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DECONTROLLED AFTER SIX MONTHS

APR
L.5.8 Confidential IF.R.)/

?9

1973

CAPITAL
MARKET
DEVELOPMENTS

C a p i t a l M a r k e t s Section, D i v i s i o n of R e s e a r c h and S t a t i s t i c s ,
Board of Governors of the F e d e r a l R e s e r v e 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
n o.

Revised
Not available




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

1973 - Mar.

2
9
16
23
30

Apr.

6
13
20

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa
7.25
7.27
7.29
7.31

——

7.52
7.45
—

--

7.51

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
20
100
234
88
n.a.
270
84
n• 3•
465
100
n. 3. •
110
94
n.a.
139
83
70

7.27
7.25

—

90
100

?
WEEK ENDING:

MOODY'S
NEW ISSUE
Aaa

YIELDS
BOND BUYER
SEASONED 20
BOND INDEX

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END
OF WEEK
OFFERINGS

BONDS SCHEDULED
WITHIN 28 DAYS

1973 - Mar.

2
9
16
23
30

5.00
5.05
5.10
5.10
5.10

5.22
5.27
5.34
5.35
5.26

366
483
631
703
399

77
78
82
81
94

1,552
1,419
1,344
1,043
777

Apr.

6
13
20

5.05
4.85

5.22
5.07

304
657
277

90
93

941
1,020

1 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).
2 Millions of dollars unless otherwise indicated.
Note:

Set- footnotes to Table 3




tr
TABLE 2: Details on Inventories
AMOUNT 1
(MIL. $)

1
|
I

DATE
OFFERED

|
1

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
RATING AND
ORIGINAL
YIELD CALL PROTECTION
COUPON
ISSUER

ESTIMATED PROPORTION SOLD

NONE

DATE
OFFERED | RELEASED

r.nRPORATF. BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED .
ISSUER
| COUPON
YIELD
AMOUNT

NONE

DATE
1973 - Mar.

16
23
30

Apr.

6
13

INVENTORIES 1
MUNICIPALS
BLUE LIST
I
IN SYNDICATE
142
740
168
670
63
587
55 4r
558

55
56

CORPORATES
IN SYNDICATE
44
12
6
4
Oe

N.C. - No call protection.
1
All figures in millions of dollars. Blue List is daily average for v.eck ended Friday, except for latest week
vhich i = daily average of three days ended Wednesday. All other figures are as of Fridav.
<




TABLE 3: High Grade Bond Yields
U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

DATE

NEW
CORPORATE
Aaa 1

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)

1973 - High
Low

7.52 (3/16)
7.29 (1/21)

7.31 (3/30)
7.11 (1/5)

6.93 (3/16)
6.42 (1/5)

5.35 (3/22)
5.03 (1/12)

MOODY'S SEASONED
CORPORATE
Aaa 2

1973 - Mar.

23
30

7.45

7.31
7.31

6.92
6.88

5.35
5.26

Apr.

6
13

7.51

7.27
7.25

6.87
6.84

5.22
5.07

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 bonds included is
22-24 years.
3
Weekly average of daily figures.
4
Thursday figures. The average rating pf 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

PERIOD
1973

1

STATE AND LOCAL 2

1972

1971

3,205
3,369
3,229

3,115
3,000
6,075

April
May

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

2,235
2,175e

1973

1972

1971

1,902
1,445
2,270

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

'
,

1

5,617

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)

OUARTKR
OR
MONTH

TOTAL

"1972 - I
II
III
IV

9, 805
11, 214
9, 195
10,564

GR OSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND
BONDS
MEMO:
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
PLACED
STOCK
OFFERED
FOREIGN I CONVERTIBLE
5,361
2,851
1 593
74
511
4,634
2 781
3,798
245
449
4,192
1 867
3,136
57
836
4,158
3 147
3,258
245
428

GROSS PROCEEDS BY
TYPE OF ISSUER

MFG.

PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS1

1 ,525
2 ,109
1 ,629
1 ,398

2,261
3,495
2,680
2,934

,476
1,
,369
1,
856
1,
,079

4,541
4,240
4,030
5,151

1972 - Jan.
Feb.
Mar.

3, 205
3,369
3, 229

1,767
1,907
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

3, 275
,598
3,
,341
4,

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.

,582
3,
,893
2,
,720
2,

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.
,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

195
700

1,050
850

14
n.a.

79
10

138
250

896
850

31
100

1973 - Jan. , 2 ,235
Feb.S
2 ,175

1

989 •
625

Other issuers are extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are available.




.

1,168
975

J

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury)1
April 1 through Ap

ISSUER
Con. Light & Power
Continental Bank
Commercial Credit Co.
Louisville Gas & Elec.
Cabot, Cabot & Forbes Land Tr.
Union Commerce Corp
NJB Prine Investors
Metropolitan Edison




TYPE 2
1st mtge
Notes\
Notes'
Pref stk
Bonds
Bonds
Bonds
Pref stk

AMOUNT
(MILLIONS
OF
DOLLARS)
50.0
25.0
50.0
21.9
25.0
20.0
25.0
25.4

MATURITY
2003
1983
1993
—

1981
1998
1980
—

COUPON
RATE OR
NET INTEREST COST
7.63
7.50
7.75
7.45
8.50
7 7/8
7.00
8.12

OFFERING
YIELD
7.58
7.61
7.80
7.30
8.50
7.95
7.00
8.00

MOODY'S
RAT INC,
AA
A
---—

TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury)'
April 1 through April 13, 1973
COUPON
RATE OR
MOODY'S
OFFERNET INTERi,;
;<
RATING
EST COST
YIELD

AMOUNT
(MILLIONS
OF
DOLLARS)
Jacksonville Elec. Auth, Fla.
Connecticut, State of
Tacoma, Washington
Buffalo, New York
Ohio, State of
Orange Co., Fla.
LLehigh Co. Ind. Dev. Auth
Lehigh Co. Ind. Dev. Auth
Wisconsin
Wisconsin
Memphis, Tenn.
New Mexico
New Mexico
San Francisco Muni.
New York City
New York, New York
Md. Health & Higher
Md. Health & Higher
Mass. Port Auth
Mass Port Auth
Murray State Univ.,

RR. Imp.

Ed. Fac.
Ed. Fac.

Ky. Bldg




Rev.

45.0

G.O.
Rfg. Rev.
G.O.
G.O.
Swr-Rev.

68.0
24.3
22.9
40.0
10.8

Poll. Cont.
Rev.
3.5
Poll. Cont.
Rev,
. 24.5
G.O.
6.5
G.O.
30.0
G.O.
25.0
G.O & Rev. 9.0
G.O & Rev. 2.0
Corp.Rev.
10.8
G.O.
224.8
G.O.
60.6
Auth.Rev.
10.1
Auth. Rev.
13.4
Rev.
74.0
Rev.
33.0
Ref
11.8

1980-1990
2001
1974-1993
1982-2007
1974-1999

1977-1983
2003
1974-2003
1974-1993
1973-1993
1975-1978
1974-1994
1974-1987
1974-2013
1976-1987
2003
2012
1976-1998
1982-2000

Aa

4.87
5.49
4.99
4.88
5.52.

4.50-5.00
5.35
4.00-5.05
4.80-5.65
4.15-5.50
4.00-5.30
4.20 5.80

--

4.50-4.88

A

6.25
5.03
4. 66
4.72
4.21
4.22
4.83
5.10

6.25
3.90-5.30
3.90-5.00
3.80-4.90

A
Aa
Aa
Aa
Aa
Aa
Aa
A
A
A
A
A
A
Baa

5.29

--

5. 64

4.00-4.15
4.00-5.00
4.25-5.30
4.25-6,20
.4.50-5.40
5.70
4. 60-5. 50

5.86

5.00-5.88

--

4r -

Aaa
A-l
A
Aaa
Baa

TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury)1

1
ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

April 1 through April 13, 1973
COUPON
RATE OR
MOODY'S
OKKERNET INTERINC
RATING
EST COST
YIELD

Other
Farmers Home Admin.
Farmers Home Admin.
Province of Quebec

Notes
Notes
Debs.

300.2
200.9
100.0

1978
1977
2003

7.20
7.50

7.20
7.58

——

* tiights 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 gem-rat 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 non-quaranteed issues by Feder.il Agencies.




11
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
As of Anril 1. 1973

ISSUER

TYPE

State and Local
Gulf Coast Waste Disposal Auth,
Tex.
^Seattle, Washington
Los Angeles Co, Calif Flood
Cont. Dist.
Georgia Education Auth
^United Nations Dev. Corp
Sacramento Muni Ut. Dist. Calif.
^Georgia Education Auth.
Virginia Public Sch Auth.
}•'Houston, Texas
ILacygne, Kan.
Los Angeles Reg Arpts. Corp, Cal
Prince George's Co, Md. Poll.
Cont.
Pensacola, Fla
Washington
California
Pinellas Co, Fla
San Jose USD, Cal.
New Orleans, La.
Los Angeles, Calif Dept of
Wtr & Pwr e

*
i
2

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

' Rev.
G.O.

25.0
12.0

Apr.
Apr.

16
16

G.O.
Rev.
Elec rev.
30.0
Rev.
Rev.
Rev.
Rev.

22.0
30.4
54.3
50.0
30.0
15.2
25.0
30.0
25.5

Apr.
Apr. Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.

17
18
18
18
18
24
25

Rev.
Rev.
G.O.
G.O.
Rev.
G.O.
G.O.

25.0
12.5
10.0
25.0
13.0
13.0
18.0

Apr.
Apr.
Apr.
May
May
May
May

Rev.

47.0

.

1
1
16
16
6

Included in table for first time.
Includes corporate and other issues of S15 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.




22

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
(continued)
. •
. .,

ISSUER
Great American Mortgage Inv.
Citizens Mortgage Trust
Philadelphia Electric
Ryder System Inc.
Bell Tele of Pa.
Alison Mtge Investment Tr.
Industrial National Co.
Washington Water Pwr Co.
Tucson Gas & Elec.
Tucson G & E
Instrument Systems Corp
San Diego G & E
Wickes Corp
GTE of Michigan
Investors Realty Trust
•'Ford Motor Credit Co.
'Ford Motor Credit Co.
Mid-Continent Tele. Corp
Cousins Mtge & Equity Inv.
Gulf Power
~"
~
Toledo Edison
Hartford Elect Co.
General Public Utilities
Baltimore Gas & Elec.
*Dayton Pwr & Light
Public Service Colo.
*Columbus & Southern Ohio E.
Consolidated Edison Co. of N.Y
Walter Kidde & Co.
Continental Illinois Corp




TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

25.0
Bonds
20.0
Bonds
Com stk
48.4
Bonds
50.0
Bonds
175.0
25.0
Bonds
20.0
Bonds
20.0
Bonds
Bonds
40.0
Pref stk
15.0
25.0
Bonds
30.0
Pref stk
60.0
Debs
20.0
1st mtge
Bonds
15.0
Debs
75.0
75.0
Notes
18.0
Pref stk
Bene. Int
47.7
Bonds
25.0
22.5
Com stk
40.0
Bonds
Com stk (rts) 83.0
45.0
Com stk
Pref stk
25.0
Bonds
50.0
25.0
Conv'.
120.0
Com stk
Debs
65.0
Bonds
100.0

APPROXIMATE DATE
OF OFFERING
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.x
Apr.
Apr.
May
May
May
May
May
May
May
May
May
INDEF
INDEF

17
17
17
18
24
24
24
24
25
25
25
25
26
26
26

1
1
2
3
8
9
10
16

13
Table 8

STOCK PRICES AND VOLUME
STOCK PRICES 1 '

TRADING VOLUME *

DATE
3

NYSE I N D E X '

1971 - High
Low

57.76 (4/28)
48.73 (1/4)

1972 - High
Low
1973 - High
Low
1973 - Mar.

Apr.

AMEX 4 -

D J . INDUSTRIALS

950.82 (4/28) 26.68 (4/28)
797.97 (11/23 )22.72 (1/4)

NYSE

AMEX

22.1 (2/12)
11.0 (9/17)

6.7 (2/5)
2.7 (8/13)

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)

65.48 (1/11) 1051.70 (1/11) 26.70 (1/8)
56.85 (3/26) 922.71 (3/23) 24.05 (4/5)

20.4 (1/12)
12.4 (4/6)

4.8 (1/12)
2.7 (3/16)
4.0
2.9
2.7
3.1
2.8

2
9
16
23
30

60.17
61.02
60.75
58.15
59.58

961.32
972.23
963.05
922.71
951.01

24.68
24.88
24.71
24.17
24.41

17.2
16.0
14.2
15.5
15.6

6

|58.23
59 65

931.07
959.36

24.06
24.18

12.4
15.2

13

1.

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

2.9
3.1

Figures other than highs and lows are Fridays only.
Highs and lows are for the year and are not necessarily for Fridays.

2.

.

January 3, "l969.
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

*

Ill
TABLE 9: Security Credit

END OF PERIOI
Outstanding:
1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1973 - Jan.
Outstanding
Changes:
1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1973 - Jan.

1
2
3

4

CREDIT EXTENDS! TO
MARGIN CUSTOMERS BY:
BROKERS 1 j BANKS 2 | TOTAL
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

CUSTOMERS'
NET DEBIT
BALANCES

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)

NET CREDIT
CUSTOMERS' NET EXTENDED BY
FREE CREDIT
BROKERS AND
DEALERS 3
BALANCES
(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
2,296

----

——
.--——

——
---

268
54
-30
-53
-129
-99
14
-128
-61
41
121
99
21

__
-—

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 carry: n. secu;:
rities 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.
NOT I : With the exception of bank loan data, figures are supplied bv th'- 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; hank
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)
MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
NEW
ANNUAL
MONEY 2
GROWTH
NET
FLOW
RATE 1

SAVINGS & LOAN ASSOCIATIONS
SHARE CAPITAL
NET
NEW
ANNUAL
NET
MONEY 2
GROWTH
1
FLOW
RATE

1969
1970
1971
1972

2,549
4,517
9,621
9,788

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

1972 - January
February
March

855
931
1,507

1973 - January
February^./
March®/

766
551
1,075

DATE

1
2
3

-—

925
780
761
902

12/6
10.5
10.2
12.0

808
465
1,900

10.6
6.1
10.5

1972 - September
October
November
December
1973 - JanuaryP/
February^./
March®/

4.0
6.8
13,5
12.0

-763
936
5,678
5,397

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
MONEY 2

3.4
7.7
17.5
17.0

-1,766
6,231
26,331
29,281

6,617
15,482
37,851
42,690

716
809
77-3

3,266
2,818
4,287

3,117
2,700
2,533

4,121
3,749
5,794

__
—

3,833
3,509
3,306

595
402

——
3,278
3,105
——
1,650
3,200
n a
Seasonally Adjusted
——
2,930
17.8
——
2,706
16.2
——
2,246
13.3
2,164
12.7
—

4,044
2,201
4/275

—•

3,700

3,855
3,486
3,007
3,066

16.2
14.5
12.3
12.5

4,026
1,580
550

4,834
2,045
2,450

19.4
8.1
9.5

--—
——

--

-"

.

23.3
9.0
7.0

-—

—

n a
———
——
—

_L
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.




\

---

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

OUTSTANDING COMMITMENTS
]
ALL
MUTUAL
1
SAVINGS
TOTAL
SAVINGS &
TOTAL'
BANKS
LOAN
(N.Y. STATE)
ASSOCIATIONS

1

NL1 CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollar 3, Seasonally Adjusted)r/
1971-Nov.
Dec.

16.6
16.6

13.2
13.1

3.4
3.6

1972-Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

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

l

|

.20
.09

08
-.06

.12
.15

.23
1.36
1.13
.89
1.04
-.26
.38
.71
1.06
-.36
.38
-.19

.12
1.01
.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

TOTAL 1/
INCLUDING TOTAL
FNMA-GNMA

FINANCIAL INSTITUTIONS
LIFE
MUTUAL
SAVINGS &
INSURANCE
SAVINGS
COMMERCIAL
LOAN
COMPANIES
BANKS
BANKS
ASSOC.
Not Seasonally Adjusted

1972 - Jul;
Aug
Sepi
Oct
Nov
Dec
1973

4,717
5,563
4,918
4,684
4,984
5,811.

Jan
Feb

1972 - Jan
Feb
Mar
Apr
May

1973

4,872
5,931
5,286
4,779
5,114
5,943

19,699
16,827
39,259

July
Aug
Sept
Oct
Nov
Dec
Jan
Feb

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

5,404
2,462
9,940

2,682
1,845
3,938

9,561
10,172
24,160

2,052
2,348
1,221

1,500
1,600
1,400
1,400
1,500
1,000

438
553
502
472
517
598

2,758
3,313
2,926
2,673
2,712
3,101

79
97
90
139
255
1,112

900
900

24,074
21,736
41,647

1969
1970
1971

458

Seasonally Adjusted
1,112
290
1,178
315
1,264
464
1,361
400
1,434
453
1,489
' 516
1,451
472
1,477
515
537
Ll,155
1,393
484
1,524
513
1,164
525
1,112
475
1,079
n.a.

162

1,871
2,075
2,596
2,481
2,567
2,959
2,678
3,108
2,911
2,726
2,876
3,130
n.a.
n.a.

-23
-18
5
85
67
96
101
79
111
135
299
782
219

_L
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
an!, through August 1968, the Federal National Mortgage Association, and therea l r 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 seriesf 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.




TABLE 13: Net Increases in Mortgage Debt Outstanding
Billions of dollars, SAAR 1- to 4- MULT IFAMILY
FAMILY

MULTI-AND
COMMERCIAL

TOTAL

RESIDENTIAL3

- I
II
III
IV

27.9
26.4
25.6
29.9

19.4
18.2
17.3
20.4

16.2
15.0
13.6
16.5

3.1
3.2
3.5
3.9

6.4
6.0
6.5
7.4

9.4
9.2
10.2
11.2 „

2.3
2.2
1.8
1.9

- I
II
III
IV

31.7
29.1
25.7
25.6

23.8
21.5
18.7
18.5

19.4
16.8
14.0
13.1

4.4
4.6
4.7
5.4

6.0
5.4
5.3
5.3

10.4
10.1
10.0
10.7

2.2
2.2
1.7
1.4

- I
II

20.9
22.8

14:4
16.8

32.2

5.0
5.2
A "
3
6 .6

4.8
4.6

IV

9.4
11.6
15 .0
16 .2

6.8

9.8
9.9
11.4
13.4

1.5
1.5
—2-rl
2.2

QUARTER

•

COMMERCIAL

FARM

- I
II
III
IV

37.7
47.4
52.3
54.9

27.3
36.0
38.9
40.7

19.2
26.5
30.1
31.9

8.0
9.4
8.8
8.9

8.1
9.5
11.1
11.0

16.0
19.0
19.9
19.9

2.2
2.3
2.3
2.5

- I
II
III
IV

61.8
64.1
64.3
67.2

45 .4
47.1
46.4
49.1

35.9
37.5
36.2
39.4

9.5
9.6
10.2
9.8

14.5
15.2
14.9
14.6

23.9
24 . 6
25.3
24.3

2.6
2.6
2.9
2.6

1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration,
Veterans Administration and Comptroller of the Currency. Separation of non• farm mortgage debt by type of property, where not available, and interpolations
and extrapolations, where required, estimated mainly by Federal Reserve.
2 May differ somewhat from related flow of funds series mainly because of more
aggregative type of seasonal adjustment.
3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




TABLE 14: FNNIA Weekly "Auction" Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD 2 (per cent)
ACCEPTED
1-YEARN
TOTAL
90TOTAL
901-YEAR 1
66OFFERED
M0NTH & OVER
& OVER
DAY
DAY
M0NTH

1972 - Oct.

2
16
30

352.8
271.2
186.4

211.5
224.9
162.7

211.5
224.9
162.7

7.70
7.73
7.74

Nov.

13
27

78.7

49.2

36.2

49.2
36.2

7.72
7.70

Dec.

11
26

82.2
108.7

42.4
66.3

42.4
66.3

7.68
7.69

8

74.2
107.0

61.3
92.1

61.3
92.1

7.69
7.70

20

128.7
110.3

65.4
71.6

65.4
71.6

7.71
7.73

5
19

170.8,
297.3

107.7
168.7

107.7
168.7

2

234. 6"

145.9

145.9

7.75
7.81
7.86

60.8

22!

5

Apr.

i

Note: Average secondary market yields are gross--before 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
TABLE 15: Private Housing Starts and Permits
STARTS
DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY

UNADJUSTED
TYPE OF FINANCING
FHA VA
OTHER

_L

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

1972 - January
February
March
April
May
June
July
August
September
October
November
December

2,439
2,540
2,313
2,204
2,318
2,315
2,244
2,424
2,426
2,446
2,395
2,369

1,395
1,281
1,310
1,215
1,308
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

150.9
153.6
205.8
213.2
227.9
226.3
207.5
231.0
204.4
218.2
187.1
150.5

36.1 7.5
27.8 8.0
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

1973 - January
February

2,496
2,444

1,449
1,361

1,047
1,083

147.1
138.8

12.0

6.8
6.8

126.3

2,218
2,155

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.
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
FHA
MORTGAGES
DATE

30-year

2

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 5

1971 - High
Low

7.97
7.32

7.95
7.55

.28
-.19

1972 - High
Low

7.57
7.45

7.70
7.55

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

1973 - Jan.
Feb.

7.55
7.56

1

2

3

4
5
6

1

NEW
ISSUE
Aaa
UTILITY
4
^

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES 6

8.26
7.02

.52
*.36

.14
.06

7.40
7.09

.61
.05

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
.95
.15
.22
.16
.18
.16
.19
.61
.55

7.70
7.75

.15
, , 19

7.38
7.40

.32
.35

Neither mortgage nor bond yields include allowance for servicing costs which are
much higher for mortgages than for- bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
Based on FHA-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 1961--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

DATE

1972
Jan.
Feb.
, Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
;
Nov.
Dec.
1973
Jan. r/
Feb. j>/

1

NEW HOMES
1
CON- FEES &
TRACT CHARGES EFFEC- MATURITY
RATE
(PER
TIVE 1 (YEARS)
(PER
CENT) RATE |
CENT)
2
3
1

1

EXISTING HOMES
CON- FEES &
LOAN /
LOAN /
TRACT CHARGES EFFEC- MATU- PRICE
PRICE LOAN
(PER
RATIO AMT.
RATE
TIVE
RITY RATIO
CENT) RATE (YEARS) (PER
(PER ($000) (PER
CENT)
CENT)
CENT)
2
3

LOAN
AMT.
($000)-

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
0.79
0.77
0.78
0.77
0.78
0.83
0.81
0.83
0.84
0.84
0.86

7.58
7.48
7.44
7.42
7.46
7.49
7.50
7.52
7.55
7.57
7.58
7.59

24.7 74.7
25.4 75.8
25.1 75.6
25.2 75.3
25.2 75.4
25.5 76.1
25.6 76.2
26.3 76.5
26.2 76.5
26.1 76.3
26.3 76.8
26.4 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

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

26.1
26.4

77.0
77.4

25.6
25.4

•
*

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-:n 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.




I


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102