Full text of H.16 Capital Market Developments : February 22, 1972
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
DECONTROLLED AFTER SIX MONTHS GQtBEiiM. L 5.8 Confid»nlijrii(F R ) February 22, 1972 r%4. CAPITAL MARKET DEVELOPMENTS .g55=s5SStSS.« / INDEX 3-5 Developments 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 available T A B L E 1: Yields, Volume and Reception WEEK ENDING: 1972 - Jan. 7 14 21 28 Feb. 4 11 18 25 WEEK ENDING: • j 1972 - Jan. 7 14 21 28 Feb. 4 11 18 25 YIELDS MOODY'S SEASONED 1 NEW ISSUE 7.19 7.00 6.86 7.17 7.16 7.01 7.22 7.19 7.22 7.30 7.10 7.25 7.29 7.28 YIELDS MOODY'S BOND BUYER SEASONED 20 SEASONED BOND INDEX 5.03 4.75 4.65 4.99 4.90 5.17 5.29 5.05 5.10 5.00 5.00 5.35 5.27 5.24 CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 65 514 n. a. 599 76 n.a. 312 70 n.a. 332 75 n.a. 285 620 540 220e n.a. n.a. nr. a. MUNICIPAL BOND MARKET VOLUME2 PER CENT BONDS SCHEDULED GROSS SOLD BY END OF WEEK WITHIN 28 DAYS OFFERINGS 72 1,000 125 62 1,093 594 68 417 1,239 556 79 858 214 667 380 450e 87 84 80 1,098 1,080 1,504 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.) j 2 Millions of dollars unless otherwise indicated. ' 77 80e 68 Note: Sec footnotes to Table 3 T A B L E 2: Details on Inventories DATE " OFFERED j AMOUNT (MIL. S) | 2/16 2/15 2/15 2/2 50.0 75.0 175.0 20.0 CORPORATE BONDSIN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND YIELD CALL PROTECTION ISSUER COUPON 5 yrs A 7.50 7 5/8 Appal. Pwr Co 5 yrs Aaa 6.50 6 5/8 Pacific Tel & Tel Aaa 5 yrs 7.23 7 1/4 Pacific Tel & Tel 5 yrs A 7.65 7.65 Southeastern Tel ESTIMATED PROPORTION SOLD 90% 50% 60% 75% \ DATE OFFERED | RELEXSED CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT ISSUER COUPON YIELD IN YIELD CALL PROT. PORTION RELEASED NONE DATE 1972 - Jan. 21 28 Feb. 4 11 18 INVENTORIES 1 MUNICIPALS BLUE LIST | IN SYNDICATE 237 969 197 885 885 715r 781 96 147 134 CORPORATES IN SYNDICATE 94 121 123 147 133 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 which is daily average of three days ended Wednesday. All other figures are as of Friday. for FRASER Digitized T A B L E 3: DATE NEW CORPORATE Aaa 1 High Grade Bond Yields MOODY'S SEASONED CORPORATE Aaa 2 U.S. COVERNMENT 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) 1972 - Jan. 28 7.19 7.22 6.04 5.29 Feb. 4 11 18 7.22 7.30 7.10 7.25 7.29 7.28 6.09 6.10 6.05 5.35 5.27 5.24 1 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. 6 T A B L E 4: - Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS 1 STATE AND LOCAL 2 CORPORATE PERIOD 1972 1971 1970 3,350e 3,115 3,000 6,075 2,636 1,802 3,539 April May June 4,042 3,271 4,375 3,170 3,909 3,389 July August September 4,147 2,532 3,768 2,768 2,274 2,518 October November December 3,387 3,704 3,673 January February March 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1972 1971 1970 1,700e 2,732 1,851 2,258 1,340 1,214 1,555 1,891 2,167 2,013 1,647 996 1,085 1,989 1,903 2,098 1,348 1,359 1,758 2,777 4,182 3,980 1,728 2,264 2,068 1,924 1,748 2,190 12,190 11,688 10,447 10,764 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 34,325 45,089 18,445 27,005 38,944 12,912 18,902 24,962 7,837 12,302 18,164 ' I | 1 I j , j Securities and Exchange Commission estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. >* T A B L E 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 BONDS AND MEMO: PUBLICLY PRIVATELY PFD. ISSUES INCLUDED MFG. OFFERED PLACED STOCK FOREIGN | CONVERTIBLE GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS1 1970 - IV 11,938 7,827 1,421 2,690 226 737 3,169 3,406 1,,346 4,020 1971 - I II III IV 12,190 11,688 10,447 10,764 8,369 6,546 4,725 5,135 1,516 1,758 1,641 2,439 2,306 3,384 4,079 3,193 84 215 114 133 724 1,351 652 767 3,794 3,130 2,202 2,453 3,197 2,910 2.651 3,041 1,,606 896 2,,263 1;,053 3,594 4,753 3,331 4,164 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. 3,387 3,704 3,673 1,942 2,003 1,190 723 433 1,283 723 1,269 1,701 59 62 12 222 395 150 662 811 980 933 1,217 891 432 269 352 1,360 1,408 1,450 550 900 900 n.a. 500 1,760 240 1 2 2 J a n . e/ 3,560 1 Orln-1 I tinners arc i-xi ractiw, railroad and other transportation, real estate .iimI Nuance, and coiium-rc lu 1 and other. 2" "'I ''iv. Securities and Kxcltange Commlrh ion. Quarterly supplements are available. 770 1,740 ^ T A B L E b: ISSUER Large Long-term Public Security Issues for New Capital (Other than U.S. T r e a s u r y ) 1 TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY Jan. 31) 1972 thru Feb. 1972 COUPON OFFER- MOODY'S RATE OR RATING NET INTERING YIELD EST COST Corporate Pacific NW Bell Tel B.F. Saul Real Estate Inv. Tr G.E. 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 Mtg Inv Dean Witter & Co Pacific Tel & Tel Co Pacific Tel & Tel Southern Pacific Trans Co Northern Trust Co First Nat'l City Corp Globe-Union Inc. Appalachian Pwr Co Appalachian Pwr Co Akizona, Inc. Duke Pwr Va Pwr & Lt Notes Conv deb Notes Gen'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 Debs Notes Eq tr Cap notes Bonds Bonds Bonds Pref st Bonds Cm stk Pref 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 28.8 175.0 75.0 50.0 30.0 100.0 20.0 50.0 25.0 60.0 125.0 45.0 1979 1991 1979 2002 1997 —— 2002 —— 2002 . 1992 1979 *» «* 7.00 6-1/2 7.05 7.50 7.65 *"** 7-5/8 -- 7-1/2 7-7/8 7-1/8 —— 6.90 6.50 7.05 7.50 7.65 Aaa __ A A 1 __ 7.55 —— 7.40 7.95 7.125 — Aa —— Aaa — -—— 2002 7.67 1992 8.00 1979 . 7.00 1980 7.00 2002 .7-3/4 2002 7.25 1992 7-3/4 1979 7.00 1992 7.00 7.60 8.05 7.125 7.10 7.75 7.25 7.85 7.09 7.00 Aa 2008 1979 1987 1980 1979 1997 2002 Aaa Aaa Aa —— 7.30 6.62 7.38 6.75 6.25 7.85 7.56 —— —— 1997 7.50 7.23 6.50 7.42 6.81 6.71 7.85 7.50 — m* 7.50 -- -- «• —— — —— Aa —— «. — —— -—— Baa A —— A 00 T A B L E 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury)' AMOUNT (MILLIONS ISSUER OF DOLLARS) MATURITY Jan. 31. thru Feb. 18. 1972 COUPON RATE OR <HTI:RNET INTERI;.( EST COST YIELD 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. Denver Sch Dist Co Alexandria, La. Michigan New York State Dora 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. St. Paul, Minn. St. Paul, Minn. St. Paul, Minn. South Carolina 3.0. Rev. 2.0. Rev. 3.0. G.O. G.O. Rev. G.O. G.O. G.O. Rev. G.O. Rev. Rev. G.O. G.O. & Rev. G.O. Elec Rev Rev. Rev. G.O. G.O. G.O. G.O. & Ref. 22.8 15.9 8.4 25.0 12.0 10.0 15.0 19.7 60.0 21.7 29.8 13.0 70.0 29.2, 150.0 45.9 24.4 23.4 23.0 1973-2001 1973-1997 1973-1997 1973-1992 1973-1992 1973-2012 1973-1992 1973-2002 1973-1992 -- 1973-1991 1973-1996 1974-1998 1974-2003 2007 1972-1990 1973-1997 1973-1992 1973-1992 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 —— -- 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 Baa A A Aaa A Aaa Aaa 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 Aa A Aa 9.4 1972-2004 6.98 6.98 20.7 2.1 4.5 5.6 40.0 1972-2004 1975-2002 1973-1982 1973-1982 1973-1987 6.98 4.91 3.82 3.82 4.13 3.10-5.15 2.60-5.25 2.60-5.25 2.50-4.50 Aa A Aaa Aa Baa-1 A Aa —— Aa Aaa T A B L E 6:. L a r g e L o n g - t e r m P u b l i c S e c u r i t y I s s u e s for N e w C a p i t a l ( c o n t i n i u d) (Other than U.S. T r e a s u r y ) ' Jan, 31, thru Feb. 18, 1972 ISSUER TYPE 2 AMOUNT (MILLIONS OF MATURITY DOLLARS) COUPON RATE OR NET INTER- EST COST State and Local Brunswick & Glynn Co Dev Auth, Ga. Rev. Brunswick & Glynn Co Dev Auth, Ga. Rev. Huntington & Babylon, N.Y. C.S.D. G.O. Alabama Public School Coll. Auth G.O. Douglas Co. Neb., Hosp Auth G.O. Douglas Co., Nebo, Hosp Auth G.O. Gwinnett Co., Ga. Rev. Puerto Rico Highway Auth Rev. Puerto Rico Highway Auth Rev. Vermont Municipal Bd Bank G.O. 9.0 6.0 10.1 27.0 5.7 16.3 12.0 21.0 39.0 63.7 ! J j OITKR . MOODY'S i:.( RATING YIELD 1 1997 —— 5. 96 1978-1992 1972-1998 1986 1976-1986 2000 1974-2002 1973-1992 2002 1972-1991 -- 4,,25-5.75 2.,70-5.80 2., 80-4.75 4.,20-5.70 6,,25 3,,75-6.25 —— 4.56 -—— —-- -- 4.74 2,.90-5.,80 2,.50-5.,20 5.70 7.10 7.38 5,.70 5 .07 5 .80 -- -- A Aa — A A Aa Other Federal Land Banks FHLB FHLB Bonds Debs Debs 425.0 50.0 50.0 1975 1974 1976 Rights offering. Includes corporate and other security offerings of $15 million and State and local security offerings of $10 million and" over. In case of State and local government securities, G.O. denotes gene iI o h 1 i g a t '<ev. Vt. , revenue obligations secured on 1 y by income from public uti .1 i t Rev.-Q.-I t. , revenue bonds secured only by income from quas i - ut- i lit i e s ; Rev . revenue bonds secured by revenue from specific taxes only; Rev.-Kin t • ,r e v e n u bonds secured solely by lease payments. Includes foreign government and International Bank for Reconstruct i> Development issues and non-quiranteed issues by Federal Agencies. —— i on ; T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) ISSUER TYPE As AMOUNT (MILLIONS OF DOLLARS) o f % r u a r y If, 1 0 7 2 APPROXIMATE DATE OF OFFERING Corporate Minn. Pwr & Lt. Jim Walter Corp Northern States R*r Union Commerce Corp Citizens & Southern Corp Public Sus of Colo American Credit Corp Northern States Pwr Co Gen'l Tel of Wise Metropolitan Edison North Am Car Corp Texas Eastern Transmission Atico Mtg Investors Indianapolis Pwr & Lt. GMAC Toledo Edison NCNB Corp Chrysler Financial Consolidated Edison of N.Y. Duguesne Light Jersey Central Pwr & Lt San Diego Gas & Elect Public Svc of Okla. Kansas Gas & Elect Kansas Gas & Elect Columbia Gas System Duke Pwr New England Tel & Tel Co Instutional Investors Trust Mobil Oil Corp Pref st Bonds Bonds Bonds Conv deb Pref st Bonds Bonds 1st mtg Pref st Eq tr 1st mtg Debs Bonds Debs Cm st Debs Debs Debs Pref st Pref Pref Bonds Bonds Pref Bonds Bonds Notes Conv deb Debs 20.0 50.0 50.0 25.0 15.0 25.0 50.0 50.0 25.0 35.0 ' 15.0 60.0 25.0 40.0 200.0 18.0 30.0 60.0 150.0 35.0 25.0 15.0 30.0 25.0 15.0 50.0 100.0 100.0 30.0 300.0 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. March March March INDEF* 22 23 23 23 23 23 23 23 24 28 28 29 1 1 2 6 7 8 9 13 14 14 15 15 15 16 22 T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) As of February 18, 1972 APPROXIMATE DATE OF OFFERING State and Local Feb. 21 11.2 Islip Central S/D/ N.J. G.O. 23 10.0 Feb. Hartford Co. Metro Dist., Conn Rev. 23 Feb. New Jersey, State of 75.0 G.O. 23 61.0 Feb. Penna State Pub Sch Auth G.O. 14.0 Feb. 24 Northampton Co, Pa. Com Coll. G.O. 13.0 Feb. 24 Clark Co, Nev G.O. Feb. 24 175.0 New York State Housing G.O. Minneapolis St. Paul Metro Area 33.7 Feb. Rev. 28 Metro Council, Minn 100.0 Feb. 29 Metro Water Dist., So. Cal. Rev. 15.0 Feb. 29 Newark, N. J. G.O, 10.0 Feb. 29 Washington, State of G.O. 20.0 Feb. 29 Rev. Washington, State of 20.0 Feb. Rev. Mass House Finance Agency Mar. 1 52.2 Naasau Co, N.Y. G.O. 29.8 Mar. 1 Rev. Chester City Sch Auth, Pa 23.7 Mar. 2 Passaic Valley Swr Comm G.O. Mar. 3 22.0 Jefferson Co. Sch Dist G.O. 11.0 Mar. 5 New Orleans, La G.O. Dallas-Ft. Worth Reg Airport, 6 112.0 Mar. Rev. Texas 6 40.0 Mar. Texas, State of G.O. Mar. 12.8 7 G.O. Jersey City, N.J. 40.5 Mar. 7 G.O. Philadelphia Sch Dist, Pa Mar. 8 224.8 Bonds HAA 9 Mar. 12.0 Lubbock, Texas G.O. 14 35.0 Mar. G.O. Baltimore, Md Mar. 15 11.0 Bonds New Orleans, La. San Gabriel Valley Mun Dist, Mar. 15 17.5 Rev. Calif. 40.0 Mar. 15 Flee Rev Los Angeles DWAPS 16 46.0 Mar. G.O. Ohio, State of 16 50.0 Mar. Rev. University of Texas 28.0 Mar. 22 G.O. Sacramento MUD, Cal Mar. 22 10.0 Bonds Indianapolis, Ind Los %ngeles Co Flood Control Dist, Calif. April 1 27.0 G.O. 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. 13 Table 8 STOCK PRICES AND VOLUME STOCK PRICES1 NYSE INDEX 3 - DJ. INDUSTRIALS TRADING VOLUME d -AMEX 4 1969 - High Low 50.32 (5/14) 968.85 (5/14) 49.31 (7/29) 769.93 (12/17 32.91 (1/13) 25.02 (7/29) 16.5 (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 (12/29 631.16 (5/26) 27.02 (1/8) 19.36 (5/27) 18.5 (12/4) 7.8 (8/14) 7.1 (1/2) 1.8 (8/14) 1971 - High Low 57.76 (4/28) 950.82 (4/28) 48.73 (1/4) 797.97 (11/23 26.68 (4/28) 22.72 (1/4) 22.1 (2/12) 6.7 (2/12) 2.7 (8/13) 5.3 5.9 1972 - Jan. Feb. 11.0 (8/13) 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 4 11 18 58.26 58.33 58.48 906.68 917.59 917.52 27.38 27.47 27.57 19.9 19.1 18.6 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, 1969 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 6.1 6.1 7.1 6.3 6.0 » 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 25 u T A B L E 9: Security Credit END OF PERIOD C R E D I T E X T E N D E D TO M A R G I N C U S T O M E R S BY: BROKERS 1 | BANKS? | TOTAL jNET CKi;i)I iCUSTOMERS' : C U S T O M E R S ' NE T ' E X T E N D E D I |BROKERS A: | N E T DEBIT j FREE CREDIi j DEALERS BALANCES BALANCES Outstanding: 1970 - D e c . 4,030 2,330 6,360 (4) 2,286 (4) • 1971 - J a n . 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) 2,452 2,743 2,798 2,660 2,550 2,440 2,210 2,200 2,100 2,160 2,170 2,220 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) Chang e in Outstanding: 1970 - Dec. 1971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1 2 3 20 10 30 -- 89 -30 90 210 230 90 100 70 60 80 20 -40 490 -30 30 30 -20 -60 120 240 210 90 150 100 70 80 —— -- — — -50 530 -- 291 291 55 -138 -110 110 230 -10 100 60 10 50 -- 50 30 10 — -20 -10 40 -— — — — -- -— — — — ----— — !Margin d e b t , as reported by the N e w Y o r k Stock E x c h a n g e . A l t h o u g h m a r g i n debt u n t i l M a r c h 1968 included loans secured by U.S. g o v e r n m e n t s , the amount of such loans included is thought to have been small. "Bank loans to others than brokers and deale s for p u r c h a s i n g or carrying s.purities other than U.S. g o v e r n m e n t s . " T h e d i f f e r e n c e b e t w e e n c u s t o m e r s ' net debit b a l a n c e s and customers' not Lruv credit b a l a n c e s , this figure r e p r e s e n t s the net credit extended by b r o k e r s and d e a l e r s to the n o n f i n a n c i a l public. NOTE: W i t h the e x c e p t i o n of bank loan d a t a , figures are supplied by the N e w York Stock E x c h a n g e and are end of m o n t h data. B a n k loans a r e for weekly r e p o r t i n g large c o m m e r c i a l banks. B r o k e r data includes loans for regulated s e c u r i t i e s ; bank data includes loans for the p u r p o s e of p u r c h a s i n g or c a r r y i n g any security, w h e t h e r r e g u l a t e d o r not. S eries discontinued. FRASER C h a n g e s in s e r i e s . Digitized4for 5 T A B L E 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS REGULAR DEPOSITS 3 NET NEW ANNUAL 2 MONEY GROWTH NET FLOW RATE 1 SAVINGS & LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL NET MONEY2 GROWTH FLOW RATE 1 TOTAL DEPOSITS ANNUAL NET FLOW GROWTH RATE NET NEW MONEY 2 1 Not Seasonally Adjusted 1969 1970 1971 £ / 2,549 4,517 9,512 1970 ~ November December January 497 1,218 774 1971 . - November g/ December g/ 1972 - January 631 1,180 850 4.0 6.8 13.5 —— — — 1971 - July August September October November g/ December g/ 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 -763 936 5,663 4,068 10,965 28,251 388 376 637 1,087 2,773 2,609 512 310 n.a. -— -- -- 3.1 8.1 19.4 -1,003 5,295 20,664 6,617 15,482 37,763 1,044 1,161 2,476 1,584 3,991 3,383 — 1,562 1,484 -— 3,135 1,180 — 2,700 n.a. Seasonally Adjusted — 2,687 19. 9 — 1,529 11.2 — 2,125 . 15.4 —— 2,071 14.8 -1,710 12.1 2,052 14.3 — 2,193 4,315 3,550 3,316 2,068 2,808 2,670 2,369 2,859 16.7 10.3 13.8 13.0 11.4 13.3 3,552 4,494 21.2 *— — 24.5 -- 3.4 7.7 17.5 -—• —— —— -1,766 6,231 26,327 1,432 1,537 3,113 1,996 1,490 n • b. . —— -— --—— --- 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 lor 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 Ranks and Feder.il Home l.oan Hank Hoard. I T A B L E 11: Mortgage Commitments at Selected T h r i f t I n s t i t u t i o n s DATE 1970 1971 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. £/ Oct. Nov. 1 NET CHANGE OUTStAN DING_COMMITMENTS ALL MUTUAL ""ALL SAVINGS & SAVINGS SAVINGS & LOAN BANKS LOAN ASSOCIATIONS (N.Y. STATE) ASSOCIATIONS 1/ (Billions of Dollars, Se asonally Adjusted)— .35 .34 .01 2.0 .51 .28 .23 8.3 2.1 .25 .20 .05 8.9 2.3 2.5 9.6 7.8 10.1 8.1 10.4 11.2 12.6 13.8 15.3 16.1 16.3 16.4 16.4 16.3 16.6 Ml'Tl AL SAVINGS BANKS (N.Y. STATK) 10.1 U.l 12.2 13.0 13.2 13.3 13.2 13.1 13.2 1.8 2.8 3.1 3.1 3.1 3.1 3.2 3.2 3.'4 .80 .60 1.36 1.30 1.16 1.56 1.21 .77 .24 .07 .12 -.01 .01 1.01 .72 .28 .10 -.01 -.01 .00 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 outstandings levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. .20 .20 .29 .34 .05 .02 .03 .13 .00 .01 • 17 T A B L E 12: DATE 1968 1969 1970 1971 TOTAL INCLUDING FNMA-GNMA TOTAL Net Change in Mortgage Holdings 1 FINANCIAL INSTITUTIONS LIFE MUTUAL SAVINGS & COMMERCIAL INSURANCE SAVINGS LOAN BANKS COMPANIES BANKS ASSOC. Not Seasonally Adjusted FNMA-GNMA 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 n. a. 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 n. a. 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. 101 101 91 53 42 21 72 130 128 77 77 n.a. -10 -35 22 -56 40 201 308 512 466 390 302 n.a. / Seasonally Adjusted 1 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 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 18 TABLE 13: Net Increases in Mortgage Debt Outstanding Billions of dollars, SAAR ^ TOTAL RESIDENTIAL3 1- to 4FAMILY - 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 - I II III IV 28.1 26.4 25.8 29.4 19.4 18.2 17.4 20.2 - I II III IV 31.8 29.1 26.2 24.9 - I; tl: III iv- I II QUARTER nip B7p MULTIFAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 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 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 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 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 Derived from data on m o r t g a g e debt outstanding from Federal D e p o s i t Insurance C o r p o r a t i o n , Federal Home L o a n Bank Board, Institute of L i f e Insurance, National A s s o c i a t i o n of M u t u a l Savings B a n k s , Departments of C o m m e r c e and A g r i culture, Federal N a t i o n a l M o r t g a g e A s s o c i a t i o n , Federal H o u s i n g A d m i n i s t r a t i o n , Veterans A d m i n i s t r a t i o n and C o m p t r o l l e r of the C u r r e n c y . Separation of nonfarm m o r t g a g e debt by type of property, w h e r e not available, and i n t e r p o l a t i o n s and extrapolations, w h e r e required, estimated m a i n l y by Federal Reserve. M a y differ somewnat from related flow of funds series m a i n l y b e c a u s e of m o r e a g g r e g a t i v e type of seasonal adjustment. R e s i d e n t i a l m o r t g a g e debt includes nonfarm only and is sum of 1-to 4 - family and m u l t i f a m i l y m o r t g a g e debt combined. Revision based on annual review of seasonal factors. T A B L E 14: WEEK ENDED - Oct. Nov. Dec. - Jan. Feb. FNMA Weekly "Auction" Results COMMITMENTS IN $ MILLIONS IMPLICIT YIELD2(per cent) ACCEPTED 3-4 1-YEAR 1 1-YEARN months 6TOTAL 3-4 TOTAL 6& OVER OFFERED MONTH 3/ mo. 3/ MONTH & OVER 4 18 365.1 219.8 194.8 103.6 194.8 103.6 -— 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.:L — -- - __ 10 24 136.9 103.6 72.9 54.9 72.!9 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: U n d e r the FNMA a u c t i o n s y s t e m , ap proved sellers of G o v e r n m e n t u n d e r w r i t t e n m o r t g a g e s bid for FNMA forward p u r c h a s e c o m m i t m e n t s . 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. 20 T A B L E 15: Private Housing Starts and Permits STARTS SEASONALLY ADJUSTED ANNUAL RATE TOTAL|l-FAMILY 2 OR MORE 1,583 1,693 2,054 890 934 1,240 693 759 814 TOTAL UNADJUSTED TYPE OF FINANCING FHA VA OTHER 140.9 126.9 121.4 40.4 33.7 63.2 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 1970 Oct. Nov. Dec. 1971 110.6 Jan. 1,725 • 946 779 32.3 4.6 1,635 73.7 Feb. 769 102.2 985 1,754 27.3 4.7 1,563 70.2 1,959 1,048 911 167.9 Mar. 127.6 1,627 33.5 6.9 1,912 1,098 814 201.1 Apr. 44.6 8.5 148.0 1,638 May 851 1,975 1,124 198.5 40.7 8.4 149.4 1,927 June 823 2,000 1,177 193.8 46.1 9.3 1,849 138.4 July 1,042 194.3 2,052 2,229 1,187 42.9 9.2 141.1 1,046 204.5 Aug. 2,258 1,212 45.8 9.4 2,006 147.0 Sept. 1,900 8.15 48.3 8.7 2,002 1,187 173.8 116,8 Oct. r/ 872 2,031 1,159 38,5 8.1 179.7 133.1 2,173 115.9 1,020 2,3 03 1,283 172.2 Nov. r/ 47.2 9.1 1,952 1,106 2,517 1,411 Dec.g/ 149.6 2,231 56.8 85.4 7.4 Total starts are Census estimates including farm for both permit-issuing and noi.-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^jreported 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. 21 T A B L E 16: -Mortgage and Bond Yields DATE FHA MORTGAGES 30-year 2 | CONVEN- SPREAD BETWEEN YIELDS 1 TIONAL ON CONV. & MORTGAGES FHA MORT3 GAGES 5 1 NEW Aaa CORPORATE BONDS 4 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 6 1969 - High Low 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 1971 - July Aug. Sept. 7.97 7.92 7.84 7.80 7.85 7.85 -.17 -.07 .01 7.96 7.65 7.44 .01 .27 .40 7.75 7.62 7.59 7.80 7.75 7.70 .05 .13 .11 7.29 7.19 7.09 .46 .43 .50 Oct. Nov. Dec. 1 N e i t h e r m o r t g a g e n o r bond y i e l d s i n c l u d e a l l o w a n c e for s e r v i c i n g costs which are m u c h h i g h e r for m o r t g a g e s than for b o n d s . G e n e r a l l y , b o n d s pay interest semiannually; mortgages, monthly. M o r t g a g e y i e l d s , if computed as equivalent to a s e m i - a n n u a l i n t e r e s t i n v e s t m e n t , would be slightly higher than given in the table. 2 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. 3 Based on FHA-fieId-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring Office cities. 4 Se£ note for Table 1. 5 Yield spread equals conventional mortgage rates less FHA secondary market yield. 6 Yield spread equals FHA secondary market yield less new Aaa corporate bond yield. ' 22 TABLE 17: Conventional Mortgage Terms NEW HOMES CON- FEES & TRACT CHARGES RATE (PER CENT) EFFEC- MATURITY (YEARS) TIVE (PER C E N T ) RATE 3 2 1 EXISTING HOMES LOAN/ PRICE RATIO (PER CENT) LOAN AMT. LOAN/ I ! LOANI AMT. (S000) CENT) 4 EFFEC- MATU PR inRITY RATIO TIVE CENT) RATE (YEARS) (PER TRACT CHARGES 0.82 8.08 0.79 0.77 0.75 0.71 0.74 0.75 0.76 0.78 0.79 0.79 0.78 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 0.76 7.59 24.5 ($000) 1971 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1972 8.03 7.74 7.52 7.37 7.36 0.92 1.00 8.18 7.38 7.51 7.60 7.67 7.68 7.65 7.62 0.83 0.73 0.71 0.74 0.90 0.84 0.97 0.97 0.87 0.93 7.91 7.66 7.49 7.47 7.50 7.66 7.74 7.83 7.84 7.79 7.77 7.62 0.91 7.77 25.8 26.6 73.3 73.9 73.7 73.6 74.0 73.7 74.5 73.9 75.3 75.5 75.4 74.5 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 26.5 75.3 27.8 7.46 26.2 25.9 26.3 26.1 26.3 26.3 26.2 25.8 26.4 26.7 26.4 26.2 26.0 26.2 72.5 73.1 73.5 73.6 73.2 73.9 74.5 74.2 74.5 74.2 74.6 74.6 74.6 Compiled by Federal Home L o a n 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 owner builders. 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. 3 Includes fees & charges amortized over a 10 year period in addition to the contract interest rate. 4 Derived by FRB. 22.0 22.5 23.0 23.1 23.3 28.3 23.2 23.5 22.5 22.9 23.2 23.9 23.8
@FedFRASER