Full text of H.16 Capital Market Developments : February 5, 1973
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
DECONTROLLED AFTER SIX MONTHS 7( ^-r' GO'—:m L.5.8 Confidential (F.R.) February 5 , CAPITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. 1973 INDEX Developments in the Corporate and Municipal Bond Markets Capital Market Yields Capital Market Volume Stock Market Mortgage Market SYMBOLS: e Estimate p Preliminary r Revised n.a. Not available TABLE 1: Yields, Volume and Reception YIELDS MOODY'S NEW ISSUE Aaa SEASONED 1 UTILITY Aaa WEEK ENDING: 1973 - Jan. 5 12 19 26 Feb. 2 9 7.29 7.45 7.40p 7.11 7.12 7.15 7.18 34 373 248 176 7.36 7.20 179 240e —— YIELDS BOND BUYER MOODY'S SEASONED 20 SEASONED BOND INDEX WEEK ENDING: CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 100 80 94 81 n.a. n.a. n.a. n.a. 99 n.a. MUNICIPAL BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END OF WEEK OFFERINGS BONDS SCHEDULED WITHIN 28 DAYS 1973 - Jan. 5 12 19 26 4.95 4.90 4.85 4.90 5.08 5.03 5.00 5.08 52 467 467 364 55 80 75 54 963_. . 942 802 929 Feb. 2 9 5.00 5.16 451 467 e 83 575 n.a. 1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial and convertible issues, offerings of natural gas pipeline and foreign companies, and bonds guaranteed by the Federal Government.) 2 Millions of dollars unless otherwise indicated. Note: Sec- footnotes to Table 3 TABLE 2: Details on Inventories AMOUNT (MIL. $) DATE OFFERED 2/1 A A 5 yrs 5 yrs 75% 60% AMOUNT Northern States Pwr 50.0 INVENTORIES 1 MUNICIPALS BLUE LIST 1 IN SYNDICATE DATE 1973 - Jan. 7.20 7.37 ESTIMATED PROPORTION SOLD CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER COUPON IN''YIELD CALL PROT. PORTION RELEASED YIELD DATE I RELEXSED 1/24 7 3/8 7 1/2 Fall River Texas P & L 5.0 50.0 2/1 1/30 OFFERED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND ISSUER COUPON YIELD CALL PROTECTION 5 12 19 26 2 7.50 7.44 Aa +4 5 yrs 50% CORPORATES IN SYNDICATE 825 805 805 821r 142 150 193 356 19 37 16 35 866 157 21 N.C. - No call protection. 1 All figures in millions of dollars. Blue List is daily average for week ended Friday,exevpt for Litest vvuk vhich if daily average of three days endvd Wednesday. All other figures arc as of Friday. TABLE 3: High Grade Bond Yields NEW CORPORATE Aaa 1 DATE MOODY'S SEASONED CORPORATE Aaa 2 1970 - High Low 9.43 (6/19) 7. 72 (12/11) 8. 60 (7/3) 7.48 (12/21) 1971 - High Low 8. 26 (7/30) 7.,02 (2/5) 1972 - High Low 7..60 (4/21) 6,,99 (11/24) 1973 - Jan. Feb. U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS 4 7.55 (5/29) 6. 17 (12/18) 7. 12 (5/29) 5. 33 (12/11) 7. 71 (8/12) 7.,06 (2/12) 6.,51 (6/18) 5.,69 (3/23) 6. 23 (6/23) 4. 97 (10/21) 1.,36 (4/28) 7.,05 (12/8) 6.,19 (4/14) 5.,74 (11/17) 5. 54 (4/13) 4. 96 (10/21) . 5 12 19 26 7,.29 7,.45 7,.40 7.,11 7,.12 7..15 7,.18 6.,42 6,,85 6,,86 6,,87 5.,08 5.,03 5,,00 5,.08 2 7,.36 7,.20 6.,88 5.,16 -- n 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 1 "i PERIOD STATE AND LOCAL 2 1972 1971 1970 January February March 3,205 3,369 3,229 3 ,115 3 ,000 6 ,075 2 \ 636 1 ,802 3 ,539 April May 3,275 3,598 4,341 4 ,042 3 ,300 4 ,375 3 ,170 3 ,909 3 ,389 July August September 3,582 2,893 2,720 4 ,147 2 ,532 3 ,768 October November December 3,809 3,252e 2,650e 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1 2 1972 1971 1970 i 1 1 ,776 2 ,002 2 ,237 2 ,732 1 ,851 2 ,258 1 ,340 1 ,214 1 ,555 1 i 1 ,988 2 ,002 2 ,260 1 ,891 2 ,167 2 ,013 1 ,647 996 1 ,085 2 ,768 2 ,274 3;,518 1:,800 1:,951 1;,693 1 ,989 1 ,903 2 ,098 1 ,348 1 ,359 1 ,758 3.,387 3.,704 3.,673 3.,777 4.,182 3 3,980 2• ,155 1,,838 1,,755e 1.,728 2.,264 2a,068 1.,924 1.,748 2,,190 9,803 11,214 9,195 9,711e 12,,190 11,,688 10,,447 10, 764 7,,977 10,,468 8,,560 11, 939 6,,015 6,,250 5,,444 5, 748e 6,,841 6,,081 5,,990 6, 060 4,,109 3,,728 4,,465 5,,862 21,017 30,212 39,923 23, 844 34, 325 45, 089 18, 445 27, 005 38, 944 12, 265 17, 709 | 23, 457e 12, 812 18, 902 24, 962 7, 837 12,302 18, 164 1 Securities and Exchange Commission estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. : TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) ( VARTER OR MONTH TOTAL GROSS PROCEEDS BY GROSS PROCEEDS BY TYPE OF ISSUER TYPE OF ISSUE COMMON COMMUNIAND MEMO: BONDS PUBLIC ISSUES INCLUDED PUBLICLY PRIVATELY PFD. CATIONS UTILITY MFG. FOREIGN 1 CONVERTIBLE OFFERED PLACED STOCK 1,,053 2 ,543 3,041 3,193 133 767 2,439 5,135 OTHER ISSUERS 1 4,164 1971 - IV 10,764 1972= - I II III IVe/ 9,805 11,214 9,195 9,711 5,361 4,634 4,192 4,084 1,593 2,781 , 1,867 2,458 2,851 3,798 3,136 3,182 74 245 57 n.a. 511 449 836 352 1 ,525 2 ,109 1 ,629 1 ,045 2,261 3,495 2,680 2,874 1 ,476 = 1.,369 856 1,,047 4,541 4,240 4,030 4,745 Nov. Dec. 3,704 3,673 2,003 1,190 433 1,283 1,269 1,201 62 12 395 150 811 980 1,217 891 269 352 1,408 1,450 1972 - Jan. Feb. Mar. 3,205 3,369 3,229 1,767 1,907 1,677 834 1,041 976 59 12 3 195 83 233 392 529 604 533 988 740 752 498 227 1,529 1,354 1,658 Apr. May June 3,275 3,598 4,341 1,622 1,676 1,336 789 744 1,218 864 1,148 1,786 15 100 130 92 226 131 581 761 767 1,219 738 1,538 178 391 800 1,297 1,708 1,235 July Aug. Sept. 3,582 2,893 2,720 1,807 1,523 863 657 421 789 1,118 948 1,070 3 17 37 450 183 203 574 452 603 798 635 1,247 586 237 33 1,624 1,568 838 Oct. Nov. Dec. 3,809 3,252 2,650 1,763 1,361 950 593 865 1,000 1,453 1,029 700 84 120 n.a. 162 161 40 356 389 300 1,332 792 750 371 651 25 1,749 1,421 1,575 1 604 412 577, 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. T A B L E 6: Large Long term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 J a n u a r y 1 through February 2, ISSUER TYPE 2 Corporate U n i o n T a n k Car Public Svc of Indiana Penn Pwr & Lt F l a Pwr Lt Duke Pwr C e n t r a l Pwr & Lt M o n t a n a Pwr I n t e r n a t i o n a l Harvester Credit B o r g - W a r n e r A c c e p t a n c e Corp B o r g - W a r n e r A c c e p t a n c e Corp C o n t i n e n t a l Tel Co of C a l i f C e n t r a l H u d s o n Gas & Elec Corp G e n 1 1 A u t o , Inc. J o h n D e e r e Credit Co. N o r t h e r n Indiana Pub Serv Co. M a i n e Yankee Atomic Power Detroit Edison B r o w n G r o u p , Inc. P a n Am World Airways V e r m o n t Yankee Nuclear P o w e r G T E of M i d w e s t V e r m o n t Yankee Nuclear Power H y s t e r Co. Peoples Gas Co. Cincinnati G & E N e w Y o r k State Elect & Gas S a n t a F e International Corp P h i l a d e l p h i a Elect N o r t h e r n States Pwr C B T Corp E t h e n A l l e n , Inc. G u l f M t g e & Realty Trust Texas Power & Light Chase Manhattan Mortgage & R e a l Trust AMOUNT (MILLIONS OF DOLLARS) Bonds 21.0 Pref stk 20.0 1st m t g bd 80.0 1st mtg bd 70.0 Cm 75.0 Pref 26.0 S.F. debs 25.0 Debs 75.0 Sub debs 12.5 Sr Debs 25.0 1st m t g bd 10.0 tk 12.0 Cum prf Com stk 12.0 Debs> 75.0 Com stk 26.3 15.0 1st mtge 100.0 1st & Ref 40.0 Debs Conv debs 75.0 1st mtge 20.0 13.0 1st mtge 25.3 Preferred 15.5 Com stk o 52.3 C o m stk . 42.5 Com stk C o m stk Com stk 1st m t g 1st m t g Debs Conv debs Notes 1st m t g Notes | | COUPON RATE OR • >FFKRM A T U R I T Y NET INTERi;.c EST COST J YIELD 1993 2003 2003 7.40 7.15 7.49 7.47 -- —— -- i, J 7.47 7.15 7.43 7.42 -w ** -- —— «. — 1998 1994 1993 1993 1997 7.50 7.50 7.80 7.50 7.63 7.46 7.55 7.83 7.52 7.63 -— -- , / MOODY'S RATING A Aa Aa . A —— —— Baa —— 1998 7.50 2002 2003 1998 1998 1998 7.5/8 7.50 7 3/8 7 1/2 7.70 7 5/8 7.48 . __ — -- ' 7.54 —— . . 7.55 7.47 7.38 7.50 7.58 7.63 7.38 A Aa A B A A — -- — — -- — -- -- — 25.0 22.0 100.0 50.0 25.0 1999 2003 1998 7.50 7 1/2 7 5/8 7.50 7.44 7.72 20.0 20.0 50.0 1978 1981 2003 4 7/8 7.70 7 1/2 4.88 7.70 7.37 Aaa 60.0 1983 7 1/2 7.57 -- __ —~ Aa Aa 1973 / T A B L E 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury)' ISSUER State arid L o c a l ' TYPE ' AMOUNT (MILLIONS OF DOLLARS) COUPON R A T E OR N E T INTEREST COST January 1 t h n W e b . tM'l-KRi ;.c YIELD MOODY'S RATING N o issues w e e k of J a n u a r y 1, 1973 Dover, Del Rev. Wisconsin G.O. N e w Y o r k S t a t e Dorm. A u t h Rev. S t a m f o r d , Conn. G.O. Hawaii G.O. Washington G.O. Salt R i v e r Project, A r i z . Rev. Salt R i v e r Project, A r i z . Rev. Penna, S t a t e of G.O. W a s h i n g t o n , State of G.O. Dallas-Fort Worth Regional Airport-Tex Rev. Billings, Mont. Rev. D a l l a s Co., Texas G.O. S a n A n t o n i o , Texas Rev. Rev. Kansas City Mo. D e l a w a r e , State of G.O. Los A n g e l e s D e p t , A i r p o r t , Calif. Rev-•ref _Bonds N e w Y o r k State L o u i s i a n a , S t a t e of California Alaska A l b a n y , N.Y. H a m p t o n Rds Sanitation D i s t , Va. G.O. G.O. G.O. End bd Swr Rev 23.6 37.0 31.0 17.9 55.0 10.0 33.7 41.3 25.0 10.0 1974-2008 1974-1993 1974-2003 1974-1993 1976-1993. 1974-2003 1976-1998 2010 1975-2002 1974-2003 13.3 18.0 37.6 35.0 15.0 25.0 51.4 129.5 31.5 30.0 20.0 12.9 25.0 1974-2002 1977-2002 1974-1993 1974-1994 1974-2001 1974-1993 1979-2000 1974-2003 1974-1983 1974-1993 1976-1998 1973-1980 1974-2003 -- 4.57 5.32 4.58 4.75 4.85 —— 5.17 4.91 4.85 5.08 4.55 4.76 5.14 4.49 5.10 4.60 4.86 4.65 5.12 5.14 3.40-5.38 3.10-5.10 3.50-5.40 3.20-5.00 3.70-5.30 3.10-5.20 3.75-5.20 5.34 3.40-5.35 3.10-5.20 4.00-5.90 3.90-5.40 3.00-5.25 3.00-4.90 3.25-5.15 3.10-5.35 4.20-5.25 2L00-4. 90&5. 4 0 3.30-5.05 3.25-4.90 3.90-5.35 3.30-4.25 3.40-5.35 A Aa A —— A Aa A-l A-l __ Aa Baa-1 Aa A A A Aa A-l Aaa Baa-1 A A ' 2, 1973 T A B L E b: Large Lony-tcrm Public Security Issues for New Capital (continm ii) (Other than U.S. Treasury) 1 Jan. 1 thru Feb. ! ISSUER State and L o c a l G a r l a n d , Texas G r a y ' s Harbor C o . Pub U t i l . D i s t . #1, W a s h Puerto- R i c o Highway A u t h Puerto R i c o Highway A u t h A r l i n g t o n Co., V i r g i n i a N . Y . C . Housing Dev Corp Chicago Park Dist, 111 O r e g o n , State of J e f f e r s o n Co., Kentucky TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY Rev. 10.5 1973-1996 Elec rev. Rev. Rev. G.O. G.O. G.O. G.O. Poll cont. 12.8 45.0 20.0 17.0 52.0 20.0 75.0 2003 1974-1993 1975-1994 1973-2022 1974-1992 1988-1991 2, 1973 COUPON I R A T E OR OFFLR MOODY'S NET INTERi;.r, RATING EST COST YIELD ] -3.,10-5. 25 A ; • *• — -- -- —w -- 4.61 5.63 4.74 4.87 " e ' 3,.40-5.,40 3,.30-5.40 3,.50-5,,65 3 .50-5.,00 4,.70-5,,00 —— 15.3 1998 5.50 T o l e d o , O h i o City S/D 20.0 G.O. 1974-1993 4.57 3 .20-5,.00 —— D a y t o n , Ohio M t g rev 5.7 1976-1986 4 .25-5,.50 D a y t o n , Ohio M t g rev 18.8 —— 2005 6.00 -D a y t o n , Ohio M t g rev 9.0 1995 5.90 W a s h i n g t o n M e t r o A r e a Trans A u t h Bonds 220.0 2012 7.38 7.38 F a y e t t e Co., W & % t V i r g i n i a Rev. 22.0 1998 H o u s t o n , TexaS 11.6 G.O. 1974-1993 4.62 3. 25-5. 35 C l a r k Co. Sch Dist, NEV Bonds 13.5 1974-1988 5.33 3. 50-5. 30 D e c a t u r Sch Dist # 61, 111 G.O. 11.8 1975-1993 . 4.87 3,,15-5. 00 I l l i n o i s , State of G.O. 150.0 1974-1998 4.76 3.,30-5. 00 A l l e g h e n y Co., Pa G.O. 47.0 1974-2003 5.10 . 4.83 N e w Jersev M t e F i n Agencv 32.0 1974-1983 Rev. * Rights offering. 1 Includes corporate and other security offerings of $15 million and over; State and local security offerings of $10. million and over. 2 In case of State and local government securities, G . O . denotes genera1 obligation; Kev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by lease payments. 3 Includes foreign government and International* Bank for Reconstruction and Development issues and rion-quaranteed issues by Federal Agencies. <•' , A-l A*" A ^Aa Aa A-l Aa Aa Baa Baa Baa — *• Aa Aa Baa-1 A A-l 11 TABLE 7: Forthcoming Large Long-term Public Security Offerings for Now Capital (Other than U.S. Treasury) 1 (continued) ISSUER Commonwealth Edison Houston Lighting & Power Federal-Mogul Corp Mississippi Power & Light Institutional Investors Trust Tri-South Mtg Investors Public Svc of Colorado Idaho Power Chesapeake & Potomac Tel of Va Realty Fund Trust Con Edison Whittaker Corp Central & Southwest Corp Gen Tel Co of Calif Excel Investment Corp Riviana Foods Inc *Ohio Edison Jersey Central Power & Light *Texas Eastern Transmission *Petrolane Inc. *First Wisconsin Mort Inv Continental Illinois Corp Walter Kidde & Co TYPE Debs Com stk Bonds 1st mtg Bonds Debs Com stk Com stk Bondw Conv deb 1st mtg Bonds Com stk Com stk Com stk Com stk Pref stk Bonds Com stk Com stk Bene Int Bonds Debs AMOUNT (MILLIONS OF DOLLARS) 100.0 75.0 30.0 30.0 20.0 25.0 30.0 27.0 50.0 15.0 150.0 25.0 50.0 50.0 20.0 15.5 35.0 30.0 84.0 35.4 26.3 100.0 65.0 1973 APPROXIMATE DATE OF OFFERING February February February February February February February February February February February February February February February February March March March March March INDEF INDEF 5 6 6 6 6 7 8 13 13 13 14 14 27 28 6 8 12 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 ISSUER State and Local TYPE Pima Co., Ariz. G.O. G.O. Lapeer Pub. S/D Mich G.O. Dallas Co. Jr. Coll Dist, Tex Minuteman Reg. Vac.- Tech S/D. Mass. G.O. New York State Housing Fin. Agency G.O. Rev. Los Angeles DWAP G.O. Miami Beach, Fla. Cleveland Heights - Univ Height s G.O. S/D, Ohio Chula Vista Comm Hosp, Cal. ,G.O. *Columbus, Ohio G.0. G.O. High Point, N. C. ^Detroit G.O. Columbus City S/D, Ohio G.O. *Raleigh, N. C. G.O. Rev. *North Texas University *Albany, N. YG.O. New York City G.O. Maryland, State G.O. * 1 2 AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING 10.7 12.5 30.0 Feb. Feb. Feb. 6 6 6 12.5 Feb. 7 178.7 50.0 13.5 Feb. Feb. Feb. 7 7 7 10.0 10.9 14.1 11.2 19.0 30.0 15.0 15.0 12.9 80.0 100.0 Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Mar. Mar. 7 8 9 13 14 15 20 26 31 7 7 Included in table for first time. Includes corporate and other issues of 315 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. Table 8 STOCK PRICES AND VOLUME STOCK PRICES1' TRADMG VOLUME 2 ' DATE NYSE INDEX 3 ' DJ. INDUSTRIALS AMEX < NYSE AMEX 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) 1971 - High Low 57.76 (4/28) 48.73 (1/4) 950.82 (4/28) 26.68 (4/28) 797.97(11/23) 22.72 (1/4) 22.1 (2/12) 11.0 (9/17) 6.7 (2/5) 2.7 (8/13) 1972 - High Low 65.14 (12/11) 1036.27(12/11) 28.53 (4/14) 56.23 (1/3) 889.30 (1/3) 25.61 (1/3) 21.8 (11/10) 11.2 (9/8) 7.4 (3/10) 2.6 (9/8) 1973 - Jan. 5 12 19 26 65.22 64.95 64.51 63.05 1047.49 1039.36 1026.19 1003.54 26.68 26.51 26.31 26.09 19.3 20.4 18.6 19.2 4.0 4.8 3.8 3.9 Feb. 2 61.79 980.81 25.60 16.6 3.7 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, 1969 July 7, 1969 \ January 2, 1 9 7 0 V - 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 u TABLE 9: Security Credit END OF PERIOE Outstanding: 1971 - Oct. Nov. Dec. CREDIT EXTENDEE TO MARGIN CUSTOMERS BY: BROKERS 1 | RANKS 2 I TOTAL 4,950 4,910 5,400 2 ,410 2 ,400 2 ,440 7,360 7,310 7,840 1972 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Outstanding Changes 1972 - Oct. Nov. ; Dec. 5,700 6,180 6,620 7,010 7,200 7,510 7,660 7,780 7,800 7,800 2 ,490 2 ,510 2 520 2 530 2.,560 2.,650 2,,690 2,,780 2,,830 2, 850 8,190 8,690 9,140 9,540 9,760 10,160 10,350 10,560 10,630 10,650 20 -40 490 -20 -10 40 -50 530 1972 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 300 480 440 390 190 310 150 120 20 lo 20 10 10 30 90 50 90 50 20 350 500 450 400 220 400 200 210 70 20 1 2 3 — CUSTOMERS' NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY FREE CREDIT BROKERS AND DEALERS 3 BALANCES (4) ' (4) (4) 2,160 2,170 2,220 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 2,488 2,542 2,512 2,459 2,330 2,231 2,245 2,117 2,056 2,097 -__ —— 268 54 '-30 -53 -129 -99 14 -128 -61 -41 , — — — — -— — (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 60 10 50 — — — . ^ -— —— —— -- -- 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 securities other than U.S. governments." The . dit difference balances, between this customers' figure net represents debit the net balances credit and customers' net extended by brokers free cre- 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. Series discontinued 4 TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS REGULAR DEPOSITS 3 NET NEW ANNUAL MONEY 2 GROWTH NET RATE 1 FLOW SAVINGS & LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL MONEY 2 NET GROWTH FLOW RATE 1 TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW NET NEW MONEY 2 Not Seasonally Adjusted 4.0 6.8 13.5 12.0 1969 1970 1971 1972e/ 2,549 4,517 9,621 9,764 1971 - October November December 372 631 1,209 — 1972 - October November yj December e/ 469 625 1,200 —— — -- — ' — -763 936 5,678 5,378 4,068 10,965 28,230 32,692 3.1 8.1 19.3 18.7 224 512 325 1,600 1,562 3,114 —— 292 500 275 2,046 1,868 3,200 -- —- --- 3.4 7.7 17.5 16.6 -1,003 5,285 20,653 23,911 6,617 15,482 37,851 42,456 1,504 1,484 1,168 1,972 2,193 4,323 —— 1,886 1,720 1,200 2,515 2,493 4,400 — -— -1,766 6,231 26,331 29,289 1,728 1,996 1,493 2,178 2,220 1,475 1 1 Seasonally Adjusted July August September October November g/ December e/ 1 2 3 897 779 . 792 939 779 720 769 12.6 10.9 10.9 12.8 10.5 9.7 10.2 — — -- 2,844 3,076 2,706 2,930 2,706 2,237 1,948 18.1 19.3 16.7 17.8 16.2 13.2 11.4 —— — --— 3,741 3,855 3,498 3,869 3,485 2,957 2,717 16.4 16,7 14.9 16.3 14.5 12.1 11.1 --— — -- 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. Digitized I for FRASER — T A B L E 11: Mortgage Commitments at Selected Thrift Institutions DATE TOTAL OUTSTANDING C O M M I T M E N T S ALL MUTUAL SAVINGS SAVINGS & BANKS LOAN (N.Y. STATE) ASSOCIATIONS | 1 TOTAL 1 NET C H A N G E ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollar 3, Seasonally A d j u s t e d ) r / Nov. Dec. -Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. l 16.6 16.6 13.2 13.1 3.4 3.6 .20 .09 08 -.06 .12 .15 17.2 18.5 19.6 20.5 21.6 21.3 22.7 22.3 23.4 23.2 23.5 23.3 13.4 14.4 15.3 16.0 17.0 16.8 17.1 17/8 18.7 18.5 18.8 18.6 3.8 4.1 4.3 4.5 4.6 4.5 4.6 4.5 4.7 4.7 4.7 4.7 .23 ^ 1.36 1.13 .89 1.04 -.26 .38 .71 1.06 -.36 .38 -.19 .12 r.oi .93 .69 .96 -.18 .30 .76 .89 -.25 .34 -.20 .11 .35 .20 .20 .08 -.08 .08 -.05 .17 -.11 .04 .01 Based on data from Federal H o m e L o a n B a n k Board and Savings "Banks Associations of New York State. D a t a for savings banks and S&L'a include a m i n o r amount of nonresidential commitments. S&L c o m m i t m e n t s i n c l u d e loans in process. Net changes are d e r i v e d d i r e c t l y from unrounded o u t s t a n d i n g s levels as reported and after s e a s o n a l a d j u s t m e n t by F e d e r a l R e s e r v e . S u b t o t a l s may not add to totals because of r o u n d i n g . 17 TABLE 12: Net Change in Mortgage Holdings I TOTAL L INCLUDING FNMA-GNMA 1 FINANCIAL INSTITUTIONS MUTUAL SAVINGS &| LIFE LOAN INSURANCE SAVINGS TOTAL I COMMERCIAL ASSOC. COMPANIES BANKS BANKS Not Seasonally Adjusted 21,273 19,699 16,827 39,259 6,677 5,404 2,462 9,940 1972 - May June July Aug. Sept. Oct. Nov. Dec. 4,958 5,724 4,872 5,931 5,286 4,779 5,114 4,674 5,692 4,717 5,563 4,918 4,684 4,984 1,500 1,400 1,400 1,500 1971 - Nov. Dec. 3,847 4,371 3,558 4,118 862 909 468 524 1972 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 3,456 3,828 4,464 4,363 4,908 5,176 4,849 5,471 4,748 4,714 5,282 3,250 3,550 4,329 4,327 4,521 5,060 4,593 5,179 4,714 4,738 > 5,212 1,112 1,178 1,264 1,361 1,434 1,489 1,451 1,477 1,155 1,393 1,524 1,164 290 315 464 400 453 516 472 515 537 484 513 n.a. 1,600 1,500 1,600 1,000 2,459 2,052 2,348 1,221 2 ,508 4 ,375 4 ,909 2 ,388 24 54 79 97 90 139 255 284 37 164 368 137 95 130 132 2,,101 2,,367 80 365 289 253 1,,871 -23 -18 5 85 67 96 101 79 111 135 299 206 278 135 36 387 116 147 292 34 - 24 70 96 9.,350 9.,561 10:,172 24.,160 2,787 2,682 1,845 3,938 23,781 24,074 21,736 41,647 1968 1969 1970 1971 2.,720 3.,453 2.,758 3.,313 2,,926 2,,673 2 ,712 3 ,101 Seasonally Adjusted (r) £54 585 438 553 502 472 517 2,,075 2,,596 1 2, 481 2, 567 2,,959 2, 678 3, 108 2, 911 2, 726 2,876 3,,130 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 1967. Beginning January 1972 data reflect activity in limited amount of conventional mortgages. 18 T A B L E 13: Net Increases in Mortgage Debt Outstanding Billions of dollars, SAAR TOTAL RESIDENTIAL3 1- to 4FAMILY 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 2.2 10.5 1.4 1970 - I II 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 1971 - I II III IV 37.1 47.8 53.6 53.4 26.6 36.1 40.1 40.1 18.5 26.4 31.4 31.4 8.1 9.7 8.7 8.7 8.3 9.4 11.2 10.8 16.3 19.1 19.9 19.5 2.2 2.3 2.3 2.5 1972 - I 61.2 64.9 66.2 43.9 47.3 48.4 34.3 37.4 38.0 9.6 9.9 10.4 14.8 14.9 14.9 24.4 24.8 25.3 2.6 2.6 2.9 QUARTER II Ille MULTIFAMILY COMMERCIAL • K oniy and is - °f . MULTI-AND COMMERCIAL «- FARM 2.2 1. 7 TABLE 14: FNMA Weekly " A u c t i o n " Results IMPLICIT YIELDZ(per cent)' COMMITMENTS IN $ MILLIONS ACCEPTED 1-YEAR 1 1 -YEARN 906906TOTAL TOTAL & OVER MONTH DAY MONTH & OVER DAY OFFERED WEEK ENDED 1972 - July 24 123.9 113.0 113.0 7.62 Aug. 7 21 106.2 81.7 87.2 81.7 87.2 7.63 7.62 5 220.6 295.9 151.2 148.1 151.2 148.1 7.63 7.65 352.8 271.2 186.4 211.5 224.9 162.7 211.5 224.9 162.7 7.69 7.72 7.72 78.7 49.2 36.2 49.2 36.2 7.71 7.69 82.2 Sept. 114.6 18 Oct. 2 16 30 . Nov. 13 27 60.8 Dec. 11 26 108.7 42.4 66.3 42.4 66.3 7.67 7.67 8 22 74.2 107.0 61.3 92.1 61.3 92.1 7.68 7.68 Jan. Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments. Average secondary market yields 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. s 20 T A B L E 15: Private Housing Starts and Permits STARTS UNADJUSTED TYP E OF FINANCING VA OTHER SEASONALLY ADJUSTED A N N U A L RATE TOTAL |l-FAMILY" 2 OR MORE BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 2,457 1,347 1,110 152.1 85.4 7.4 59.3 2,142 2,487 1,415 2,682 1,325 2,369 1,302 2,109 1,167 2,350 1,344 2,330 1,296 2,218 1,289 July August 2 , 4 8 4 1,410 September , 2,397 1,383 October — 2,462 1,308 N o v e m b e r r/ 2,388 1,307 December 2,392 1,240 1,071 1,357 1,067 942 150.9 153.6 205.8 106.0 1,006 227.9 226.3 207.5 231.0 204.4 37.4 7.5 27.8 8.0 37.710.5 29.1 8.5 32.4 9.4 31.9 9.6 26.2 9.4 30.3 9.9 28.2 8.9 2 5 . 4 8.5 21.3 8.0 — 5.8 2,204 2,056 2,007 1,991 1,955 2,121 1971 -December 1972 -January February March April May 1,034 929 1,074 1,016 1,154 1,081 1,152 213.2 218.2 186.3 152.7 117.8 155.7 172.9 186.1 184.8 171.9 190.8 167.3 184.3 157.0 2,108 2,237 2,265 2,216 2,139 2,372 T o t a l starts are Census estimates including farm for both permit-issuing and .noii-iss-uing 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 starred 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 m a d e 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 m o r t g a g e s . Building permits are Censps estimates based on 13,000 or all known permitissuing places. U n l i k e starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of days per month, as w e l l as other differences in timing and coverage. 21 TABLE 16: Mortgage and Bond Yields DATE I 1 FHA MORTGAGES 30-year 2 J CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON CONV, & FHA MORTGAGES 5 NEW ISSUE Aaa UTILITY 4 SPREAD BETWEEN YIELDS 0^ NEW CORPORATE BONDS AND FHA MORTGAGES 6 1970 - High 9.29 8.40 8.60 8.30 -.10 -.74 9.43 7.72 .37 .70 - High Low 7.97 7.32 7.95 7.55 .28 -.19 8.26 7.02 .52 -.36 - Nov. Dec. 7.62 7.59 7.75 7.70 .13 .11 7.38 7.28 .24 .31 1972 - Jan. Feb. Mar. Apr. May June July August September 7.49 7.46 7.45 7.50 7.53 7.54 7.54 7.55 7.56 7.60 7.60 7.55 7.60 7.60 7.60 7.65 7.65 7.70 .11 .10 .10 .07 .06 .11 .10 .14 7.21 7.34 7.24 7.45 7.38 7.32 7.38 7.37 7.40 .28 .12 .21 .05 .15 :22 .16 .18 .16 7.57 7.57 7.56 7.70 7.70 7.70 .13 .13 .14 7.38 7.09 7.15 .19 .61 .55 OcBober November December 1 2 3 4 5 6 . Neither mortgage nor bond yields include allowance for servicing costs which are much higher for mortgages than for ^onds. 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 opinions about average bid prices in the private secondary market for new-home mortgages for immediate delivery. Separate data available for 25-year and--beginning July 3 961—30-year mortgages with minimum downpayments, weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year mortgages. Based on FHA-field-office opinion on typical contract interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring offices. See note for Table 1. Yield spread equals conventional mortgage rate less FHA secondary market yield. Yield spread equals FHA secondary market yield less new Aaa corporate bond yield. T A B L E 17: Conventional Mortgage Terms | 1 EXISTING HOMES FEES & CONLOAN / TRACT CHARGES EFFEC- M A T U - P R I C K (PER RATE TIVE RATIO RITY CENT) RATE (PER CLEARS) (PER CENT) CENT) 2 3 NEW HOMES FEES & CONTRACT CHARGES E F F E C - I MATURITY (PERRATE TIVE i ( Y E A R S ) CENT) RATE | (PER CENT) 3 | 2 LOAN AMT. RATIO (PER ($000) CENT) 7.65 7.62 0.87 0.93 7.79 7.77 26.7 26.6 75.4 74.5 27.3 26.5 7 .56 7.51 0.79 0.78 7.69 7.64 24.6 24.6 74.6 74.6 23.2 23.9 7.62 7.45 7.38 April 7.38 May 7.40 June 7.41 July 7.43 Aug. 7.45 Sept. 7.43 Oct. 7.48 Nov. r/ 7.50 D e c . p/ 7.51 0.95 1.02 0,84 0.83 0.84 0.85 0.83 0.86 0.86 0.88 0.91, 0.93 7.78 7.61 7.52 7.51 7.53 7.55 7.56 7.59 7.57 7.62 7.65 7.66 26.5 27.0 27.2 27.2 27.2 27.2 27.2 27.5 27.3 27.2 27.5 27.5 75.0 76.5 76.2 76.0 76.2 76.5 77.0 77.5 77.5 77.3 77.3 77.9 27.6 27.8 28.2 28.5 28.5 27.8 28.2 27.9 27.9 27.4 28.0 29.1 7 .45 7 .35 7 .31 7 .30 7 .33 7,.36 7..37 7.,39 7.,42 7,,43 7.,44 7 .45 0.82 0.79 0.77 0.78 0.77 0.78 0.83 0.81 0.83 0.84 0.84 7.58 7.48 7.44 7.42 7.46 7.49 7.50 7.52 7.55 7.57 7.58 24.7 25.4 25.1 25.2' 25.2 25.5 25.6 26.3 26.2 26.1 26.3 0.83 7.59 26.1 74.7 75.8 75.6 75.3 75.4 76.1 76.2 76.5 76.5 76.3 76.8 76.6 24.1 24.8 24.4 24.9 24.6 25.2 25.2 25.4 24.8 25.0 25.4 25.4 DATE 1971 Nov. Dec. 1972 Jan. Feb. LOAN/ PRICE LOAN AMT. 1 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. 2 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. ($000)
@FedFRASER