Full text of H.16 Capital Market Developments : February 14, 1972
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Ac,rr DECONTROLLED AFTER SIX M O M S . M>mmL L.5.8 Confidtntiol (F.R.) — — — - — — r \ — \ — — — — F e b r u a r y 14, / CAPITAL ^ MARKET DEVELOPMENTS -t6"v " 1972 • is-t INDEX 3-5 D e v e l o p m e n t s in t h e C o r p o r a t e and M u n i c i p a l Bond M a r k e t s 6-7 C a p i t a l Market Y i e l d s 8-13 C a p i t a l Market V o l u m e 14-17 Stock Market 18-33 Mortgage Market SYMBOLS: e Estimate p Preliminary r n.a. Revised Not a v a i l a b l e 3 TABLE 1: Yields, Volume and Reception YIELDS MOODY'S SEASONED NEW ISSUE 1 Aaa WEEK ENDING: 1972 - Jan. 7 14 21 28 7.00 6.86 7.01 7.19 7.19 7.17 7.16 7.22 Feb. 4 11 18 7.22 7.30 7.25 7.29 MOODY'S SEASONED Aaa WEEK ENDING: YIELDS BOND BUYER SEASONED 20 BOND INDEX CORPORATE BOND MARKET : VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 514 65 n. a. 76 n.a. 599 70 312 n.a. 332 75 n.a. . 285 620 585e 77 80e MUNICIPAL BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END OF WEEK OFFERINGS n.a. n.a. BONDS SCHEDULED WITHIN 28 DAYS 1972 - Jan. 7 14 21 28 4.75 4.65 4.90 5.05 5.03 4.99 5.17 5.29 125 594 417 556 72 62 68 79 1,000 1,093 1,239 858 Feb. 4 11 18 5.10 5.00 5.35 5.27 214 667 363e 87 84 1,098 1,080 .. 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: See footnotes to Table 3 TABLE 2: Details on Inventories DAT): OFFERED AMOUNT (MIL. $) ' 2/10 2/9 2/9 2/9 2/9 2/9 2/9 2/8 2/8 2/7 2/2 1/25 OFFERED 2/7 2/7 2/7 2/3 1/27 1/20 Feb. Shell Oil Co. First Banc. Group Ohio Cent. Hudson G. & E. Charter N.Y. Singer Cr. Comm'l Cr. Comm'l Cr. Credit Thrift Fin. U.S. tJat'l. Bk. Ore. Penn. Pwr. & Lt. Southeastern Tel. Ches. Pot. Tele. M d . Debs. 7 1/4 7 7 3/4 7 7 7/8 7 3/4 7 8 7 3/4 7 5/8 7.65 7 1/4 14 21 28 4 11 7.25 7.10 7.60 7.13 7.95 7.85 7.09 8.05 7.75 7.55 7.65 7.30 Aa Aa -- -- Aa A Aaa CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST ORIGINAL COUPON ISSUER YIELD AMOUNT Niagara-Mohawk Pw Gen'1 Tele of 111 Tampa Elect 80.0 20.0 40.0 INVENTORIES 1 MUNICIPALS BLUE LIST 1 IN SYNDICATE DATE 1972 - Jan. | I ] 200.0 15.0 20.0 60.0 20.0 75.0 25.0 25.0 25.0 75.0 20.0 50.0 DATE 1 RELEXSED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND YIELD CALL PROTECTION | COUPON ISSUER 7 5/8 7 1/2 7 3/8 7.50 7.45 7.30 10 7 5 7 6 10 6 10 10 5 5 5 f" ESTIMATED PR01 PORTION SOLD 75% 75% 65% 70% 75% 90% 75% 85% 98% 25% 50% 65% yrs yrs yrs yrs yrs yrs yrs yrs yrs yrs yrs yrs WEEK INCREASE RATING AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED +19 +20 +20 A A Aa 5 yrs 4 yrs 5 yrs 70% 70% 40% CORPORATES IN SYNDICATE 993 969 885 262 237 197 144 94 121 885r 780 96 123 147 147 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 DATE NEW CORPORATE Aaa 1 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 (12/26) 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 9.30 (6/19) 7.68 (12/18) 8.60 (7/3) 7.48 (12/21) 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) 6.23 (6/24) 4.97 (10/21) 7.00 6.86 7.01 7.19 7.19 7.17 7.16 7.22 6.01 5.96 6.00 6.04 5.03 4.99 5.17 5.29 1972 - Jan. \ 7 14 21 28 Feb. 4 11 1 7.22 7.25 6.09 5.35 7.30 7.29 6.10 5.27 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. TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS CORPORATE PERIOD 1 STATE AND LOCAL 2 1972 1971 1970 j 1972 3,350e 3,115 3,000 6,075 2,636 1,802 3,539 1 1 1,700e j ' April May June 4,007 3,271 4,375 3,170 3,909 3,389 July August September 4,147 2,532 3,768 October November December January February March 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1 2 1971 1970 2,732 1,851 2,258 1,340 1,214 1,555 1,891 2,167 2,013 1,647 996 1,085 2,768 2,274 2,518 1,989 1,903 2,098 1,348 1,359 1,758 3,369 3,665 3,375e 2,777 4,182 3,980 1,728 2,264 2,068 1,924 1,748 2,190 12,190 11,654 10,447 10,409e 7,977 10,468 8,560 11,939 6,841 6,081 5,990 6,060 4,109 3,728 4,465 5,862 23,844 34,291 44,700e 18,445 27,005 38,944 12,912 18,902 24,962 7,837 12,302 18,164 j 1 j % Securities and Exchange Commission estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. 1 | TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH TOTAL GROSS PROCEEDS BY TYPE OF ISSUE COMMON MEMO: AND BONDS ISSUES INCLUDED PUBLICLY PRIVATELY PFD. MFG. OFFERED PLACED FOREIGN | CONVERTIBLE STOCK 1970 - IV 11,938 7,827 1,421 2,690 226 1971 - I II III IVe 12,190 11,688 10,447 10,409 8,369 6,546 4,725 5,170 1,516 1,758 1,641 1,893 2,306 3,384 4,079 3,345 84 215 114 n.a. GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS 1 737 3,169 3, 406 1,346 4,020 724 1,351 652 762 3,794 3,130 2,202 2,266 3, 197 2, 910 2, 651 3,,135 1,606 896 2,263 1,036 3,594 4,753 3,331 3,972 1970 - Dec. 3,979 2,436 834 709 159 165 1,056 955 282 1,687 1971 - Jan. Feb. Mar. 3,115 3,000 6,075 2,033 2,201 4,135 594 275 647 489 524 1,293 43 3 38 99 168 557 716 661 2,417 676 1,,069 1,452 391 683 532 1,332 587 1,675 Apr. May June 4,042 3,271 4,375 2,116 2,148 2,282 507 491 760 1,419 633 1,332 116 47 52 384 255 712 1,135 588 1,206 1,,267 588 1,,055 273 405 218 1,367 1,489 1,897 July Aug. Sept. 4,147 2,532 3,768 1,331 1,428 1,966 619 416 606 2,196 687 1,196 72 34 8 199 160 293 582 474 1,146 732 849 1 ,070 1,622 359 , 282 1,210 850 1,271 Oct. Nov. Dec. e/ 3,369 3,6f5 3,375 1,942 2,003 1,225 703 390 800 724 1,271 1,350 59 60 n. a. 220 392 150 663 828 775 933 1 ,202 1 ,000 432 264 340 1,341 1,371 1,260 1972 - Jan. e/ 3,560 1,760 900 900 240 500 550 770 l n.a. 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. , 1,740 TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. T r e a s u r y ) 1 Jan. 31, 1972 thru Feb. 11, 1972 ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST OFFERING YIELD MOODY': RATING Corporate Pacific NW Bell Tel B.F. Saul Real Estate Inv. Tr G.Eo Credit Corp Niagara Mohawk Pwr Corp Southeastern Tel Co IDS Realty Trust Pa Pwr & Lt Co Texas Pwr & Light Texas Pwr & Lt Singer Credit Corp Singer Credit Corp Fla Pwr & Lt Co Central Hudson Gas & Elect Co Credithift Fin Corp Charter New York Corp First Banc Group of Ohio U.S. Nat*l Bank of Oregon Shell Oil Co Commercial Credit Co Commercial Credit Co Tri-South M t g Inv Dean Witter & Co Notes Conv deb Notes G e n 1 1 mtg 1st mtg Bene int 1st mtg Pref 1st mtg Debs Notes Cm st 1st mtg Debs Debs Debs Debs Debs Notes Notes Conv deb Cm st 75.0 40.0 75.0 80.0 20.0 50.0 75.0 25.1 40.0 20.0 30.0 66.8 20.0 25.0 60.0 15.0 50.0 200.0 75.0 25.0 25.0 28.8 1979 1991 1979 2002 1997 —— 2002 -- 7.00 6-1/2 7.05 7.50 7.65 -— 7-5/8 —— 2002 1992 1979 7-1/2 7-7/8 7-1/8 -— — 2002. 1992 1979 1980 2002 2002 1992 1979 1992 7.67 8.00 7.00 7.00 .7-3/4 7.25 7-3/4 7.00 7.00 6.90 6. 50 7.05 7.50 7.65 Aaa -- A A —- —— 7.55 Aa -- 7.40 7.95 7.125 — 7.60 8.05 7.125 7.10 7.75 7.25 7.85 7.09 7.00 — Aaa — •» -—- Aa —— —— Aa —— OT — —W TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 Jan. 31, thru Feb. 11. 1972 AMOUNT 1 ISSUER TYPE 2 COUPON (MILLIONS OF DOLLARS) MATURITY RATE OR NET INTEREST COST State and Local L'Anse Creuse S/D, Mich Fort Lauderdale, Fla Fort Lauderdale, Fla Texas Wtr Dev Bd Tucson Arizona Hartford, Conn Hartford, Conn Maine State Housing Auth Ohio, State of Penna Higher Ed Fac Auth Sch Dist Co Alexandria, La Michigan New York State Dorm Auth Port of New York North Carolina Fort Worth, Texas Alaska, State of Tallahassee, Fla Shelby Co Health & Ed Fac Bd, Tenn Shelby Co Health & Ed Fac Bd, Tenn 22.8 G.O. Rev. 15.9 G.O. 8.4 Rev. 25.0 G.O. 12.0 10.0 G.O. G.O. 15.0 Rev. 19.7 60.0 G.O. G.O. 21.7 G.O. 29.8 Rev. 13.0 G.O. 70.0 Rev, 29.2 Rev. 150.0. G.O. 45.9 G.O. & Rev 24.4 23.4 G.O. Elec Rev 23.0 Rev 9.4 Rev 20.7 1973-2001 1973-1997 1973-1997 1973-1992 1973-1992 197-3-2012 1973-1992 1973-2002 1973rl992 Bonds Debs Debs 1975 1974 1976 — 1973-1991 1973-1996 1974-1998 1974-2003 2007 1972-1990 1973-199? 1973-1992 1973-1992 1972-2004 1972-2004 5.58 5.08 5.06 4.68 4.67 5.06 4.70 5.50 *— 5.93 4.47 5.21 4.57 5.92 5.91 4.34 —— ——— 6.98 6.98 I J I;.C YIELD 3. 00-6. 20 2. 75-5. 65 2. 75-5. 50 2. 60-5. 25 2. 80-5. 20 2. 70-5. 30 2,,60-5. 30 2.,90-5. 70 3.,00-5.,15 MOODY'S RATING Baa A A Aaa A Aaa Aaa -— Aa —— -- 2.,80-4.,90 2.,90-5.,45 2,,90-5.,00 3,.25-6.,20 5,.90 2,.30-4,,75 4,.50-5,.60 2,.75-5,.50 2,.70-5,.20 6 .98 Aa A Aa *- * A . Aaa Aa Baa-1 A -- Other Federal Land Banks FHLB FHLB * 1 425.0 50.0 50.0 5.70 7.10 7.38 5,.70 5 .07 5 .80 8ights oC taring. i 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 general obligation; '<ev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-lit. , revenue bonds secured only by income from quasi-uti1itii s; Rvv.-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 Reconstruction .ind FRASER Development issues and non-qu.arantced issues by Federal Agencies. Digitized for —— — lo TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other tlian U.S. Treasury) 1 (continued) ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) As o f Feb 1 1 , APPROXIMATE DATE OF OFFERING Corporate Pacific Tel & Tel Co Pacific Tel & Tel Co Southern Pacific Trans Co Northern Trust Co Globe-Union Inc North Am Car Corp Akzona, Inc First Nat'l City Corp Appalachian Pwr Appalachian Pwr Co 1st National Bank of Oregon Columbus & Southern Ohio Elect Duke Pwr V a Pwr & Lt M i n n Pwr & Lt American Credit Corp Jim Walter Corp Northern States Pwr Union Commerce Corp Citizens & Southern Corp Public Sue of Colo Gen'l Tel of Wise Metropolitan Edison Texas Eastern Transmission Atico Mtg Investors Indianapolis Pwr & Lt GMAC Toledo Edison Consolidated Edison of N.Y. Duguesne Light Jersey Central Pwr & Lt San Fiego Gas & Elect Public Svc of Okla Kansas Gas & Elect Kansas Gas & Elect Columbia Gas System Duke Pwr Instutional Investors Trust Mobil Oil Corp Debs Notes Eq tr Bonds Bonds Eq tr Bonds Bonds Pref st Bonds Bonds Pref Cm st Pref st Pref st Bonds Bonds Bonds Bonds Conv debs Pref st 1st mtg Pref st 1st mtg Debs Bonds Debs Cm st Debs Pref st Pref Pref Bonds Bonds Pref Bonds Bonds Conv deb Debs 175.0 75.0 50.0 30.0 20.0 15.0 60.0 100.0 25.0 50.0 25.0 16.0 125.0 45.0 20.0 50.0 50.0 50.0 25.0 15.0 25.0 25.0 35.0 60.0 25.0 40.0 200.0 18.0 150.0 35.0 25.0 15.0 30.0 25.0 15.0 50.0 100.0 30.0 300.0 1972 February February February February February February February February February February February February February February February February February February February February February February February February February March March March March March March March March March March March March March INDEF 15 15 15 15 15 15 15 16 16 16 16 16 16 17 22 23 23 23 23 23 23 24 28 29 1 1 2 8 9 13 14 14 15 15 15 16 13 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 State and Local St. Paul, Minn Mass House Finance Agency Alabama Pub Sch & Coll Auth G.O. Rev Rev 12.0 20.0 27.0 February February February 14 14 16 Vermont Municipal Bd Bank G.O. & Adv ref 63.7 Islip Central S/D N.J. G.O. 11.2 Hartford Co Metro Dist, Conn Rev 10.0 New Jersey, State of G.O. 75.0 Penna State Pub Sch Auth G.O. 61.0 New York State Housing G.O. 175.0 Metro Water Dist., So. Cal. Rev 100.0 Newark, N. J. G.O. 15.0 Washington, State of G.O. 10.0 Washington, State of Rev 20.0 Chester City Sch Auth, Pa Rev 29.8 Huntington & Babylon, N.Y. C.S.D. G.O. 10.1 South Carolina G.O. 25.0 South Carolina Ref 15.9 New York State Housing Fin Agy Bonds 175.0 Minneapolis St. Paul Metro Area Metro Council, Minn Rev 33.7 Nassau Co., N.Y. G.O. 52.2 Chester City Sch Auth, Pa Rev 29.8 Jefferson Co. Sch Dist G.O. 22.0 New Orleans, La G.O. 11.0 Texas, State of G.O. 40.0 Jersey City, N.J. G.O. 12.8 Philadelpaia Sch Dist, Pa G.O. 40.5 Philadelphia S/D Pa G.O. 40.5 Lubbock, Tex G.O. 12.0 Baltimore, Md 35.0 G.O. San Gabriel Valley M u n Wtr Rev I Dist, Calif 17.5 Los Angeles Department Elec Rev 40.0 Ohio, State of 46.0 G.O. Sacramento MUD, Cal 28.0 Los Angeles Co Flood Control Dist, Calif i G.O. 27.0 February February February February February February February February February February February February February February February 17 21 23 23 23 24 29 29 29 29 * 1 February March March March March March March March March March March 1 1 3 5 6 7 7 7 9 14 March March March March 15 15 16 22 April 11 Included in table for first time. Includes corporate and other issues of 515 million and over; State and local Government issues of $10 million and over. 2 Includes foreign government and International Bank for Reconstruction and FRASER Development issues and non-guaranteed issues of Federal Agencies. Digitized for 12 STOCK PRICES AND VOLUME STOCK PRICES NYSE INDEX3' TRADING V O L U M E 2 ' 1 D J . INDUSTRIALS AMEX 4 - 1969 - High Low 50.32 (5/14) 968.85 (5/14) 32.91 (1/13) 49.31 (7/29) 769.93 (12/17) 25.02 (7/29) 16o5 (3/29) 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) 631.16 (5/26) 19.36 (5/27) 18.5 (12/4) 7.8 (8/14) 7.1 (1/2) 1.8 (8/14) 57.76 (4/28) 950.82 (4/28) 26.68 (4/28) 48.73 (1/4) 797.97 (11/23) 22.72 (1/4) 22.1 (2/12) 6.7 (2/12) 2.7 (8/13) High Low 1971 1972 - Jan. Feb. 11.0 (8/13) 5.3 5.9 7 14 21 28 57.21 57.22 57.39 57.78 910.37 906.68 907.44 906.38 26.14 26.53 26.71 27.03 17.5 17.1 19.0 18.7 6.1 6.1 4 11 58.26 58.33 906.68 917.59 27.38 27.47 19.9 19.1 7.1 6.3 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 In recent years, however abbreviated trading to the extent, and over the time Hours/ Days/ From Through: Day Week 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. 4 4-1/2 5 5 5 5 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 25 13 TABLE 9 : Security Credit END OF PERIOD CREDIT EXTENDED TO MARGIN CUSTOMERS BY TOTAL BROKERS 1 J BANKS? CUSTOMERS' NET DEBIT BALANCES NET CREDIi CUSTOMERS' NET EXTENDED BY FREE CREDIT BROKERS AND DEALERS 3 BALANCES Outstanding; 1970 - Dec. 4,030 2,330 6,360 (4) 2,286 (4) 1971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 4,000 4,090 4,300 4,530 4,620 4,720 4,790 4,850 4,930 4,950 4,910 5,400 2,300 2,330 2,360 2,340 2,340 2,390 2,420 2,430 2,430 2,410 2,400 2,440 6,300 6,420 6,660 6,870 6,960 7,110 7,210 7,280 7,360 7,360 7,310 7,840 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 2,452 2,743 2,798 2,660 2,550 2,440 2,210 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 2,200 2,100 2,160 2,170 2,220 Change in Outstanding: 1970 - Dec. 1971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 20 10 30 89 -30 90 210 230 90 100 70 60 -30 30 30 -20 -60 120 240 210 90 150 100 70 80 291 291 55 -138 -110 110 230 -10 100 -50 530 10 50 50 30 10 80 20 -40 490 -20 -10 40 60 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. "Bank loans to others than brokers and dealers for purchasing or carrying s.-i urities other than U.S. governments." The difference between customers' net debit balances and customers' nut Ltee credit balances, this figure represents the net credit extended by brokers arid dealers to the nonfinancial public. NOTE: With the exception of bank loan data, figures are supplied by the New Y^rk Stock Exchange and are end of month data. Bank loans are for weekly reporting large commercial banks. Broker data includes loans for regulated securities; hank data includes loans for the purpose of purchasing or carrying any security, whether regulated or not. Series discontinued. FRASER Changes in series. Digitized for TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS NET REGULAR DEPOSITS 3 NEW ANNUAL MONEY 2 GROWTH NET 1 RATE FLOW SAVINGS & LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL NET MONEY2 GROWTH 1 FLOW RATE TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW | NET NEW MONEY 2 Not Seasonally Adjusted 1969 1970 1971 £ / 1970 " November December January 1971 - November g/ December %/ 1972 - January 2,549 4,517 9,512 4.0 6.8 13.5 497 1,218 774 —— 631 1,180 850 -W -— 1971 - July August September October November £_/ December E./ 629 539 683 599 659 807 9.8 8.4 10.5 9.1 10.0 12.1 1972 - January e/ 942 14.0 1 2 3 1,044 1,161 2,476 1,584 3,991 3,383 « ** 1,432 1,537 3,113 1,562 1,484 -— 1,180 3,135 -n.a. 2,700 Seasonally Adjusted 2,193 4,315 3,550 -— 1,996 1,490 388 376 637 1,087 2,773 2,609 — — — -- -1,766 6,231 26,327 6,617 15,482 37,763 4,068 10,965 28,251 512 310 3.4 7.7 17.5 -1,003 5,295 20,664 -763 936 5,663 3.1 8.1 19.4 —""" —— 2,687 1,529 2,125 2,071 1,710 2,052 19.9 11.2 15.4 14.8 12.1 14.3 3,552 24.5 — -- 3,316 2,068 2,808 2,670 2,369 2,859 16.7 10.3 * 13.8 13.0 1144 13/3 -- 4,494 21.2 --— ---— -- — 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. i)ata 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 (N.Y. STATE) ASSOCIATIONS | | TOTAL 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars, Se asonally Adjusted)—^ 970 - Nov. Dec. 9.6 10.1 7.8 8.1 1.8 2.0 .35 .51 .34 .28 .01 .23 971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. r/ Oct. Nov. 10.4 11.2 12.6 13.8 15.3 16.1 16.3 16.4 16.4 16.3 16.6 8.3 8.9 10.1 11.1 12.2 13.0 13.2 13.3 13.2 13.1 13.2 2.1 2.3 2.5 2.8 3.1 3.1 3.1 3.1 3.2 3.2 3.4 .25 .80 1.36 1.30 1.56 .77 .24 .07 .12 -.01 .01 .20 .60 1.16 1.01 1.21 .72 .28 .10 -.01 -.01 .00 .05 .20 .20 .29 .34 .05 .02 .03 .13 .00 .01 1 . •16 TABLE 12: Net Change in Mortgage Holdings DATE TOTAL INCLUDING FNMA-GNMA TOTAL 1 FINANCIAL INSTITUTIONS MUTUAL SAVINGS & SAVINGS COMMERCIAL LOAN BANKS BANKS ASSOC. LIFE INSURANCE COMPANIES FNMA-GNMA Not Seasonally Adjusted 23,796 23,867 21,945 21,288 19,492 17,035 6,677 5,404 2,462 2,798 2,533 1,956 9,344 9,572 10,254 2,469 1,983 2,363 2,508 4,375 4,910 1970 - Oct. Nov. Dec. 2,193 2,005 2,798 1,826 1,752 2,650 294 280 200 162 183 302 1,175 1,171 1,653 193 118 495 367 253 148 1971 Oct. Nov. Dec. 3,731 3,593 n. a. 3,275 3,246 900 800 700 331 473 n.a. 1,979 1,941 2,335 65 39 n. a. 456 347 n.a. 1970 - Oct. Nov. Dec. 2,115 2,054 2,513 1,812 1,845 2,412 277 232 325 156 175 230 206 153 182 303 209 101 1971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 2,033 2,184 3,005 3,057 3,300 4,136 4,186 4,168 3,924 3,657 3,647 2,043 2,219 " 2,983 3,113 3,260 3,935 3,878 3,656 3,458 3,267 3,345 n.a. 394 475 690 685 864 1,219 977 901 902 884 752 826 200 217 401 293 318 386 374 400 306 329 465 n. a. 1968 1969 1970 1971 / Seasonally Adjusted n.a. 1,173, 1,285 1,675 1,348 1,426 1,801 2,082 2,036 2,309 2,455 2,252 2,122 1,977 2,058 2,354 101 101 91 53 42 21 72 130 128 77 77 n.a. -10 -35 22 -56 40 201 308 512 466 390 302a n.a. 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 1 9 7 0 TABLE 13: Net Increases in Mortgage Debt Outstanding Billions of dollars, SAAR TOTAL RESIDENTIAL 3 1- to 4FAMILY MULTIFAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 1967 - I II III IV 16.0 20.8 26.3 27.2 10.3 14.0 18.9 19.7 7.0 10.6 15.1 15.9 3.3 3.4 3.8 3.8 3.9 5.0 4.9 4.7 7.2 8.4 8.8 8.5 1.8 1.8 2.5 2.8 1968 - I II III IV 28.1 26.4 25.8 29.4 19.4 18.2 17.4 20.2 16.2 15.0 13.9 16.3 3.2 3.2 3.5 3.9 6.4 6.0 6.6 7.3 9.5 9.2 10.1 11.2 2.3 2.2 1.8 1.9 1969 - I II III IV 31.8 29.1 26.2 24.9 23.6 21.5 19.0 18.2 19.2 16.8 14.4 13.0 4.4 4.7. 4.7 5.3 6.1 5.4 5.4 5.2 10.5 10.1 10.0 10.5 2.2 2.2 1.7 1.4 1970 - Ir 6: III IV" 20.6 22.9 29.1 • 31.3 14.2 16.9 21.8 22.5 9.1 11.5 15.5 16.0 5.1 5.4 6.3 6.5 4.8 4.6 5.2 6.7 9.9 9.9 11.5 13.2 1.5 1.5 2.1 2.2 37.1 47.8 53.7 52.1 26.6 36.1 40.6 40.4 18.5 26.4 30.7 31.0 8.1 9.7 9.9 9.5 8„3 9.4 10.8 9.3^ 16.3 19.1 20.7 18.7 2.2 2.3 2.3 2.4 QUARTER 1971 - I II nip ivp 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. r Revision based on annual review of seasonal factors. TABLE 14: FNMA Weekly " A u c t i o n " Results ' WEEK ENDED Oct. Nov. Dec. Jan. Feb. COMMITMENTS IN $ MILLIONS IMPLICIT YIELD 2 (per cent) ACCEPTED 3-4 1-YEARH months TOTAL TOTAL 1-YEAR 1 663-4 OFFERED MONTH & OVER & OVER MONTH 3/ mo.3/ —— 4 18 365.1 219.8 194.8 103.6 194.£\ 103.6 1 15 29 126.0 145.3 210.6 56.4 102.0 101.1 56.4 102.0 101.1 13 27 232.5 222.7 70.2 148.1 70.2 148.1 10 24 136.9 103.6 72.9 54.9 72.!5 54.!9 — 7 88.7 63.9 — 63.9 --- --- -- — — -- — 7.85 7.83 -- 7.77 7.70 7.66 -- -- — -- -- -- 7.62 7.62 - 7.61 7.61 -- -- — .. —— -- -- — «* __ — 7.61 Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments. 1. For "proposed construction" of new homes only. 2. 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 38 basis points fee paid by investors to servicers. 3. Short-term commitments converted from a 3 to a 4 month basis beginning October 18, 1971. 19 TABLE 15: Private Housing Starts and Permits STARTS DATE 1970 - Oct. Nov. Dec. SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE TOTAL UNADJUSTED TYP E OF FINANCING FHA VA OTHER 1,583 1,693 2,054 140.9 126.9 121.4 40.4 33.7 63.2 890 934 1,240 693 759 814 5.8: 5.5 5.7 94.7 87.2 52.5 BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 1,523 1,487 1,768 - Jan. 1,725 • 946 779 110.6 32.3 4.6 1,635 73.7 Feb. 985 1,754 769 102.2 27.3 4.7 1,563 70.2 Mar. 1,959 1,048 911 167.9 33.5 6.9 127.6 1,627 Apr. 1,912 1,098 814 201.1 44.6 8.5 148.0 1,638 May 1,975 1,124 851 198.5 40.7 8.4 149.4 1,927 June 2,000 1,177 - 823 193.8 46.1 9.3 1,849 138.4 July 2,229 1,187 1,042 194.3 42.9 9.2 2,052 141.1 Aug. 2,258 1,212 1,046 204.5 45.8 9.4 2,006 147.0 Sept. 2,002 1,187 1,900 815 48.3 8.7 173.8 *116.6 Oct. r/ 2,031 1,159 872 179.7 38,5 8.1 133.1 2,173 115.9 2,303 1,283 Nov.r/ 1,020 172.2 47.2 9.1 1,952 2,517 1,411 Dec.2/ 1,106 149.6 56.8 2,231 85.4 7.4 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 pe mits reflect direct adjustment for differences in the number of working days per month, as well as other differences in timing and coverage. 20 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES DATE 30-year CONVENTIONAL MORTGAGES 3 1 SPREAD BETWEEN YIELDS ON CONV. & FHA MORTGAGES 5 NEW Aaa CORPORATE BONDS 4 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 6 8.62 7.99 8.35 7.55 -.13 -.40 8.75 6.91 1.08 -.13 1970 - High Low 9.29 8.40 8.60 8.30 -.10 -.74 9.11 7.80 .99 .01 1971 - High Low 7.97 7.32 - 7.95 7.55 .28 -.19 8.01 7.24 .50 -.36 7.80 7.85 7.85 -.17 -.07 .01 7.96 7.65 7.44 .01 .27 .40 7.80 7.75 7.70 .05 .13 .11 7.29 7.19 7.09 . 46 .43 .50 1969 - High Low 1971 - July Aug. Sept. Oct. Nov. Dec. 1 2 3 4 5 6 1 7.97 7.92 ' 7.84 7.75 7.62 7.59 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-fieId-office opinions 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 downpdyments, and weighted by probable volume of tansactions. Yields computed by FHA, assuming prepayment period of 15 years for 30-year mortgages. Based on FHA-fieId-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 rates less FHA secondary market yield. Yield spread equals FHA secondary market yield less new Aaa corporate bond yield. T A B L E 17: C o n v e n t i o n a l Mortgage T e r m s ' NEW HOMES EXISTING HOMES CON- FEES & 1 LOAN/ TRACT C H A R G E S EFFEC- | M A T U R I T Y ! P R I C E 1 LOAN DATE RATE (PER (PER CENT) CENT) 2 TIVE RATE 3 ! (YEARS) ! ; RATIO I AMT. (PER ($000) CENT) 4 k I CON- FEES & TRACT C H A R G E S EFFEC(PER RATE TIVE (PER CENT) CENT) RATE 2 3 LOAN / MATU- PR 1 CURITY RAT 10 (YEARS) (PER CENT) LOAN AMT. ($000) 4 1970 Dec. 8 .20 1 .07 8 .38 25 .8 73 .8 25.8 8,.12 0,,85 9.26 23,.3 71 .9 21.7 8,.03 7..74 7.,52 7,,37 7.,36 7.,38 7.,51 7.,60 7.,67 7.,68 7.,65 7. 63 0.,92 1.,00 0.,83 0.,73 0.,71 0.,74 0.,90 0.,84 0.,97 0. 97 0. 87 0. 94 8,,18 7.,91 7.,66 7,,49 7.,47 7.,50 7.,66 7.,74 7.,83 7.,84 7. 79 7. 78 25.,8 26.,2 25.,9 26.,3 26.,1 26.,3 26.,3 26.,2 25. 8 26. 4 26. 7 26. 6 73,.3 73,.9 73,,7 73.,6 74.,0 73.,7 74.,5 73,,9 75.,3 75.,5 75.,4 74. 6 26.4 26.2 26.0 26.2 26.7 27.2 27.1 26.5 25.9 26.3 27.3 26.5 7.,94 7.,67 7.,47 7.,34 7.,33 7.,38 7.,50 7. 58 7. 63 7. 62 7. 56 7. 51 0.,82 0..79 0..77 0..75 0.,71 0.,74 0.,75 0. 76 0. 78 0. 79 0. 79 0. 79 8.08 7.80 7.60 7.47 7.45 7.50 7.63 7.71 7.76 7.75 7.69 7.64 23.,5 24.,0 24.,1 24.,2 24.,0 24.,3 24.,2 24.,5 24. 2 24. 1 24. 3 24. 6 72.,5 73.,1 73,,5 73.,6 73.,2 73.,9 74.,5 74.,2 74.,5 74.,2 74. 6 74. 5 22.0 22.5 23.0 23.1 23.3 28.3 23.2 23.5 22.5 22.9 23.2 23.7 1971 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1 C o m p i l e d by F e d e r a l H o m e L o a n B a n k B o a r d in c o o p e r a t i o n with Federal Deposit Insurance Corporation. Data are w e i g h t e d a v e r a g e s based on p r o b a b i l i t y s a m p l e survey of charact e r i s t i c s of c o n v e n t i o n a l first m o r t g a g e s originated by m a j o r i n s t i t u t i o n a l lender groups (including m o r t g a g e c o m p a n i e s ) for p u r c h a s e of single family h o m e s . Data exclude loans for r e f i n a n c i n g , r e c o n d i t i o n i n g or m o d e r n i z a t i o n ; c o n s t r u c t i o n loans to h o m e - b u i l d e r s ; and p e r m a n e n t loans w h i c h are coupled with c o n s t r u c t i o n loans to ownerbuilders. R e l a t e d series on c o n v e n t i o n a l m o r t g a g e r a t e s only, based on unweighted o p i n i o n s of f i e l d - o f f i c e d i r e c t o r s of the F e d e r a l H o u s i n g A d m i n i s t r a t i o n , are a v a i l a b l e somewhat sooner than the results of the FHLBB-FDIC survey, and are i n c l u d e d - i n the case of n e w h o m e m o r t g a g e rates — in T a b l e 2 16. Fees and c h a r g e s - - e x p r e s s e d as a p e r c e n t a g e of the p r i n c i p a l m o r t g a g e a m o u n t - - i n c l u d e loan c o m m i s s i o n s , fees, d i s c o u n t s , and other c h a r g e s w h i c h p r o v i d e added income to the lender and are paid by the b o r r o w e r . T h e y exclude any c l o s i n g costs related solely to transfer of p r o p e r t y o w n e r s h i p . 3 Includes fees & c h a r g e s a m o r t i z e d over a 1 0 year period in a d d i t i o n to the contract interest rate. 4 Derived by FRB.
@FedFRASER