
!<ev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut., revenue bonds secured only by income from quasi-ut i1it ies; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
ISSUER
TYPE
AMOUNT
(MILLIONS
OF
DOLLARS)
APPROXIMATE DATE
OF OFFERING
,
Corporate
FMC Corp
Carolina Telephone & Telegraph
Carolina Pwr & Light Co
Houston Natural Gas Corp
Firestone Rubber Co
Borg-Warner Accepance Corp
Texfi Industries Inc
Illinois Pwr Co
i Portland Gen'1 Elec Co
International Harvester Credit
Corp
. Beneficial Corp
• Beneficial Corp
"o Engelhard Mineral & Chemical
Mountain Bell
Mountain Bell
. Consolidated Freightways, Inc.
Southwestern Elec Pwr Co
Trans American Financial Corp
Pacific Gas & Elec Co
Beneficial Standard Mtge Inv.
Cenco Instrument Corp
Honeywell Finance Inc.
Combustion Engr Inc.
Telex Corp
Dallas Pwr & Light Co
a Metropolitan Edison Co
* Alison Mtge & Inv Trust
Detroit Edison Co
Detroit Edison Co
Gen 1 1 Telephone
Co of Michigan
Penna Pwr & Light Co
, Consumers Pwr Co
Gulf States Utilities Co
Jersey Central Pwr & Light Co
International Paper Co
. Delmarva Pwr & Light Co
Pacific Lighting Service Co
Debs
Debs
1st Mtg
Debs
Debs
Debs
Conv deb
1st mtg
1st mtg
75.0
20.0
70.0
32.0
100.0
30.0
25.0
35.0
20.0
Notes
Notes
Debs
Debs
Debs
Notes
Debs
Mtg
Debs
1st mtg
Conv debs
Debs
Debs
SF debs
Debs
1st mtg
1st mtg
Debs
Comm stk
genl & ref
mtge
Bonds
Comm stk
1st mtg
1st mtg
Bonds
Conv debs
1st mtg
Debs
60.0
50.0
50.0
60.0
125.0
75.0
25.0
30.0
50.0
125.0
15.0
30.0
50.0
50.0
25.0
30.0
15.0
25.0
60.0
90.0
18.0
35.0
60.0
35.0
25.0
60.0
35.0
30.0
^
.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
18
18
19
19
19
19
19
20
20
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
. Nov.
Nov.
Nov.
Nov.
Nov.
21
25
25
25
26
26
26
27
27
28
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Dec.
4
4
4
8
9
10
1
3
3
4
4
*
'
12
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)
ISSUER
1
TYPE
AMOUNT
(MILLIONS
OF
DOLLARS)
^
of
October 1 5 ^ 1 9 7 1
APPROXIMATE DATE
OF OFFERING
State and Local
Columbus, Ohio
New York
New Orleans, La
North Dakota
Detroit, M i c h
California State
Salt River Proj Agric Imp &
Pwr, Dist
Sacramento M U D , Cal.,
Maryland
Port of N.Y. Auth
Penna State Public Sch Auth
Los Angeles Co, Flood Contr
D i s t , Calif
L o s Angeles DWAPS
Ohio, State of
Guilford Co., N.C.
Essex Co., N.J.
Anne Arundel Co, Md
California, State of
*
1
2
, 11 .8
96 .0
18 .0
15,.0
20,.0
13,.7
Oct.
Oct.
Oct.
Oct.
Oct.
Oct.
18
21
21
26
26
27
G.O.
Rev.
G.O.
Rev.
Rev.
52..0
50.,0
60..0
100.,0
15.,7
Oct.
Oct.
Oct.
Oct.
Oct.
27
27
27
27
28
G.O.
Rev
G.O.
G.O.
G.O.
G.O.
G.O.
19. 0
50. 0
100. 0
10. 0
26.0
15. 0
150. 0
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
Nov.
2
4
4
9
11
17
G.O.
Bonds
Aurp rev
G.O.
Rev.
Rev.
Included in table for first time.
~~
:
Includes corporate and ether issues of 515 million and over; State and local
Government issues of 510 million and over.
/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.
Table 8
13
STOCK PRICES AND VOLUME
STOCK PRICES 1 '
NYSE INDEX 3 -
Sept
D J . INDUSTRIALS
TRADING VOLUME '
AMEX 4
5 0 . 3 2 (5/14)
49.31 (7/29)
968.85 (5/14) 3 2 . 9 1 (1/13)
769.93 (12/17: 2 5 . 0 2 ( 7 / 2 9 )
16.5 ( 3 / 2 9 )
8.6 (8/29)
.0 (1/31)
3 . 6 (11/21)
5 2 . 3 6 (1/5)
3 7 . 6 9 (5/26)
8 4 2 . 0 0 (12/29]27.02 (1/8)
6 3 1 . 1 6 (5/26) 19.36 (5/27)
18.5 (12/4)
7.8 (8/14)
7.1 (1/2)
1.8 (8/14)
5 7 . 7 6 (4/28)
48.73 (1/4)
9 5 0 . 8 2 (4.28) 26.68 ( 4 / 2 8 )
8 3 0 . 5 7 ( 1 / 4 % 22.72 (1/4)
22.1 (2/12)
6.7 ( 2 / 1 2 )
2 . 7 (8/13)
17
24
55.66
55.56
55.24
54.26
912.75
911.00
908.22
889.31
25.61
25.66
25.59
25.35
10.8
12.2
15
54.66
54.94
54.06
893.98
893.91
874.85
25.-54
25.71
25.37
11.4
14.8
12.3
3
10
11.0 (8/13)
11.4
14.6
3.1
3.3
3.2
2.8
3.1
4.1
3.8
NOTES:
1.
Figures other than highs and lows are Fridays only'.
Highs and lows are for the year and are not necessarily for Fridays.
2.
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:
Days/
Through:
Week
*
From
January 3, 1969
July 7, 1969
January 2, 1970
July 3, 1969
December 31, 1969
May 1, 1970
3.
12/31/65 = 5 0
4.
Average dollar value of shares listed.
.
4
4-1/2
5
-5—
5
5
20
22-1/2
25
14
TABLE 9: Security Credit
CREDIT EXTENDED TO
MARGIN CUSTOMERS B Y :
BROKERS 1 | BANKS 2 j TOTAL
END OF PERIOD
CUSTOMERS 1
NET DEBIT
BALANCES
NET CREDIT
CUSTOMERS' NET EXTENDED BY
BROKERS A N D
FREE CREDIT
DEALERS 3
BALANCES
Outstanding;
1970
Aug.
Sept.
Oct.
Nov. ,
Dec.
1971 -Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
3,810
3,920
4,010
4,010
4,030
2,300
2,330
2,270
2,320
2,330
6,110
6,250
6,280
6,330
6,360
(4)
(4)
(4)
(4)
(4)
2,083
2,236
2,163
2,197
2,286
(4)
(4)
(4)
(4)
(4)
4,000
4,090
4,300
4,530
4,620
4,720
4,790
4,850
2,300
2,330
2,360
2,340
2,340
2,390
2,420
2,430
6,300
6,420
6,660
6,870
6,960
7,110
7,210
7,280
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
2,452
2,743
2,798
2,660
2,550
2,440
2,210
2,200
(4)
(4)
(4)
(4)
(-4)
(4)
\4)
(4)'
10
110
90
10
30
-60
50
10
-60
140
30
50
30
-30
30
30
-20
-60
120
240
210
90
150
100
70
Change in
Outstanding
1970
Aug.
Sept
Oct.
Nov.
Dec.
1971 -Jan
Feb.
Mar.
Apr.
May
June
July
Aug
l"
2
3
,
-
-
20
-30
90
210
230
90
100
70
60
-
- .
50
30
10
—
—
-
-
-
*
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- • -
171
153
-73
34
89
291
291
55
-138
-110
110
230
-10
—
—
—
—
-
—
-
-
—
—
-
—
-
-
-
-
-
-
Margin debt, as reported by the New York Stock Exchange. Although margin debt
until March 1968 included loans secured by U.S. governments, the amount of such
loans included is thought to have been small.
Q
"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.
,
discontinued.
Digitized4 for SeTies
FRASER
5
Chances in series.
TABLE 10: Savings Flows at Nonbank Depositary Intermediaries
($ millions)
DATE
MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
ANNUAL
NEW
MONEY2
GROWTH
NET
RATE 1
FLOW
SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
ANNUAL
MONEY2
NET
GROWTH
FLOW
RATE 1
TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW
NET
NEW
MONEY 2
Not Seasonally Adjusted
4,203
2,549
4,466
1968
1969
1970
1970 - July
August
September
1971 - J u l y
August
September jJ
7.0
4.0
6.7
297
176
575
——
416,
300
600
—
—
—
1,143
-763
936
7,432
4,200
11,173
174
81
-8
543
550
1,827
276
200
0
' 1,554
1,106
2,610
.
——
--
6.0
3.2
8.2
485
511
575
840
726
2,402
—
1,463
1,050
1,100
1,970
1,406
3,210
——
4,172
2,791
2,970
3,167
1,707
2,549
21.8
14.3
15.1
15.9
8.4
12.5
—
—
—
""
•
3,881
-1,766
6,231
11,635
6,749
15,639
--
• —
6.3
3.4
7.7
2,738
-1,003
5,295
659
592
567
.
--
—
1,714
1,250
1,100
Seasonally Adjusted
1971 - April
May
June
July
- ,
August
September j5/
\
2
3
1,176
795
818
566
425
450
19.0
12.7
12.9
8.8
6.6
6.9
——
—
—
-—
2,996
1,996
2,152
2,601
1,282
2,099
23.1
15.1
16.1
19.2
9.3
15.1
—
-——
—
—
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 Thrift Institutions
DATE
TOTAL
OUTSTANDING COMMITMENTS
ALL
MUTUAL
SAVINGS
SAVINGS &
BANKS
LOAN
ASSOCIATIONS • (N.Y. STATE)
I
|
TOTAL
1
NET CHANGE
ALL
MUTUAL
SAVINGS
SAVINGS &
BANKS
LOAN
• (N.Y. STATE)
ASSOCIATIONS
(Billions of Dollars, Set sonally Adjusted)!/
1970 - Aug.
Sept.
Oct.
Nov.
Dec.
9.8
8.9
9.3 •
9.6
10.1
1971 - J a n .
Feb.
Mar.
Apr.
May
June
July
' Aug.
10.4
11.2
12.6
13.8
15.3
16.1
16.3
16.4
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
8.3
8.9
10.1
11.1
12.2
13.0
13.2
13.3
2.1
2.3
2.5
2.8
3.1
3.1
3.1
3.1
.25
.80
1.36
1.30
1.56
.77
.24
.13
.29
.36
.37
.34
.28
.20
.60
1.16
1.01
1,21
.72
.28 r/
.08
Based on d;ita. from Federal Home Loan Bank Board a m 1 Savings Banks Associations of
New York State. Net changes are derived directly from unrounded outstandings
levels as reported and after seasonal adjustment by Federal Reserve.
Subtotals
may not add to totals because of rounding. Mutual Savings Banks and total data
include building loans beginning August 1967.
-.08
-.11
-.07
.01
.23
.05
.20
.20
.29
.34
.05
.02
.05
°
17
TABLE 12: Net Change in Mortgage Holdings
DATE
TOTAL
INCLUDING.
FNMA-GNMA
TOTAL
1
FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
COMMERCIAL
SAVINGS
LOAN
BANKS
BANKS
ASSOC.
LIFE
INSURANCE
COMPANIES
FNMA-GNMA
Not Seasonally Adlusted
1967
1968
1969
1970 e/
20,016
23,781
24,189
21,822
1970 - June
July
Aug.
1971 - June
July
Aug.
18,219
21,273
19,814
16,913
4,639
6,677
5,404
2,462
3,153
2,787
2,682
1,845
7,520
9,350
9,676
10,288
2,907
2,459
2,052
2,318
1,797
2,508
4,375
4,909
2,136
2,089
2,070
1,739
1,626
1,671
187
200
300
209
160
182
1,140
1,079
1,114
203
187
75
397
463
399
4,544
4,264
n.a.
4,411
3,948
1,300
1,000
1,000
435
389
n.a.
2,693
2,511
2.372
-17
48
133
316
626
,
Seasonally Ad lusted
1970 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1971 - Jan.
Feb.
Mar.
Apr. *
May
June
July
Aug
1
2,083
1,017
2,192
2,128
2,049
2,604
1,860
2,097
2,988
2,939
3,280
4,177
4,259
n...
1,575
1,509
1,828
1,808
1,820
2,504
1,893
2,184
2,996
2,018
3,273
3,972
3,898
....
165
268
329
295
224
312
383
445
688
653
840
1,197
969
972
142
175
245
138
. 176""
250
175
217
380
283
313
413
373
n.a.
1,055
983
1,104
1,175
1,289
1,710
1,311
1,425
1,774
2,044
2,095
2,339
2,484
2,239
213
83
151
200
131
232
24
97
154
38
25
23
72
n.a.
508
408
364
320
229
100
-33
-87
-8
-79
7
205
361
634
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 84 per cent of the net increase estimated for all holders in 1970.
18
TABLE 13: Net Increases in Mortgage Debt Outstanding
1
Billions of dollars, SAAR QUARTER
TOTAL
RESIDENTIAL 3
1- to 4FAMILY
MULTIFAMILY
COMMERCIAL
MULTI-AND
COMMERCIAL
FARM
1966 - II
IV
18.6
15.1
10.9
9.1
8.3
7.0
2.6
2.1
5.5
4.1
8.1
6.2
2.2
1.8
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
7.2
8.3
8.8
8.6
1.8
1.8
2.5
2.8
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
9.6
9.0
10.1
11.3
2.3
2.2
:
1.8 ••
1.8
1969 - I
II
III
IV
31.3
28.9
26.5
25.1
25.0
21.5
19.3
18.3
18.6
16.9
14.6
13.0
4.4
4.7
4.7
5.3
6.2
5.2
5.3
5.4
10. 6
9.9
10.1
10.7
2.2
2.2
1.8
1.4
1970 - I
II
III r/
IV r/
20.2
22.8
29.5
31.6
13.8
16.9
22.1
22.5
8.8
11.5
15.8
16.1
5.0
5.4
6.3
6.4
4.9
4.3
5.2
6.9
9.9
9.7
11.5
13.4
1.5
1.5
2.1
2.1
1971 - Ip r/
IIP r/
36.3
47.6
25.9
36.4
17.7
26.2
8.2
10.2
8.1
8.9
16.3
19.1
2.2
2.3
1
2
Derived from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of M u t u a l 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.
M a y differ somewhat from related flow of funds series mainly because of more
3
aggregative type of seasonal adjustment.
Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family
.
:
:
j
i
and multifamily mortgage debt combined.
I
A/
i
TABLE 14: FNMA Weekly "Auction" Results
WEEK
ENDED
1971 - June
Aug.
Sept.
COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEARH
90TOTAL
TOTAL
6OFFERED
MONTH & OVER
DAY
IMPLICIT YIELD 2 (per cent)
90DAY
6M0NTH
1-YEAR 1
& OVER
1
14
28
322.4
664.4
539.3
146.6
191.2
262.2
77.1
133.7
191.8
57.8
47.3
60.3
11.6
10.2
10.4
8.05
7.91
7.92
8.18
8.15
8.22
8.16
8.22
8.28
12
26
606.0
686.2
241.1
183.4
161.8
183.4
58.2
21.1
7.98
8.07
8.23
8.31
7.97
--
25
634.6
153.5
153.5\
7
445.2
188.6
188.6
--
--
--
--
7.88
Note: Under ^ the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. 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.
For "proposed construction" of new homes only.
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 50 basis points fee paid by investors
to servicers.
3
FNMA announced limit of accepted bids for next week's auction.
20
1
TABLE 15: Private Housing Starts and Permits
STARTS
DATE
1970 - Aug.
Sept.
Oct.
Nov.
Dec.
1971 - Jan.
Feb.
Mar.
Apr.
May.
June
J u l y r/
Aug p/
UNADJUSTED
TYPE OF FINANCING
FHA | VA I OTHER
SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL |1-FAMILY 2 OR MORE
BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2
1,425
1,509
1,583
I,693
2,054
838
881
890
934
1,240
587
627
693
759
814
1%8.7
130.9
140.9
126.9
121.4
34.1
34.3
40.433.7
63.2
5.6
5.3
5.8
5.5
5.7
87.7
91.3
94.7
87.2
52.5
1,378
1,388
1,523
1,487
1,768
II,725
;1,754
|1,959
11,912
!19 9 75
946
985
1,048
1,098
1,124
1.177
1.178
1,221
779
769
911
814
851
823
1,037
1,007
110.6
102.2
32.2
27.3
33.4
44.6
40.7
46.1
42.0
4.6
4.7
6.9
8.5
8.4
9.3
9.3
72.8
68.4
127.6
148.0
149.4
137.8
142.6
1,635
1,563
1,627
1,638
1,927
1,849
2,052
12,000
12,215
2,229
167.9
201,1
.
8
198.5
193.8
193.2
201.4
2,008
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 guar- f
antee the m o r t g a g e s ^ ^ A s reported by FHA and VA, a unit is started when a field f:
office receives- the first compliance inspection report, which is made before
I
footings are poured in some cases but normally after the foundations have been
Incompleted. 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 are for 13,000, or all known permit-issuing places. Unlike
starts, seasonally adjusted building permits reflect direct adjustment for
j
differences in the number of working idays per month, as well as other
differences in timing and coverage.
&
TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES '
DATE
30-year
CONVENTIONAL
MORTGAGES
3
1968 - High
Low
1969 - High
Low
7.52
6.78
8.62
7.99
7.40
6.75
8.35
7.55
1970 - High
Low
9.29
8.40
1971 - Apr.
May
June
July
Aug.
7.37
7.75
7.89
7.97
7.92
1
2
3
4
5
6
1 SPREAD BETWEEN YIELDS
; ON CONV. &
j
FHA MORT|
GAGES 5
1
NEW
I SPREAD BETWEEN
Aaa CORYIELDS ON NEW
PORATE
CORPORATE BONDS
BONDS
AND
4
FHA MORTGAGES 6
.02
-.27
-.13
-.40
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
7.55
7.65
7.70
7.80
7.85
.18
-.10
-.19
-17
-.07
7.57
8.01
7.90
7.96
7.65
-.20
-.26
-.01
.01
.27
,
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.
Based on FHA-field-office oponions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Data shown
are for 30-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.
,
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities
See note for Table 1.
Yield spread equals conventional mortgage rate less FHA secondary market yield.
Yield spread equals F H A secondary market yield less new Aaa corporate band yield.
22
.
(
TABLE 17: Conventional Mortgage Terms
DAT
NEW HOMES
CON- FEES &
1
TRACT CHARGES EFFEC- MATURITY
RATE
(PER
TIVE ! (YEARS')
(PER
CENT) RATE '
3
CENT)
2
j
LOAN /
PRICE LOAN
RATIO AMT.
(PER ($000)
CENT)
4
1
EXISTING HOMES
CON- FEES &
LOAN/
TRACT CHARGES EFFEC- M A T U - PRICE
(PER
RATE
TIVE
RITY RATIO
(PER
GENT) RATE (YEARS) (PER
CENT)
CENT)
2
3
LOAN
AMT.
($000)
4
1970
Aug.
Sept.
Oct.
Nov.
Dec.
8.35
8.31
8.33
8.26
8.20
0.98
1.03
1.05
0.99
1.07
8.52
8.48
8.51
8.43
8.38
24.8
25.2
25.1
25.3
25.8
8.03
7. 74
7.52
7.37
7.36
7.38
7.51
7.60
0.92
1.00
0.83
0.73
0.71
0.74
0.90
0.84
8.18
7.91
7.66
7.49
7.47
7.50
7.66
7.73
25.8
26.2
25.9
26.3
26.1
26.3
26.3
26.2
71.6
72.7
72.4
72.1
73.8
25.5
25.3
24.8
25.2
25.8
8.25
8.27
8.20
8.18
8.12
0.89
0.88
0.88
0.85
0.85
8.41
8.42
8.35
8.32
8.26
23.1
22.8
22.8
22.7
23.3
71.5
71. 7
71.5
71.5
71.9
21.4
21.0
20.5
21.1
21.7
73.3
26.4 7.94
26.2 7.67
73.9
°
26.0 7.47
73.7
73.6
26.2 7.34
74.0
26.7 7.33
27.2 7.38
73.7
74.5
27.1 7.50
74.0
26.5 7.59
0.82
0.79
0.77
0.75
0.71
0.74
0.75
0.74
8.08
7.80
7.60
7.47
7.45
7.50
7.63
•7.71
23.5
24.0
24.1
24.2
24.0
24.3
24.2
24.4
72.5
73.1
73.5
73.6
73.2
73.9
74.5
74.4
22.0
22.5
23.0
23.1
23.3
28.3
23.2
23.4
1971
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
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 characteristics of conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data exclude 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 rates--in 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.
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Includes fees & charges amortized over a.10 year period in addition to the contract
interest rate.
Derived by FRB.
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@FedFRASER