Full text of H.16 Capital Market Developments : March 19, 1973
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DECONTROLLED AFTER SIX M O M S COEEi-p.' L . 5 . 8 Confidential (F.R.) March 19, 1973 ^ CAPITAL MARKET DEVELOPMENTS r - 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 WEEK ENDING: 1973 - Feb. 2 9 16 23 Mar. 2 9 16 23 WEEK ENDING: 1973 - Feb. Mar. YIELDS MOODY'S SEASONED NEW ISSUE ' Aaa 7.38 7.20 7.22 7.46 7.34 7.23 7.22 — —— 7.52 7.25 7.27 7.29 n.a. YIELDS MOODY'S BOND BUYER SEASONED SEASONED 20 Aaa BOND INDEX CORPORATE BOND MARKET VOLUME;2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS n.a. 179 99 245 99 n.a. n.a. 234 75 n.a. 99 . 70 20 234 275e 525e 100 88 84 MUNICIPAL BOND MARKET 1 , VOLUME 2 PER CENT GROSS SOLD BY END OF WEEK OFFERINGS 2 9 16 23 5.00 5.05 4.85 4.90 5.16 5.16 5.06 5.13 451 493 307 277 2 9 16 23 5.00 5.05 5.10 n.a. 5.22 5.27 5.34 n.a. 366 483 631 673e n.a. n.a. n.a. n.a. BONDS SCHEDULED WITHIN 28 DAYS 83 83 85 60 77 78 82 n.a. 575 586 712 882 1,552 1*419 1,344 n.a. 1 Derived by adjusting to a Aaa basis, new issues of publiclv-offe.red 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 I TABLE 2: Details on Inventories DATE OFFERED • 3/13 3/15 3/15 3/15 OFFERED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND ISSUER COUPON YIELD CALL PROTECTION AMOUNT' (MIL. $) 45.0 30.0 75.0 25.0 • DATE | RELEXSED Lone Star Trailmobile Finance Northwest Bancorp GTE of SE AMOUNT DATE 1973 - Feb. 16 23 Mar. 2 9 16 7.65 7 7/8 7 3/4 7 3/4 ISSUER COUPON INVENTORIES MUNICIPALS BLUE LIST 1 IN SYNDICATE 839r 112 814 155 789 746r 779 104 126 142 7.65 7.95 7.75 7.75 A —— A ORIGINAL YIELD 5 10 10 5 ESTIMATED PROPORTION SOLD yrs yrs yrs yrs 90% 50% 75% 80% INCREASE RATING AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED 1 CORPORATES IN SYNDICATE 175 128 0 27 44 N.C. - No call protection. 1 All fiRurus in millions of dollars. Blue List: is daily average for week ended Friday,except of threw days endrd Wednesday. ' All other figures are as of Friday. i s daily average Digitized for vhich FRASER for latest w e k T A B L E 3: High Grade Bond Yields NEW CORPORATE Aaa 1 DATE MOODY'S SEASONED CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS 4 1970 - High Low 9.43 (6/19) 7.72 (12/11) 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 8.26 (7/30) 7.02 (2/5) 7.71 (8/12) 7.06 (2/12) 6.51 (6/18) 5.69 (3/23) 6.23 (6/23) 4.97 (10/21) 1972 - High Low 7.60 (4/21) 6.99 (11/24) 7.36 (4/28) 7.05 (12/8) 6.19 (4/14) 5.74 (11/17) 5.54 (4/13) 4.96 (10/21) 7.46 7.34 7.22 7.23 7.22 6.89 6.85 6.88 5.16 5.06 5.13 7.25 7.27 7.29 6.90 6.91 6.93 5.22 Feb. 9 16 23 Mar. 2 , 9 16 1 -- __ I —— 7.52 5.27 5.34 N e w 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. T A B L E 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS 'CORPORATE PERIOD 1973 1 1972 1971 3,205 3,369 3,229 3,115 3,000 6,075 April May June 3,275 3,598 4,341 July August September October November December January February March 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1 2 2,475e 2,175e STATE AND LOCAL | 1973 2 1972 1971 1,776 2,005 2,239 2,732 1,851 2,258 4,042 3,300 4,375 1,989 2,017 2,270 1,891 2,167 2,013 3,582 2,893 2,720 4,147 2,532 3,768 1,805 1,966 1,726 1,989 1,903 2,098 3,791 3,377 3,396 3,387 3,704 3,673 2,200 1,861 1,794 1,728 2.264 2,068 9,803 11,214 9,195 10,564 12,190 11,688 10,447 10,764 6,020 6,276 5,494 5,855 6,841 6,081 5,990 6,060 21,017 30,212 40,776 23,844 34,325 45,089 12,296 17,790 23,645 12,812 18,902 24,962 l,810e 1,410e Securities and Exchange Commission estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. J • 1 | . TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND BONDS MEMO: PUBLICLY 1 PRIVATELY PFD. ISSUES INCLUDED STOCK OFFERED I PLACED FOREIGN | CONVERTIBLE OUARTHR OR MONTH TOTAL 1972 - I II III IV 9,805 11,214 9,195 10,564 5,361 4,634 4,192 4,158 1 593 2 781 1 867 3 ,147 1972 - Jan. Feb. Mar. 3,205 3,369 3,229 1,767 1,907 1,677 Apr. May June 3,275 3,598 4,341 July Aug. Sept. Oct. Nov. Dec. 1973 - Jan.— Feb.S. 2, 3, 3, 3, GROSS PROCEEDS BY TYPE OF ISSUER MFG. PUBLIC UTILITY OTHER ISSUERS 1 851 798 136 258 74 245 57 245 511 449 836 428 1= ,525 2., 1 0 9 1., 6 2 9 1,, 3 9 8 2,261 3,495 2,680 2,934 1.,476 1,, 3 6 9 856 1:, 0 7 9 4,541 4,240 4,030 5,151 604 412 577 834 1,, 0 4 1 976 59 12 3 195 83 233 392 529 604 533 988 740 752 498 227 1,529 1,354 1,658 1,622 1,676 1,336 789 744 1,218 864 L ,148 1,, 7 8 6 15 100 130 92 226 131 581 761 767 1,219 738 1,538 178 391 800 1,297 1,708 1,235 3,582 2,893 2,720 1,807 1,523 863 657 421 789 1;, 1 1 8 948 1., 0 7 0 3 17 37 450 183 203 574 452 603 798 635 1,247 586 237 33 1,624 1,568 838 3,791 3,377 3,396 1,773 1,361 1,024 564 982 1,601 1 ,454 1 ,034 770 28 124 93 162 171 95 383 426 589 1,280 794 860 371 658 50 1,757 1,499 1,895 2,475 2,175 1,000 625 700 700 775 850 75 375 1,040 30 1,030 10 250 850 100 975 n.a. n.a. _ 1 COMMUNICATIONS Other issuers arc 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 Mew Capital (Other than U.S. Treasury) 1 M a r c h 1 through March TYPE 2 ISSUER Pacific Gas & Elec \ \ Ohio Edison Co Greater Jersey Bancorp First City Bancorp of Texas Massey-Ferguson Credit Corp Western Union Telegraph Jersey Central Power & Light Harris Bankcorp Colwell Mortgage Trust Lone Star Gas B.F. Saul R.E. Investment Trust Trailmobile Finance Co. General Tele Co. of Southeast Northwest Bancorp Diversified Mortgage Investors Texas Eastern Trans. Corp. Middle South Util. Public Serv. E & G Com stk (rts) Pref stk Bonds Bonds Bonds Debs Bonds Bonds Bonds Bonds Bonds Bonds Bonds Bonds Notes Com stk Com stk Pref s tk AMOUNT (MILLIONS OF DOLLARS) 125.0 35.4 20.0 40.0 20.0 60.0 30.0 50.0 25.0 45.0 25.0 30.0 25.0 75.0 25.0 81.8 88.5 60.5 MATURITY — -- 1998 1998 1993 1998 1998 1980 1980 1998 1980 1993 2003 2003 1985 • COUPON RATE OR NET INTEREST COST -- 7.36 7.75 7 5.8 8.00 8.10 8 3/8 7.20 8.20 7.65 8 1.2 " 7 7/8 7.75 7 3/4 8.25 OFFERING YIELD — 7.29 7.84 7.65 8.00 8.10 8.23 7.20 8.20 7.65 8.50 7.95 7.75 7.75 8.25 MOODY'S RATING -. — Baa Ba -- A -— A -- -— 7.70 7.64 -- 16 1973 T A B L E 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 ^ ^ ! ISSUER University of Kentucky Vermont St. Paul Ind. Sch. Dist & 625, Minn. Hempstead, N.Y. Huron Valley Sch Dist, Mich Pasco Co-Wide Sch Dist, Fla Maryland, State Mass Home Finance Agency Miami, Fla. Kenton, Co. Airport Bd Ky. San Antonio, Tex Somerset Co., N.J. Chicago Park Dist., 111 Washoe Co S/D, Nev. Washington Penna Higher Ed Fac. Auth Montgomery Co. Md. Henderson, Ky. Henderson, Ky. M a s s Health & Educational Fac. A.uth Mass Health & Educational Fac. Auth Mass Health & Educational Fac1. Auth New York State Pittsburgh, Pa. TYPE 2 Rev-ref G.O. AMOUNT (MILLIONS OF DOLLARS) MATURITY March COUPON RATE OR NET INTEREST COST 1 through March 1 | ! I OI'FKRr;;c Y 1 16 1973 MOODY'S RATING 1) I ^ _ 31.0 30.0 1982-1999 1974-1992 5.74 4.85 4.90-5. 70 3.90-5. 15 A Aa G.O. 26.7 G.O. 13.5 G.O. 17.0 G.O. 15.9 G.O. 100,0 Rev. 43.4 G.O. 28.4 Airport rev 22.0 Rev. 14.0 G.O. 10.1 Rev. 30.0 G.O. 10.0 Ref. 72.2 1976-1991 1974-1999 1974 2002 1974-2002 1976-1988 1974-2013 1974-1997 1975-2002 1974-1994 1974-1993 5.00 Aa A Baa Baa Aaa A A-l Baa Aa 5.04 4.00-5. 20 4.00-5. 50 3.90-5. 60 3.85-5. 90 4.35-5. 00 4.00-5. 70 4.00-5. 70 4.30-6. 00 3.80-5. 15 4.00-5. 20 1975-1993 1974-1988 1974-2003 5.61 5,34 5.?0 4.40-5,.70 4.20-5,.40 4.00-5,.55 A-l A Aa Rev. G.O. Rev. Rev. 33.7 25.0 50.2 32.3 1974-2011 1974-1993 2003 1975-1991 5.73 4.82 5.70 4.25-5,.90 3.90-5,.10 5.70 4.25-5 .50 Baa Aaa Rev. 5.7 Rev. 9.7 1977-1987 -— 4.60-5 .40 A-l Rev. G.O. G.O. 13.4 139.5 14.0 2006 1974-2003 1975-1993 5.75 5.09 5.18 5.75 4.00-5 .25 4.10-5 .35 A-l Aa A-l 1993 -- 5.44 5.55 4.74 —— — «* -—— —— 5.60 -- 5.60 —- ; -- A A-l T A B L E 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 M a r c h 1 through M a r c h COUPON R A T E OR N E T INTEREST C O S T AMOUNT f MIT,LIONS OF DOLLARS) King Co, Wash Dallas, Texas G.O. Rev. F a r m e r s Home A d m i n . F a r m e r s Home A d m i n . Notes Notes 27.9 28.0 300.2 200.9 1975-2013 1974-1993 \5.45 5.03 1978 1988 7.20 7.50 16, 1973 MOODY'S RATING 4.30-5.60 4.00-5.50 7.20 7.58 lights offering. Includes c o r p o r a t e and other security o f f e r i n g s of $15 million and over; SLate and local security offerings of $10 m i l l i o n and over. >bl ig. In case of State and local government s e c u r i t i e s , G.O. denotes '<e v. - Lit. , revenue obligations secured only by income from publ Rev. -Q. -lit . , revenue bonds secured only by income from quasi-u t i 1 i t i es ; S .T. , revenue bonds secured by revenue from specific taxes only; Rev -Kent., bonds secured solely by lease payments. Includes foreign government and International Bank for Reconst rue Lion and Development issues and non-quaranteed issues by Federal Agenci A-l Aa T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 ISSUER Northern Indiana Public Serv. • Southern Bell Tel & Tel Co Walter Kidde & Co Baltimore Gas & Electric : Texas Eastern Transmission Indianapolis Power & Light ; ACF Industries, Inc. Niagara Mohawk Power Corp Indianapolis P & L I American Tel & Tel Co f W a l t e r E. Heller & Co Walter E. Heller & Co Texas Utilities American Electric Power Co Portland G & E Portland General Elect Great American Mortgage Invest First Continental REIT Riviana Foods Inc Excel Investment Corp : NJB Prime Investors Petrolane Inc. Louisville G & E Investors Realty Trust Cabot, Cabot & Forbes Land Trus Connecticut Light & Power Metropolitan Ed * Philadelphia Electric Tenneco Wickes Corp *Union Commerce Corp Continential Illinois Corp Arrow Investment Ltd TYPE Pref stk Bonds Debs Com stk Bonds Bonds Bonds Com stk Com stk Pref stk Sr Debs Debs Com stk Com stk Pref stk Bonds Bonds Bene int Com stk Com stk Bonds Com stk Pref stk . Bonds Bonds 1st mtg Pref stk Com stk Bonds Bonds Bonds Bonds Bene int AMOUNT (MILLIONS OF DOLLARS) 30 .0 350 .0 65 .0 45 .0 60 .0 30 .0 15 .0 52 .5 20 .0 500 ,0 40,.0 20,.0 87,.5 184,.5 20,.0 .35,,0 25.,0 15,,5 15.,5 20.,0 25. 0 35. 4 21. 5 15. 0 25. 0 , 50.0 25. 0 48. 4 100. 0 50. 0 20. 0 100. 0 20. 0 APPROXIMATE DATE . OF OFFERING March March March March March March March March March March March March March March March March March March March March March March April April April April April April April April April INDEF INDEF 19 20 20 21 22 22 22 22 22 27 27 27 27 28 28 28 29 3 3 4 5 12 17 %% 12 T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) o f M a r c h I 6 , ISSUER • TYPE State and Local Colorado Springs S/D 11 El Paso Co, Colo. Tucson, Ariz Baltimore, Md. West Virginia California Florida State Bd. of Ed. El Pasco Co. S/D 11 Cal., HUD Santa Clara Co. Fac. Corp, Cal. , Puerto Rico Wtr Resources Auth. j Washington j San Francisco, Cal. j South Carolina j Penna, State of Jordan S/D Utah Maine Los Angeles Dept. of Airport Pensacola, Fla. Prince Georges' Co, Md. G.O. Rev. G.O. G.O. Rev. Rev. G.O. Bonds G.O. Rev. G.O. G.O. G.O. G.O. G.O. G.O. Rev. Rev. Poll cont. Rev AMOUNT (MILLIONS OF DOLLARS) 14.9 10.0 30.4 40.0 10.0 30.0 14.9 319.5 23.0 75.0 10.0 35.8 47.5 140.0 20.0 21.5 20.0 12.5 25.0 Los Angeles Reg Airport Corp, Cal Rev. 25.5 Lacygne, Kan Rev. 30.0 Gulf Coast Waste Disp. Auth, Tex . Rev. 25.0 j Jacksonville Elec Auth, Fla. Rev. 45.0 | Tacoma, Wash lgt & pwr ref 24.3 j Buffalo N. Y. ~ G.O. 22.9 i Ohio 40.0 G.O. New York, New York 300.0 G.O. Los Angeles Co, Calif Flood Control Dist. G.O. 22.0 Sacramento M u n i Ut. Dist. Calif Elec rev 50.0 Nsvj Mexico 12.0 G.O & Rev. Los Angeles, Calif Dept. of Wtr & Pwr. Rev. 47.0 3 APPROXIMATE DATE OF OFFERING March March March March March March March March March March March March March March March March March March 20 20 20 20 20 20 20 21 21 22 26 26 27 27 27 27 28 March March March March April April April April April 3 4 4 5 11 April April April 17 18 20 June 6 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. 197 - 13 Table 8 STOCK PRICES AND VOLUME TRADING VOLUME 2 - STOCK PRICES 1 ' DATE NYSE INDEX 3 ' D J . INDUSTRIALS AMEX * NYSE AMEX 1970 - H i g h Low 52.36 37.69 (1/5) (5/26) 8 4 2 . 0 0 ( 1 2 / 2 9 ) 2 7 . 0 2 (1/8) 6 3 1 . 1 6 (5/26) 19.36 (5/27) 18.5 (12/4) 7.8 (8/14) 7.1 (1/2) 1.8 (8/14) 1971 - H i g h Low 57.76 48.73 (4/28) (1/4) 9 5 0 . 8 2 (4/28) 26.68 797.97(11/23) 22.72 (4/28) (1/4) 22.1 (2/12) 11.0 (9/17) 6 . 7 (2/5) 2.7 (8/13) 1972 - H i g h Low 65.14 56.23 (12/11) 1 0 3 6 . 2 7 ( 1 2 / 1 1 ) 28.53 25.61 8 8 9 . 3 0 (1/3) (1/3) (4/14) (1/3) 21.8 (11/10) 11.2 (9/8) 7.4 2.6 1973 - F e b . Mar. 2 9 16 23 61.79 61.90 61.93 60.82 980.81 979.46 979.23 959.89 25.60 25.50 25.40 25.07 16.6 17.2 17.1 14.7 3.7 3.8 3.5 3.5 2 9 16. 60.17 61.02 60.75 961.32 972.23 963.05 24.68 24.88 24.71 17.2 16.0 14.2 4.0 2.9 2.7 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., (millions of shares). Volume figures are daily averaged for the entire week, 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 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 25 (3/10) (9/8) Ih T A B L E 9: Security Credit END OF PERIOD Outstanding: - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. - Jan. Outstanding Changes; 1972 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1973"- Jan. l NET i R E D T [ CUSTOMERS' 1 CUSTOMERS' NET EXTENDED BV : NET DEBIT FREE CREDIT ' BROKi RS AND BALANCES ) BALANCES | DEALERS ' CREDIT EXTENDED T O MARGIN CUSTOMERS BY: TOTAL i "1B, mA N K S ^ I ! ; j | ! 5,700 6,180 6,620 7,010 7,200 7,510 7,600 7,780 7,800 7,800 7,890 7,900 2 ,490 2 ,510 2 ,520 2 ,530 2 ,560 2 ,650 2.,690 2.,780 2, ,830 2, ,860 2,,860 2,,440 8 ,190 8 ,690 9 ,140 9 ,540 9 ,760 10 ,160 10:,350 10;,560 10,,630 10,,660 10,,750 10,,340 7,700 2, 910 10, 610 300 480 440 390 190 310 150 120 20 50 20 10 10 30 90 50 90 50 30 90 10 -420 350 500 450 400 220 400 200 210 70 20 90 410 -200 470 270 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 2,488 2,542 2,512 2,459 2,300 2,231 2,245 2,117 2,056 2,097 2,218 2,317 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 2,296 j 5 ! i ---- . 268 54 -30 -53 -129 -99 14 -128 -61 41 121 99 21 Margin debt, as reported by the N e w York Stock Exchange. Although marg until March 1968 included loans secured by U.S. governments, the amount loans included is thought to have been small. "Bank loans to others than brokers and dealers for purchasing or carry:'rities other than U.S. governments T h e difference between customers' net debit balances and customers' net tree dit balances, this figure represents the net credit extended by brokers dealers to the nonfinancial public. => N O T E : With the exception of bank loan data, figures are supplied bv th< Stock Exchange and are end of month data. Bank loans are for v.veMy i\ • large commercial banks. Broker data includes loans for regulated secur i L i e < bank data includes loans for the purpose of purchasing or carrying any secur ity, e the r regulated or not. FRASER Series discontinued Digitized for T A B L E 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS NET REGULAR DEPOSITS 3 NEW ANNUAL M ONEY2 GROWTH NET RATE 1 FLOW 1969 1970 1971 1972 2,549 4,517 9,621 9,788 4.0 6.8 13,5 12.0 1971 - December 1972 - January February December 1,209 855 931 1,224 —— 1973 - January^./ February^./ 785 525 --—— -- -763 936 5,678 5,397 SAVINGS & LOAN ASSOCIATIONS NET SHARE CAPITAL ANNUAL NEW NET GROWTH MONEY2 FLOW RATE 1 Not Seasonally Adjusted 4,068 3.1 -1,003 10,965 8.1 5,285 28,230 19.3 20,653 32,902 19.5 23,884 325 716 809 294 3,114 3,266 2,818 3,416 n • a. • n.a. 3,000 1,650 -— -- __ — TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW 6,617 15,482 37,851 42,690 3.4 7.7 17.5 17.0 __ NET NEW MONEY 2 -1,766 6,231 26,331 29,281 1,168 3,117 2,700 1,156 4,323 4,121 3,749 4,640 n.a. n.a. 3,785 2,175 -- n.a. 3,869 3,485 2,966 2,942 16.3 14.5 12.2 12.0 -- 4,575 2,019 18.4 8i0 --— 1,493 3,833 3,509 1,450 Seasonally Adjusted 1972 - September October November December 939 779 720 793 12.8 10.5 9.7 10.5 1973 - Januarys/ February^./ 827 439 10.9 5.7 — — — —— 2,930 2,706 2,246 2,149 17.8 16.2 13.3 12.6 3,748 1,580 21.3 9.0 -—- -- Annual growth rate for monthly data is the annualized monthly percentage increase in deposit's. Net New Money is new deposits net of both withdrawals and interest. Data for S&tLs 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 Hank Hoard. -— —— -- . TABLE 11: Mortgage Commitments at Selected Thrift Institutions TOTAL DATE OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS & SAVINGS LOAN BANKS (N.Y. STATE) ASSOCIATIONS I | TOTAL 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollar 3, Seasonally Adjusted)r/ Nov. Dec. j •Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. 1 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 1.6l .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 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. 17 TABLE 12: Net Change in Mortgage Holdings 1 DATE FINANCIAL INSTITUTIONS SAVINGS & | L I F E MUTUAL TOTAL £/ LOAN INSURANCE SAVINGS INCLUDING TOTAL I COMMERCIAL ASSOC. j COMPANIES I BANKS FNMA-GNMA BANKS Not Seasonally Adjusted - May June July Aug. Sept. Oct. Nov. Dec. 23,781 24,074 21,736 41,647 21,273 19,699 16,827 39,259 6,677 5,404 2,462 9,940 4,958 5,724 4,872 5,931 5,286 4,779 5,114 5,943 4,674 5,692 4,717 5,563 4,918 4,684 4,984 5,811 1,500 2 1,600 1,000 4,371 4,118 862 3,456 3,828 4,464 4,363 4,908 5,176 4,849 5,471 4,748 4,714 5,282 5,697 3,250 3,550 4,329 4,327 4,521 5,060 4,593 5,179 4,714 4,738 5,212 5,601 1,112 1,178 1,264 1,361 1,434 1,489 1,451 1,477 1,155 1,393' 1,524 1,164 - Jan. 1 1,500 1,400 1,400 1,500 1,000 - Jan. - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1,600 2,787 2,682 1,845 3,938 9,350 9,561 10,172 24,160 2,459 2,052 2,348 1,221 454 585 438 553 502 . 472 517 598 2,720 3,453 2,758 3,313 2,926 2,673 2,712 3,101 24 54 79 97 90 139 255 1,112 . n. a. n.a. Seasonally Adjusted 524 2,367 365 290 315 464 400 453 516 472 515 537 484 513 525 1,871 2,075 2,596 2,481 2,567 2,959 2,678 3,108 2,911 2,726 2,876 3,130 -23 -18 5 85 67 96 101 79 111 135 299 782 1,212 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. 15 TABLE 13: Net Increases in Mortgage Debt Outstanding Billions of dollars, SAAR ? 1- to 4-| MULTIFAMILY j FAMILY MULTI-AND COMMERCIAL FARM 7.2 8.48.8 8.5 1.8 1.8 2.5 2.8 TOTAL RESIDENTIAL 3 - 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 - 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 - 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 - 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 - I II III IV 37.1 47.8 53.6 53.4 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 - I II Ille 61.8 64.1 64.3 67.2 14.5 15.2 14.9 14.6 23.9 24.6 25.3 24.3 2.6 2.6 2.9 2.6 QUARTER IV 26.6 -36.1 40.1 40. 1 45.4 47.1 46.4 49.1 35.9 37.5 36.2 39.4 ^ COMMERCIAL 9.5 9.6 10.2 9.8 14 mmm 3 - *• - - - - -iiy 1 T A B L E 14: FNMA Weekly " A u c t i o n " Results WEEK ENDED COMMITMENTS IN $ MILLIONS ACCEPTED 1-YEARH 906TOTAL TOTAL MONTH & OVER OFFERED DAY IMPLICIT YIELD 2 (per cent) 90DAY 352.8 271.2 186.4 211.5 224.9 162.7 211.5 224.9 162.7 78.7 60.8 49.2 36.2 49.2 36.2 11. 26 r 82.2 108.7 42.4 66.3 42.4 <>6.31 Jan. 8 22 74.2 107.0 61.3 92.1 61.3I 92.1 — 7.69 7.70 Feb. 5 65.4 71.6 65.4 71.6 -- 20 128.7 110.3 7.71 7.73 5 170.8 107.7 107.7 -- 7.75 Oct. Nov. Dec. Mar. 2* 16 30 13 27 --- —— -- -- 7.70 7.73 7.74 -- -- 7.72 7.70 -- 7.68 7. 69 6MONTH 1-YEAR & OVER — — -- — -- — — — -- -- 1 Note: Average secondary market yields are g r o s s — b e f o r e deduction of 38 basis-point fee paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for FNMA commitment fees and FNMA stock purchase and holding requirements. 20 T A B L E 15: Private Housing Starts and Permits STARTS ! i DATE- SEASONALLY ADJUSTED ANNUAL RATE TOTAL-1 -FAMILY 2 OR MORE 1 TOTAL ! i 2 - January February March April May June July August September October November December 2.,439 ,540 2: ,313 i 2. j 2.,204 j2 ;,318 ,315 i 2. ; 2. ,244 ! 2.,424 ,426 ..2, ,446 2,,395 2,,369 1.,395 1.,281 1.,310 1.,215 L ,308 1.,283 1,,319 1.,373 1,,382 1,,315 1,,324 1,,207 1,044 1,260 1,003 989 1,011 1,032 925 .1,051 1,045 1,131 1,071 1,162 3 - January February !2 j ,496 2 3,444 1,,449 1,,361 1,047 1,083 i , 150.9 153.6 205.8 213.2 227.9 226.3 207.5 231.0 204.4 218.2 187.1 150.5 147.1 138.8 UNADJUSTED I TYPE OF FINANCING I FHA VA | OTHER ! I i BUILDING ' PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 36.1 7.5 8.0 27.8 37.7 10.5 29.1 8.5 32.4 9.4 31.9 9.6 26.2 9.4 30.3 9.9 28.2 8. 9 25.4 8.5 21.3 8.0 42.3 5.8 107.3 117.8 155.7 172.9 186.1 184.8 171.9 190.8 167.3 184.3 157.8 102.4 2 ,204 2 ,056 2 ,007 1 ,991 1 ,955 2 ,121 2 ,108 2,,237 2.,265 2,,216 2, 139 2, 377 12.0 126.3 2, 218 2.,155 6.8 6.8 " 1 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 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. 2 Building permits are Census estimates based on 13,000 or all known permitissuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of days per month, as well as other differences in timing and coverage. 21 TABLE 16: Mortgage and Bond Yields DATE I 1 FHA MORTGAGES j 30-year 2 CONVENTIONAL MORTGAGES 3 1 SPREAD BENEW TWEEN YIELDS ISSUE ON CONV. & . Aaa FHA MORTUTILITY GAGES 5 4 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 6 1971 - High Low 7.97 7.32 7.95 7.55 .28 -.19 8.26 7.02 .52 -.36 1972 - High Low 7.57 7.45 7.70 7.55 .14 .06 7.40 7.09 .61 .05 1972 - Jan. Feb. Mar. Apr. May June July August September October November December 7.49 7.46 7.45 7.50 7.53 7.54 7.54 7.55 7.56 7.57 7.57 7.56 7.60 7.60 7.55 7.60 7.60 7.60 7.65 7.65 7.70 7.70 7.70 7.70 .11 .14 .10 .10 .07 .06 .11 .10 .14 .13 .13 .14 7.21 7.34 7.24 7.45 7.38 7.32 7.38 7.37 7.40 7.38 7.09 7.15 .28 .12 .21 .05 .15 .22 .16 .18 .16 .19 .61 .55 1973 - Jan. Feb. 7.55 7.56 7.70 7.75 .15 .19 7.38 7.40 .32 .35 1 2 3 4 5 6 1 Neither mortgage nor bond yields include allowance for servicing costs which arc much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the table. Based on FHA-field-office opinions about average bid prices in the private secondary market for new-home mortgages for immediate delivery. Separate data available for 25-year a n d — b e g i n n i n g July I961--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. 22 TABLE 17: Conventional Mortgage Terms NEW HOMES DATE 1972 Jan. Feb. Mar. Apr. May June July ; Aug. Sept. J Oct. Nov. Dec. 1973 Jan. r/ Feb. £ / | LOAN™/ CON- FEES & PRICE LOAN TRACT CHARGES EFFEC- MATURITY RATE (PER (YEARS) > RATIO AMT. TIVE j (PER ($000) (PER CENT) RATE CENT) CENT) 3 2 1 V EXISTING HOMES CON- ^ FEES & r [l.OAN/ j ~ " i TRACT CHARGES EFFEC-I MATU- Ipkir.F 1 LOAN (PER RATE TIVE ! RITY |RATIO | AMT. CENT) RATE j (YEARS )| (PER (PER CENT) CENT) 2 3 j ! ($ooo) 1 7.62 7.45 7.38 7.38 7.40 7.41 7.43 7.45 7.43 7.48 7.50 7.51 0.95 1.02 0.84 0.83 0.84 0.85 0.83 0.86 0=86 0.88 0.91 0.92 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 78.0 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 7.58 0.79 7.48 0.77 7.44 0.78 7.42 0.77 7.46 0.78 7.49 0.83 7.50 0.81 7.52 0.83 7.55 0.84 7.57 0.84^ "7.58 0.86 7.59 7.52 7.53 0.92 0.96 7.67 7.69 27. 5 28.0 78.5 79.0 29.0 29.9 7.46 7.47 0.83 0.82 7.60 7.61 24.7 25.4 25.1 25.2 25.2 25.5 25.6 26.3 26.2 26.1 26.3 26.4 74.,7 75..8 75..6 75.,3 75.,4 76. 1 76.,2 76. 5 76. 5 76. 3 76. 8 76. 8 24.1 24.8 24.4 24.9 24.6 25.2 25.2 25.4 24.8 25.0 25.4 25.7 26.1 26.4 77.0 77.4 25.6 25.4 ... - J 1 2 3 Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted opinions of field-office directors of the Federal Housing Administration, are available somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case of new home mortgage rates--in Table 16. Fees and charges--expressed as a percentage of the principal mortgage amount — include loan commissions, fees, discounts, and other charges which provide added income to the lender and are paid by the borrower. They exclude any closing costs related solely to transfer of property ownership. Includes fees & charges amortized over a 10 year period in addition to the contract interest rate. f - ; i f , I ) t
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