Full text of H.16 Capital Market Developments : October 23, 1972
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D E C O N T R O L L E D AFTER SIX M O O T ! October 23, CAPITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. 1972 INDEX Developments in the Corporate and Municipal Bon^ 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 1 f 1 WEEK ENDING: 1972 - Sept. Oct. Oct. 1 2 CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 1 8 15 22 29 7.41 7.38 7.34 7.44 7.42 7.16 7.19 7.23 7.23 7.24 98 371 121 252 100 41 90 58 86r 99r n.a. n.a. n.a. n.a. n.a. 6 13 20 27 7.44 7.48 7.43p n.a. 7.23 7.22 7.21 n.a. 433 171 564 375e 88 69 80 n.a. n.a. WEEK ENDING: 1972 - Sept. YIELDS MOODY'S NEW ISSUE SEASONED Aaa Aaa UTILITY ' YIELDS MOODY'S BOND BUYER NEW ISSUE SEASONED 20 Aaa BOND INDEX MUNICIPAL BOND MARKET VOLUME2 PER CENT 1 GROSS SOLD BY END 1 BONDS SCHEDULED OF WEEK | WITHIN 28 DAYS OFFERINGS 1 8 15 22 29 5.10 5.15 5.10 5.15 5.08 5.38 5.39 5.38 5.37 5.30 299 225 600 291 568 68 88 79 72 87 6 13 20 27 5.05 5.00 5.05 n.a. 5.22 5.16 5.23 n.a. 382 707 474 277e 98 82 66 n.a. 681 758 1,308 1,289 1,484 993 690 749 n.a. New series derived by adjusting to a Aaa utility 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 ). For additional details and back data, see the September 1972 issue of the Federal Reserve Bulletin. The Aaa corporate yield series previously published in the L.5.8 has been discontinued. Millions of dollars unless otherwise indicated. Note: See footnotes to Table 3. TABLE 2: Details on Inventories DATE OFFERED AMOUNT (MIL. $) 53.0 25.0 30.0 10/16 10/17 10/17 10/17 10/18 10/18 10/19 10/19 10/19 OFFERED 25.0 10.0 60.0 100. 100. 50.0 10/17 10/19 AMOUNT ISSUER 20.0 Mass Elect United Tel of Pa 15.0 MUNICIPALS BLUE LIST [_ I N SYNDICATE DATE 1972 - Sept. COUPON 8 1/8 7 3/4 7.60 7 5/8 7.45 7 5/8 7 1/2 6 3/4 7.00 7.50 Metro Ed Ohio Pwr Central Tel S.W. Pub Svc Witco Chem Hawaii Elec Columbia Gas First Chicago Ford Motor Credit Ford Motor Credit 20.0 DATE | RELENSED 10/10 10/12 ISSUER 22 29 Oct. 618 630 163 73 ORIGINAL RATING AND YIELD CALL PROTECTION 8.00 Baa 5 yrs 7.65 A 5 yrs 7.60 Aa 5 yrs 7.54 Aa 5 yrs 5 yrs 7.45 A 7.65 A 5 yrs 7.55 A 5 yrs 6.87 NR 7 yrs 6.98 MR 7 yrs 7.50 NR 10 yrs COUPON 7 3/4 7 5/8 ORIGINAL YIELD 7.60 7.63 ESTIMATED PROPORTION SOLD 40% 50% 50% 98% 75% 80% 33% 70% 98% 98% INCREASE RATING AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED +9 +5 A A 5 yrs 5 yrs 75% 50% CORPORATES IN SYNDICATE 35 15 6 650r 51 51 13 755 119 59 20 824 193 145 N.C. - No call protection. l All figures in millions of dollars. Blue List is daily average for week ended Friday, except for latest vc-ek vhich is daily average of three days ended Wednesday. All other figures are as of Friday. TABLE 3: High Grade Bond Yields NEW ISSUE Aaa UTILITY 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 (8/13) 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) 7.08 (3/10) 7.36 (4/28) 7.16 (8/1) 6.19 (4/14) 5.92 (8/18) 5.54 (4/13) 4.99 (1/13) 22 29 7.44 7.42 7.23 7.24 6.07 6.12 5.37 5.30 6 13 .7.44 7.48 7.23 7.22 6.07 6.02 5.22 5.16 1972 - Sept. Oct. 5.23 20 7.43p 6.00 7.21 New issue Aaa utility, 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 bondk 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 1 TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS CORPORATE 1 STATE AND LOCAL ' 1971 1972 1971 January February March 3,205 3,369 3,229 3,115 3,000 6,075 2,636 1,802 3,539 1,776 2,002 2,237 2,732 1,851 2,258 1,340 1,214 1,555 April May 3,275 3,598 4,341 4,042 3,300 4,375 3,170 3,909 3,389 2,114 1,986 2,224 1,891 2,167 2,013 1,647 996 1,085 -o July August September 3,436 2,910e 4,147 2,532 3,768 2,768 2,274 3,518 1,771 1,918 1.989 1,903 2,098 1,348 1,359 1,758 • 3,387 3,704 3,673 3,777 4,182 3,980 1,728 2,264 2,068 1,924 1,748 2,190 9,803 11,214 12,190 11,688 10,447 10,764 7,977 10,468 8,560 11,939 6,015 6,325 6,841 6,081 5.990 6,060 4,109 3,728 4,465 5,862 21,017 23,844 34,325 45,089 18,445 27,005 38,944 12,339 12,912 18,902 24,962 7,837 12,302 18,164 October November December 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1970 - 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) QUARTER OR MONTH GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND MEMO: PRIVATELY PFD. ISSUES INCLUDED MFG. PLACED STOCK FOREIGN CONVERTIBLE ,130 215 ,351 3,384 1,758 ,202 114 652 4,079 1,641 133 3,193 2,439 ,543 767 GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS ISSUERS 1 2 , 910 2 , 651 3 , 041 896 2,,263 1:,053 4,753 3,331 4,164 1971" - I I III IV 11,688 10,447 10,764 PUBLICLY OFFERED ~ 6,546 4,725 5,135 1972 - I II 9,805 11,214 5,361 4,634 1,593 2,781 2,851 3,798 74 245 511 449 ,525 ,109 2 , 261 3 , 495 1 ,476 1 ,369 4,541 4,240 4,375 2,282 760 1,332 52 712 ,206 1,,055 218 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 34 199 160 293 582 474 ,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 1,201 59 62 12 222 395 150 662 811 980 933 1,,217 891 432 269 352 1,360 1,408. 1,450 Jan. Feb. Mar. 3,205 3,369 3,229 1,767 1,917 1,677 604 412 577 834 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 July Aug. e/ Sept.e/ 3,275 3,598 4,341 3,436 2,910 2,750 1,622 1,676 1,336 1,803 1,510 850 789 774 1,218 534 600 800 864 1,148 1,786 15 100 130 800 1,100 n.a. n. a. 92 226 131 442 220 205 581 761 767 568 425 700 1 ,219 738 1 ,538 767 650 1 ,100 178 391 800 582 190 25 1,297 1,708 1,235 1,519 1,645 925 1971 - June TOTAL 1,100 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. " TABLE 6: Large Long-term Public Security Issues for New Capital . (Other than U.S. Treasury) 1 1 ISSUER Philadelphia Elect Gen'l Elect Credit Corp Mich-Wisc. Pipeline Southern New England Tel Co Citizens & So Realty Inv Consumers Pwr Consumers Pwr Household Finance Co GTE of Southwest Louisiana Land Offshore Exploration Massachusetts Elec Co Atlantic City Elect Northeast Utilities Metropolitan Edison United Tel of Pa Pacific Pwr & Lt Pacific Pwr & Light Co M-G-M Texas Elect Svc Potomac Elect Southwestern Pub Serv Co Ohio Pwr Co Columbia Gas System Centr 1 Tel C o Montana Dakota Util Witco Chem Corp Southeast Banking Westinghouse Credit Corp First Chicago TYPE 2 Cm st Deb 1st mtg Pref Deb Cm st Bonds Deb Debs Conv debs Bonds Cm st Cm st Deb 1st mtg Pref 1st mtg Bonds Pref Cm st Bonds Bonds Deb 1st mtg 1st mtg Bonds Conv deb Deb Debs AMOUNT (MILLIONS OF DOLLARS) 92.7 75.0 50.0 50.0 30.0 61.6 50.0 100.0 40.0 75.0 20.0 15.3 58.3 53.0 15.0 25.0 30.0 50.0 30.2 37.5 20.0 25.0 60.0 30.0 20.0 25.0 35.0 75.0 100.0 COUPON RATE OR NET INTEREST COST MATURITY OFFERING YIELD 1980 1992 7.00 7 5/8 1978 6 3/4 6.94 7.70 7.52 6.75 2002 1997 2002 7 1/2 7 1/2 7 1/2 7.45 7.50 7.60 1982 2002 (4) 7 3/4 7.60 -- MOODY 1! RATING -- A --— —— -- —— -- —— 1997 2002 -- 2002 1992 — • 8 1/8 7.625 7.93 7 3/4 9.00 7.44 — 2002 2002 1997 1997 1992 1997 1997 1997 1980 7.63 7.75 7 1/2 7.60 7 5/8 7.45 4.75 7.60 6 3/4 -- Aa —— A —— A -—— 8.00 7.625 7.85 7.80 9.00 7.40 Baa A -- Baa Baa —- —— —— 7.54 7.65 7.55 7.60 7.58 7.45 4.75 7.60 6.87 Aa A A Aa A A ---- TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury)1 ISSUER Ford Motor Credit Ford Motor Credit Pa Pwr & Lt Ahmanson, H.F., & Co Public Serv. E & G Orange & Rockland Util TYPE 2 Debs Notes Cm Cm st Pref Cm AMOUNT (MILLIONS OF DOLLARS) 50.0 100.0 48.5 22.4 76.0 24.9 MATURITY 1992 1980 Oct. 2, 1972 thru Oct. 20, 1972 COUPON | RATE OR niTKRMOODY'S NET INTER- | L;,C RATING EST COST j YIELD 7.50 7.00 7.50 6.98 — —— •• -— —— —— —— —— 7.80 7.72 -- T A B L E 6: L a r g e Long-term P u b l i c Security I s s u e s ' f o r New C a p i t a l ( c o n t i n u e d ) (Other than U.S. T r e a s u r y ) 1 ISSUER State and Local Massachusetts Bay Transp Auth Massachusetts Bay Transp Auth California, State of Texas Wtr Dev. Bd. San Bernardino Wtr. Dist., Cal. New York State New York City Wisconsin Colorado Springs, Co. Washington Metro. Area Transit Auth Allegheny Co., Pa Manatee Co. , Fla. Manattee Co., Fla. Austin, Texas Austin, Texas Monroe School Dist. Pittsburgh Pub Pk Auth., Pa. Los Angeles DWAP Los Angeles DWAP South Carolina Phoenix, Ariz Phoenix, Ariz. San Diego Unified Port Dist., Cal. Salem, Mass Oct, 2 thru Oct. 20. 1972 COUPON RATE OR MOODY'S oitkrNET INTER i:.( RATING EST COST VILLI) AMOUNT (MILLIONS OF DOLLARS) G.O. G.O. G.O. G.O. G.O. 27., 1 12. 9 90.,0 25.,0 12.,0 -- 1973-1997 2012 1973-1992 1974-1993 1975 1992 5.,24 4.,61 4.,66 4.,81 G.O. G.O. G.O. Rev. 156.,0 304,,0 35..0 19,.0 1973-2002 1974-2013 1973-1992 1977-2000 4.,76 5..74 4,.47 5,,0C Rev. G.O. Rev. Rev. G.O. Rev. G.O. Rev. Rev. Rev. G.O. G.O. G.O. 225.0 36.0 9.9 14.5 Rev 6.0 6.2 10.5 11.5 24.8 25.3 48.8 Rev 10.0 Rev 12.0 1912 1973-2002 1977-1999 2011 1974-1997 1977-1997 1973-1992 2012 2012 1978-1997 1973-1986 1977-1984 1979-1982 7.30 5. 17 22.0 14.3 1981-1994 1973-1992 G.O. G.O. & & & •- 3.,00-5.25 5.40 , 2..90-5.25 \ 3 ' .00-5.15 \ 3.,50-5.10 & 5.60 3.,00-5.40 4,.00-6.35 2, .90-5.10 3, .70-5.00 Aa Aa Aaa Aaa A 7.30 3.00-5.40 4.00-5.90 Aaa A-1 Aa Baa-1 Aa Aa —— -- -— Aa Aa A 4. 26 4. 57 4. 29 3.20-5.50 N.R. 3.00-5.40 6.63 5.35 4.00-5.25 2.90-4.60 4.10-4.70 . 4.05-4.35 4.,97 4.,75 4.25-5.10 3.00-5. 10 4. 90 4. 96 4. 93 •- 5. 30 •- -— Aa Aa Aaa A Aa A-l Aa TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury)1 ISSUER TYPE 2 State and Local Los Angeles Co. Flood Cntrl Dist., Calif. los Angeles Co. Flood Cntrl, Dist., Calif. Estero Muni Improvement Dist University of Texas AMOUNT (MILLIONS OF DOLLARS) MATURITY Oct. COUPON | RATE OR ; OFFERNET INTERL'.r EST COST | YIELD 1972 MOODY'S RATING Rev. 11.0 1972-1995 4.97 3.30-5.10 Aa Rev. G.O. Rev. 24.0 13.5 1974-2003 1975-2006 1973-2002 4.97 3.30-5.40 4.70-6.50 3.00-5.50 Aa 10.0 6.60 5.15 Other T.V.A. Export-Import Bank * 1 2 3 4 Bonds Debs 150.0 300.0 1997 1978 7.41 .6.45 7.37 6.45 Rights offering. Includes corporate and other security offerings of $15 million a n d o v e r ; State and local security offerings of $10 million and over. In case of State and local government securities, G.O. denotes g e n e r a l o b l i g a t i o n ; '<ev.-Ut., revenue obligations secured only by income from publ i c u t i l i t i e s ; Rev. -Q.-lit. , revenue bonds secured only by income from quasi-ut i 1 i t i e s R; e v . - S . T . , revenue bonds secured by revenue from specific taxes only; R . -Rent. , r e v e n u e bonds secured solely by lease payments. Includes foreign government and International Bank for Reconst r u e t i o n Development issues and non-quaranteed issues by Federal Agenci Variable Coupon 1.80 through 9/77, 5.00 thereafter. Aaa TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)1 As of October 24, 1972 ISSUER Corporate Georgia Pwr New England Tel & Tel Leasco Fin Svc \ Englehard Minerals & Chem Co First Commerce Corp Gilbert Flexi-Van Corp Portland- Gen'1 Elect United Jersey Banks Nevada Pwr Puget Sound Pwr & Lt Talley Industries Carolina Pwr & Lt Tampa Elect . Bank of Va Zapata Exploration Co First Tenn National Corp Hershey Foods *Great Am Mtg Commonwealth Edison Louisiana Pwr & Lt Fla. Pwr Southern Company -Tenneco Offshore Fla. Pwr & Lt Delmarva Pwr & Lt -Michigan Bell Tel -New England Pwr -Detroit Edison *South Carolina Elect & Gas First Nat'1 City Corp American Tel & Tel GMAC Texas Industries TYPE Pref Deb Bonds Conv deb Conv deb Conv deb Bonds Debs 1st mtg 1st mtg Bonds Cm st Pref Debs Conv deb Deb Debs Deb Pref Bonds Bonds Cm st Bonds Pref Cm st Bonds Pref Pref Cm st Bonds Bonds Bonds Debs AMOUNT (MILLIONS OF DOLLARS) 75 .0 200 .0 50 .0 50 .0 20 .0 25 .0 20 .0 20 .0 15 .0 . 15.0 25 .0 54,.0 20 .0 20,.0 25,.0 25,.0 30..0 25.,0 50..0 25,,0 50.,0 150.,0 90, 0 60. 0 20. 0 125. 0 15. 0 75. 0 25. 0 100. 0 500. 0 150. 0 15. 0 APPROXIMATE DATE OF OFFERING October October October October October October October October October October October November November November November November November November November November November November November November November November November November November November December INDEF INDEF 24 24 24 25 25 25 25 25 26 26 31 1 2 7 7 7 8 9 13 14 14 14 15 15 16 20 21 29 29 13 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) As of Oct 20, 1972 ISSUER TYPE State and Local *Hawaii Pittsburgh S/D Pa. *Chicago City S/D 111 * S a n Juan, P.R. *Vero Beach, Fla. *Washington St Bd Comm Coll Ed Oregon New York State *Maine Winston-Salem, N.C. Tarrant Co, Texas Jr Call Dist J3anta Ana USD, Cal. Pasadena, Cal. Flat Rock, Mich. Georgia Highway Auth Omaha Metro Util Dist Delaware Co Indus Dev Auth, Pa *Onondaga Co., N.Y. *Cuyahoga Co., Ohio California, State of Jackson, Miss *Pennsylvania *Long Beach, Cal. *Kent State University, Ohio Ohio *Pennsylvania Monroe Co., Mich. * 1 2 Rev. G.O. G.O. G.O. Rev. G.O. G.O. G.O. G.O. G.O. G.O. G.O. Rev. Ind dev rev Rev. G.O. G.O. G.O. G.O. G.O. G.O. G.O. Rev. G.O. G.O. G.O. Rev. AMOUNT (MILLIONS OF DOLLARS) 25.0 20.0 35.0 14.5 11.6 10.0 45.0 16.9 16.5 10.9 14.0 10.0 10.0 25.0 19.0 20.0 40.0 12.0 15.0 90.0 16.4 145.0 21.9 11.3 100.0 145.0 57.0 APPROXIMATE DATE OF OFFERING October October October October October October October October October October October October October October November November November November November November November November November November November November INDEF 24 24 25 25 25 25 25 25 31 31 31 31 31 1 1 1 2 2 3 8 8 9 15 16 18 Included in table for first time. Includes corporate and other issues of 515 million and over; State and local Government issues of $10 million and over. Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. u STOCK PRICES AND VOLUME STOCK PRICES 1 NYSE I N D E X 3 ' TRADING VOLUME 1 AMEX 4 D J . INDUSTRIALS 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) 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) 61.56 (8/11) 56.23 (1/3) 971.25 (5/26) 28.53 (4/14) 889.30 (1/3) 25.61 (1/3) 21.2 (3/24) 11.2 (9/8) 7.4 (3/10) 2.6 ( 9 / 8 ) 16.7 11.2 12.3 3.3 8 15 22 29 61.34 60.53 59.76 59.51 60.60 970.05 961.24 947.32 943.03 953.27 26.67 26.46 26.15 26.06 26.18 6 13 20 60.03 59.10 59.77 945.36 930.46 942.81 25.95 25.80 25.72 1 11.8 2.6 2.8 13.9 2.6 3.0 15.3 11.8 14.2 3.1 2.6 2.9 NOTES: 1. Figures other than highs and lows are Fridays only. Highs and lows art 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 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 25 15 TABLE 9: Security Credit END OF PERIOD CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 | BANKS 2 | TOTAL NET CREDIT j CUSTOMERS ' CUSTOMERS' NET EXTENDED BY BROKERS AND NET DEBIT FREE CREDIT DEALERS 3 BALANCES BALANCES Outstanding: 1971 - July Aug. Sept. Oct. Nov. Dec. 4,790 4,850 4,930 4,950 4,910 5,400 2,420 2,430 2,430 2,410 2,400 2,440 7,210 7,280 7,360 7,360 7,310 7,840 (4) (4) (4) (4) (4) (4) 2,210 2,200 2,100 2,160 2,170 2,220 (4) (4) (4) (4) (4) (4) 1972 - Jan. Feb. Mar. Apr. May June July 5,700 6,180 6,620 7,010 7,200 7,510 7,660 2,490 2,510 2,520 2,530 2,560 2,650 2,700 8,190 8,690 9,140 9,540 9,760 10,160 10,360 (4) (4) (4) (4) (4) (4) (4) 2,488 2,542 2,512 2,459 2,330 2,231 2,245 (4) (4) (4) (4) (4) (4) (4) 1972 - July Aug. Sept. Oct. Nov. Dec. 70 60 80 20 -40 490 30 10 100 70 80 -20 -10 40 — -^ -50 530 —— 1972 -• Jan. Feb. Mar. Apr. May June July 300 480 440 390 190 310 150 50 20 10 10 30 90 50 350 500 450 400 220 400 200 Change in ]utstanding: l 2 3 4 —— — — —— — -- — 230 -10 100 60 10 50 268 54 -30 -53 -129 -99 14 --- — — —— — -- -— 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 difference between customers' net debit balances and customers'net free credit balances, this figure represents the net credit extended by brokers and dealers to the nonfinancial public. NOTE: With the exception of bank loan data, figures are supplied by the New York Stock Exchange and are end of month data. Bank loans are for weekly reporting large commercial banks. Broker data includes loans for regulated securities; bank data includes loans for the purpose of purchasing or carrying any security, whether regulated or not. Series discontinued TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS NET REGULAR DEPOSITS 3 NEW ANNUAL MONEY 2 GROWTH NET 1 RATE FLOW 2,549 4,517 9,623 415 300 793 - July August September - July August jj,/ September e/ 581 416 950 4.0 6.8 13.5 -763 936 5,678 -- 276 195 105 413 310 100 — -— SAVINGS & LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL MONEY2 GROWTH NET 1 FLOW RATE TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW 1 NET NEW MONEY 2 Not Seasonally Adjusted 1,003 3.1 4,068 5,285 8.1 10,965 20,652 19.4 28,244 6,617 15,482 37,867 1,551 1,538 2,670 1,463 1,052 1,091 1,966 1,409 3,463 1,739 1,247 1,196 2,290 1,801 3,000 2,159 1,709 1,150 2,871 2,217 3,950 2,572 2,019 3.4 7.7 17.5 -1,766 6,231 26,330 Seasonally Adjusted iy.0 4,180 16.5 3,678 10.6 2,390 -16.6 3,736 -18.4 4,249 -12.4 2,904 , 3,289 _ 13 ^9 . -Annual growth rate, for monthly data is the annualized monthly percentage increase i n deposiis. Net New Money is new deposits net of both withdrawals and interest. Data for S6JJ£ are for insured associations only, which represent 96% of industry total resource 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 L an Bank Boai;d. - March April May June July August J>/ September e/ 1,089 974 576 937 798 663 842 15.8 14.0 8.2 13.2 11.1 9.2 11.5 -- 3,091 2,704 1,814 2,849 3,432 2,232 2,447 20.5 17.6 11.7 18.2 21.5 13,7 14.9 1,250 TABLE 11: Mortgage Commitments at Selected Thrift Institutions DATE TOTAL OUTSTANDING COMMITMENTS | ALL MUTUAL | SAVINGS TOTAL SAVINGS & BANKS LOAN (N.Y. STATE) ASSOCIATIONS 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars, Sea sonally Adjusted) 1 - June July Aug. Sept. Oct. Nov. Dec. 15.9 16.2 16. 3 16.4 16.3 16.6 16.6 12.8 13.1 13.2 13.2 13.1 13.2 13.1 3.1 3.1, 3.1 3.2 3.3 3.4 3.6 1.31 .30 .12 .08 .02 .20 .09 1.26 .29 .14 -.07 -.05 .08 -.06 .05 .01 -.01 .14 .07 .12 .15 12 - Jan. Feb. Mar. Apr. May June July 17.0 18.3 19.5 20.5 21.7 21.7 22.0 13.3 14.2 15.2 16.0 17.1 17.2 17.5 3.7 4.1 4.3 4.5 4.6 4.5 4.5 .30 1.34 1.19 , .99 1.22 .56 .40 .12 .97 .97 .79 1.13 .48 .34 .18 .37 .22 .20 .09 -.08 -.06 l 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. , TABLE 12: Net Change in Mortgage Holdings DATE TOTAL INCLUDING FNMA-GNMA 1 FINANCIAL INSTITUTIONS,. LIFE ! MUTUAL ISAVINGS &| SAVINGS TOTAL COMMERCIAL LOAN | INSURANCE BANKS BANKS I ASSOC. , COMPANIES I | | FXXA Not Seasonally Adlusted 1968 1969 1970 1971 1972 - May r/ June r/ July r/ Aug. Sept, 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 n, a. n.a. 4 ,674 5 ,692 4 ,717 n. a. n.a. 1 ,500 1 ,600 1 ,500 1 ,600 1:,400 2,787 2,682 1,845 3,938 454 585 380 n. a. n.a. 9 ,350 9 ,561 10 ,172 24 ,160 2 ,720 3;,453 2.,758 3:,305 n.a. 2 ,508 4 ,375 4 ,909 • 2,388 2 ,459 2 ,052 2 ,348 1 ,221 24 54 79 n. a. n.a. i j 284 50 155 368 n.a. Seasonally Adlusted 1971 - Aug. Sept, Oct. Nov. Dec. 1972 - Jan. Feb. Mar. Apr. May r/ r/ r/ r/ r/ r/ July r/ Aug. Sept. l 4.,295 4,,021 3.,747 3,,745 ,323 - 4, 3.,783 3,,555 3j,357 3,,443 4,,081 1 :,001 999 974 843 824 400 306 329 465 522 2.,252 2,,122 1,,977 ,058 2j 2 3,357 130 128 77 77 378 512 466 390 302 242 3, 323 3,•715 4, 408 4, 357 4, 914 5, 324 4, 780 n.a. n.a. 3, 174 3,465 4, 297 4, 358 4, 539 5, 205 4, 636 n.a. n.a. 1.,088 1, 154 1, 261 I, 384 1,461 1, 514 1,477 1, 501 1, 202 272 296 486 390 455 533 365 n.a. n.a. 1,,813 2, 042 2, 571 2, 506 2, 571 3, 067 2, 693 3, 166 n.a. 1 -27 -21 78 52 91 101 n.a. n.a. 149 250 111 -1 375 119 144 353 n.a. Monthly data for commercial banks based on Federal Reserve estimates benchmarks 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 Liu- Insurance and, through August 1968, the Federal National Mortgage Association, and therealter bv 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 1971. TABLE 13: Net Increases in Mortgage Debt Outstanding Billions of dollars, SAAR TOTAL RESIDENTIAL 3 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 II III IV 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 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 Ie He 56.7 57.7 41.5 42.8 32.2 33.4 9.3 9.4 13.0 12.8 22.2 22.3 2.2 2. 1 QUARTER 1.5 1.5 2. 1 2.2 „ mm*## ° n i y - - - - - ? - * TABLE 14: FNMA Weekly "Auction" Results WEEK ENDED May COMMITMENTS IN '$ MILLIONS IMPLICIT YIELD 2 (per cent) ACCEPTED 901-YEAR 1 1 -YEAR] TOTAL TOTAL 6906& OVER OFFERED DAY M0NTH & OVER DAY M0NTH 30 133.4 76.4 76.4 June 12 26 83.5 97.8 48.1 76.6 48.1 76.6 July 10 24 134.6 123.9 92. 1 113.0 Aug. 7 21 106.2 114.6 Sept. 5 18 -- 7.62 -- -- 7.62 7.62 -- -- 92.1 113.0 -- 7.62 7.62 81.7 87.2 81.7 87.2 -- 7.63 7.62 -- -- 220.6 295.9 151.2 148.1 151.2 148.1 7.63 7.65 -- Oct. ' 2 352.8 11 271.2 211.5 224.9 211.5 224.9 -- — -- __ 7.69 __ __ 7.72 -- -- 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. 21 TABLE 15: Private Housing Starts and Permits STARTS DATE - September October November December SEASONALLY ADJUSTED ANNUAL RATE TOTALJI -FAMILY 2 OR MORE TOTAL 2,029 2,038 2,228 2,457 173.8 179.7 176.4 152.1 1,172 1,155 1,242 1,347 857 882 985 1,110 UNADJUSTED TYPE OF FINANCING FHA VA OTHER 48.3 38.5 47.2 85.4 8.7' 8.1 9.1 7.4 116.8 133.1 120.1 59.3 ...BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 1,944 1,983 2,051 2,142 106.0— r 2,204 7.5 150.9 37.4 1,071 1,415 2,487 2,056 8.0 117.8 153.6 27.8 1,357 1,325 2,682 2,007 155.7 205.8 37.7 10.5 1,067 2,369 1,302 1,991 172.9 29.1 8.5 213.2 942 2,109 1,167 186.1 1,955 32.4 9.4 227.9 1,006 1,344 2,350 184.8 . 2,121 31.9 9.6 226.3 1,296 1,034 2,330 2,108 169.4 26.2 9.4 205.0 July r / 929 1,289 2,218 2,237 188.1 9.8 August r/ 228.2 * 30.3 1,057 1,396 2,453 2,252 974 --1,378 September p/ 2,352 — 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. - January February March April May 1 22 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES 30-year CONVENTIONAL MORTGAGES 3 1 SPREAD BESPREAD BETWEEN NEW TWEEN YIELDS . YIELDS OX NEW ISSUE 1 ON C0NV. & ! CORPORATE BONDS Aaa FHA MORT- • UTILITY ; AND 4 GAGES 5 ! FHA MORTGAGES 6 1970 - High Low 9.29 8.40 8.60 8.30 -.10 -.74 1971 - High Low 7.97 7.32 7.95 7.55 1971 7.62 7.59 7.49 7.46 7.45 7.50 7.53 7.54 7.54 7.55 7.56 Nov. Dec. 1972 - Jan. Feb. Mar. Apr. May June JulyAugust September 1 i 9.43 7.72 .37 .70 .28 . -.19 8.26 7.02 .52 -.36 7.75 7.70 . 13 .11 7.38 7.28 .24 . 31 7.60 7.60 7.55 7.60 7.60 7.60 7.65 7.65 7.70 .11 . 14 . 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 Neither mortgage nor bond yields include allowance for servicing costs which a n 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 tintable . 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 ]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 mortvagos 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. TABLE 17: Conventional Mortgage Terms NEW HOMES CON- FEES & TRACT CHARGES EFFEC- MATURITY RATE (PER (YEARS) TIVE (PER CENT) RATE CENT) 2 3 1 LOAN/ PRICE RATIO (PER CENT) LOAN AMT. ($000) 1 EXISTING HOMES CON- FEES & T.OAN / TRACT CHARGES EFFEC- MATU- PiUCI- ' L O A N (PER RATE TIVE RITY RATIO 1 AMT. (PER CENT) RATE (YEARS) (PER ; ($000) CENT) 2 CENT)J 3 7.51 7.60 7.67 7.68 7.65 7.62 0.90 0.84 0.97 0.97 0.87 0.93 7.66 7.74 7.83 7.84 7.79 7.77 26.3 26.2 25.8 26.4 26.7 26.6 74.5 73.9 75.3 75.5 75.4 74.5 27.1 26.5 25.9 26.3 27.3 26.5 7.50 7.58 7.63 7.62 7.56 7.51 0.75 0.76 0.78 0.79 0.79 0.78 7.63 7.71 7.76 7.75 7.69 7.64 24.2 24.5 24.2 24.1 24.6 24.6 74.5 74.2 74.5 74.2 74.6 74.6 23.2 23.5 22.5 22.9 23.2 23.9 7.62 7.45 7.38 7.38 7.40 7.41 7.43 7.45 7.42 0.95 1.02 0.84 0.83 0.84 0.85 0.83 7.78 7.61 7.52 7.51 7.53 7.55 7.56 7.59 7.56 26.5 27.0 27.2 27.2 27.2 27.2 27.2 27.5 27.3 75.0 76.5 76.2 76.0 76.2 76.5 77.0 77.5 77.6 27.6 27.8 28.2 28.5 28.5 27.8 7.45 7.35 7.31 7.30 7.33 7.36 7.37 7.39 7.40 0.82 0.79 0.77 0.78 0.77 0.78 0.83 7.58 7.48 7.44 7.42 7.46 7.49 7.50 7.52 7.53 24.7 25.4 25.1 25.2 25.2 25.5 25.6 26.3 26.1 74.7 75.8 75.6 75.3 75.4 76.1 76.2 76.5 76.6 24.1 24.8 24.4 24.9 24.6 25.2 25.2 25.4 24.7 0.86 0.86 28.2 27.9 27.7 0.81 0.82 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 avail ah ltsomewhat 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.
@FedFRASER