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DECONTROLLED AFTER SIX MONTHS

WOOuial
L . 5 ^ Confidential ( F . R . )

A p r i l 23, 1973

CAPITAL
MARKET
DEVELOPMENTS

Capita! Markets Section, Division of Research and Statistics,
Board of Governors of the Federal Reserve System, WashingtolllllMl 1




^

INDEX
Developments in the Corporate and Municipal Bond Markets
Capital Market Y i e l d s
Capital Market Volume
Stock Market
Mortgage Market

SYMBOLS:

e

Estimate

p

Preliminary

r

Revised

n o.

Not available




TABLE 1: Yields, Volume and Reception

WEEK ENDING:
1973 - Mar.

2
9
16
23
30

Apr.

6
13
20
27

WEEK ENDING:

YIELDS
MOODY'S
SEASONED
NEW ISSUE1
Aaa
--

7.52
7.45

7.25
7.27
7.29
7.31

--

--

7.51

7.27
7.25
7.25
n.a.

—
——

n.a.

2
9
16
23
30

5.00
5.05
5.10
5.10
5.10

6
13
20
27

5.05
4.85
4.90
n.a.

5.22
5.07
5.17
n. a.

90
100
100
n.a.

'

n.a.
n.a.
n.a.
n.a.

MUNICIPAL BOND MARKET
VOLUME-2
GROSS
OFFERINGS

PER CENT
SOLD BY END
OF WEEK

366
483
631
703
399

5.22
5.27
5.34
5.35
5.26

Apr.

1

139
83
70
500e

YIELDS
BOND BUYER
MOODY'S
NEW ISSUE
SEASONED 20
Aaa
BOND INDEX

1973 - Mar.

CORPORATE BOND MARKET
VOLUME; 2
PER CENT
I
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
1 WITHIN 28 DAYS
20
n.a.
100
234
88
n.a.
270
84
465
100
110
94

77
78
82
81
94

304
657
286
235e

90
93
n.a.
n.a.

BONDS SCHEDULED
WITHIN 28 DAYS
1,552
1,419
1,344
1,043
818
701
519
433_

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:

Sec footnotes to Table 3




\

T A B L E 2: Details on Inventories

DATE
OFFERED

CORPORATE BONDS IN SYNDICATE END OF LATEST WFRK
[ORIGINAL 1 RATING AND
ISSUER
COUPON | YIELD |CALL PROTECTION

AMOUNT 1
(MIL. $)

I ESTIMATED PRO1 PORTION SOLD

NONE

OFFERED

DATE
| RELENSlT

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER
YIELD IN YIELD CALL PROT. PORTION RELEASED

AMOUNT

NONE

INVENTORIES '
DATE

MUNICIPALS

30

April

BLUE LIST
670
587

IN SYNDICATE

554
618r
705

1973- ~Mar~. T~3

CQRPORATES

•55
56
105

168
63

IN SYNDICATE
12

6
4
0
0

- No call protection.
All

figures in millions of dollars

Blue Lis

•hich i, U.nily average of three day. ,nd,d
/ •




of

Friday.

f

"

U t

"<

T A B L E 3: High Grade Bond Yields

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS4

7.71 (8/12)
7.06 (2/12)

6.51 (6/18)
5.69 (3/23)

6.23 (6/23)
4.97 (10/21)

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)

7.52 (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)

23
30

7,45

7.31
7.31

6.92
6.88

5.35
5.26

6
13
20

7.51

7.27
7.25
7.25

6.87
6.84
6.84

5.22
5.07
5.17

DATE

NEW
CORPORATE
Aaa 1

1971 - High
Low

8.26 (7/30)
7.02 (2/5)

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

1

--

--

MOODY'S SEASONED
CORPORATE
Aaa 2

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 of the 20 bonds used in this index"
! falls midway between the four top groups as classified by Moody's Investors Service.
Note--Highs and lows are for individual series and may be on different dates
for different series.




6

T A B L E 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
Un millions of dollars)

GROSS PROCEEDS
PERIOD

1
1

!

CORPORATE i
1973

STATE AND LOCAL 2

1972

1971

1973

1972

1971

3,205
3,369
3,229

3,115
3,000
6,075

1 ,902
1,445
2 ,270

1,776
2,005
2,239

2,732
1,851
2,258

April
May
June

3,275
3,598
4,341

4,042
3,300
4,375

1,989
2,017
2,270

1,891
2,167
2,013

July
August
September

3,582
2,893
2,720

4,147
2,532
3,768

1,805
1,966
1,726

1,989
1,903
2,098

•October
November
December

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

'

2,235
2,175e
4,050e

January
February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

8,460e
j

5,617

!
!

Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.




:

:
1

.
;
j

1

TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

QUARTER
OR
MONTH

TOTAL

1972 - II
III
IV

11,214
9,195
10,564

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND
BONDS
MEMO:
PUBLICLY 1 PRIVATELY PFD.
ISSUES INCLUDED
MFG.
STOCK FOREIGN 1 CONVERTIBLE
OFFERED j PLACED
4,634
2,781
3,798
245
449
,109
2.
4,192
1,867
3,136
836
57
,629
1,
3,147
3,258
4,158
245
428
1.,398

GROSS PROCEEDS BY
TYPE OF ISSUER
COMMUNICATIONS

OTHER
ISSUERS1

3.
,495
,680
2,
2.
,934

1,
,369
856
1,,079

4,240
4,030
5,151

PUBLIC
UTILITY

1973 - I

8,460

2,714

2,845

2,900

n.a.

94

623

2;
,656

,116
1:

4,023

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
l,b58

Apr.
May
June

3,275
3,598
4,341

1,622
1,676
1,336

789
744
1,218

864
1,148
1,786

15
100
130

92
226
131

581
761
767

l,219
738
l,538

178
391
800

1,297
1,708
1,235

July
Aug.
Sept.

3,582
2,893
2,720

1,807
1,523
863

657 • 1,118
421
948
789
1,070

3
17
37

450
183
203

574
452
603

798
635
l,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

l,280
794
860

371
658
50

1,757
1,499
1,895

989
625
1,100

195
700
1,950

1,050
850
1,000

14
n.a.
n.a.

79
10
5

138
250
235

89.6
850
950

31
100
985

1,168
975
1,880

Oct.
Nov.
, Dec.

1973 - Jan. , 2,235
Feb.S. 2,175
Mar.e,' 4,050
1

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




T A B L E 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1

April 1 through April 20 , 1973
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
Citizens Mortgage Trust
Ryder System Inc.
Philadelphia Electric
Cousins Mortgage & Equity Inc.




TYPE 2
1st mtge
Notes
Notes
Pref stk
Bonds
Bonds
Bonds
Pref stk
Bonds
Bonds
Com stk
Bene. Int.

AMOUNT
(MILLIONS
OF
DOLLARS)
50.0
25.0
50.0
21.9
25.0
20.0
25.0
25.4
20.0
50.0
46.6
34.1

MATURITY
2003
1983
1993
——

1981
1998
1980
--

1990
1993
--

COUPON
RATI- OR
NET INTEREST COST

OFFERING
YIELD

MOODY':
RATING

7.63"
7.50
7.75
7.45
8.50
. 7/8
7
7.00
8.12
8 1/2
7.80

7.58
7.61
7.80
7.30
8.50
7.95
7.00
8.00
8.55
7.825

AA

-—
--

A
---—
-—
——

Baa

--

—

—

--

i

T A B L E 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1

I
ISSUER
Jacksonville Elec. Auth, Fla.

TYPE 2
Rev.

AMOUNT
(MILLIONS
OF
DOLLARS)
45.0

68.0
G.O.
Rfg. Rey. 24.3
22.9
G.O.
40.0
G.O,
Swr-Rev.
10.8
Poll. Cont.
Rev.
3.5
Lehigh Co. Ind. Dev. Auth
Poll. Cont.
Rev.
24.5
Wisconsin
G.O.
6.5
Wisconsin
G.O.
30.0
Memphis, Tenn.
G.O.
25.0 "
New Mexico
G.O & Rev. 9.0
New Mexico
G.O & Rev. 2.0
San Francisco Muni. RR. Imp. Corp.Rev.
10.8
New York City
G.O.
224.8
New York, New York
G.O.
60. 6
Md. Health & Higher Ed. Fac, Auth.Rev.
10.1
Md. Health & Higher Ed. Fac. Auth.Rev.
13.4
Mass. Port Auth
Rev.
74.0
Mass Port Auth
Rev.
33.0
Murray State Univ., Ky. Bldg.
Ref
11.8

Connecticut, State of
Tacoma, Washington
Buffalo, New York
Ohio, State of
Orange Co., Fla.
LLehigh Co. Ind. Dev. Auth




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

April 1
COUPON
|
RATE OR
| <)ITI:RNET INTER- ! IXC
EST COST
| YIELD

4.87
5.49
4.99
4.88
5.52

--

1974-1994
1974-1987
1974-2013
1976-1987
2003
2012
1976-1998
1982-2000

6.25
5.03
4.66
4.72
4.21
4.22
4.83
5.Id
-4r5.64

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

Aa

4.50-4.88

5.29

1977-1983
2003
1974-2003
1974-1993
1973-1993
1975-1978

MOODY'S
RATING

A

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

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

Aaa
A-l
A
Aaa
Baa-1

T A B L E 6:

Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury)'

ISSUER

TYPE

2

...

United Nations Dev Corp
United Nations Dev Corp
Georgia Education Auth
Georgia Education Auth
Sacramento Muni Ut. Dist, Cal.
Sacramento Muni Ut. Dist. Cal.
Los Angeles Co., Calif Flood
Control Dist
Los Angeles Co., Calif Flood
Control Dist
Seattle, Washington

G. 0.
G.O.
G.O.
Rev
Elec rev
Elec rev

April 1 through April 20, 1973
COUPON
I AMOUNT
1
1 CM1T, LIONS 1
: RATE OR
.
MOODY'S
I MATURITY 1NET INTEROF
• i.
;c
RAT IMG
:.
1 EST COST
1 vi i i u
L DOLLARS) 1
10.3
44.9
25.4
5.0
11.0
39.0

1977-1998
2023
1974-2013
1974-2013
1978-1992
2013

5.00
4.99
5.30
5.30

4,
.65-5.75
5.90
3,
,90-5.25
3,
.90-5. 25
.25-5.00
4,
5.34

A
A
Aa

G.O.

10.0

1974-2003

4.89

3,
.75-5.30

Aa

G.O.
G.O.

22.0
12.0

1975-1995
1975-2013

4.83
5.09

4,
.00-5. 00
3,
.90-5.
,35

. Aa
Aa

300.2
200.9
100.0
150.0

1978
1977
2003
1998

7.20
7.20

7.20
7.58

7.39

7.35

__

Aa
Aa

Other
Farmers Home Admin
Farmers Home Admin
Province of Quebec
T.V.A.

Notes
Notes
Debs
Pwr Bd

__

lights offering.
Includes corporate and other security offerings of $15 mi 11 ion
State and local security offerings of $10 .million and over.
In case of State and local government securities, ( , ( . denotes
'.)
• i I ..Mi
'<e v. - l t . , revenue obligations secured on 1 v by income from pubi1c ui i it i • s;
i
1
.
lt
Re v. -Q.-IIL . , revenue b Kids secured only by income from quasi -i n i t i
revenue bonds secured by revenue from specific taxes on 1v; Re
bonds secured solely by lease payments.
Includes foreign government and I nternat i cinal Bank for R e c o n s t r u c t i o n and
Development issues and non-quiranteed issues by Federal Agencies.




__

11
T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
.

ISSUER
Corporate
Bell Tel of Pa.
Bell Tel of Pa.
Alison Mtg Investment Trust
Industrial National Co
Washington Water Pwr Co
Ford Motor Credit Co
Ford Motor Credit Co
Tucson Gas & Elect
Tucson G & E
San Diego G & E
Wickes Corp
GTE of Michigan
Investors Realty Trust
Mid-Continent Tele Corp
Gulf Power
>
Instrument Systems Corp
Toledo Edison
Hartford Elect Co
General Public Utilities
Baltimore Gas & Electric
Dayton Power & Light
Public Service Colo.
^Mississippi Pwr
ColumbuS & Southern Ohio E.
*Columbia Gas
Consolidated Edison Co of N.Y.
Walter Kidde & Co
Continental Illinois Corp
Great American Mortgage Invest




TYPE

(continued)

AMOUNT
(MILLIONS
OF
DOLLARS)

Bonds
50.0
Bonds
125.0
Bonds
25.0
20.0
Bonds
Bonds
20.0
Debs
50.0
125.0
Notes
Bonds
40.0
Pref stk
15.0
Pref stk
30.0
Deb
60.0
1st mtg
20.0
Bonds
15.0
Pref stk
18.0
Bonds
25.0
Bonds
25.0
Com stk
22.5
Bonds
40.0
Com stk (rts) 83.0
Com stk
45.0
25.0
Pref stk
Bonds
50.0
15.0
Bonds
25.0
Com
50.0
Bonds
Com stk
120.0
. 65.0
Debs
Bonds
100.0
25.0
Bonds

Ag

20,

o f

1973

APPROXIMATE DATE
OF OFFERING
April
April
April
April
April
April
April
April
April
April
April
April
April
April
May
- May
May
May
May
May
May
May
May
May
May
May
INDEF
INDEF
INDEF

24
24
24
24
24
25
25
25
25
25
26
26
26
1
1
1
2
3
8
9
10
15
16
16

12'

T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)
.

ISSUER
State lndf Local
*DeKalb Co., Ga
Virginia Public Sch Auth
*Houston, Texas
Monroe Co., N.Y.
Alaska State Hsg Auth
^Virginia Beach, Va.
Lacygne, Kan.
Los Angeles Reg Arpts Corp,
Cal
Prince George's Co., Md.
Gulf Coast. Waste Disposal Auth,
Tex.
Pensacola, Fla
California
Pinellas Co., Fla
^Detroit, Mich.
*New Jersey Turnpike Auth
St. Paul, Minn.
Philadelphia, Pa.
San Jose USD, Cal.
New Orleans, La.
*Ohio Pub Fac Coram
Los Angeles Cal. Dept of Wtr &
Pwr

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

AMOUNT
(MILLIONS
OF
DOLLARS)

1973

APPROXIMATE DATE
OF OFFERING

15.0
15.2
25.0
15.9
13.0
10.6
30.0

April
April
April
April
April
April
April

25.5
25.0

April
April

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

25.0
12.5
25.0
13.0
17.5
210.0
10.9
53.2
13.0
18.0
40.0

April
April
May
May
May
May
May
May
May
May
May

Rev.

47.0

*

Rev
Poll cont rev

June

24
24
25
26
26
30

1
1
1
3
9
15
16
16
22
6

Included in table for first time.
.
Includes corporate and other issues of 515 million and over; State and local
Government issues of S10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.




13
Table 8

STOCK PRICES AND VOLUME
STOCK PRICES1'

TRADING VOLUME *

DATE
3

D J . INDUSTRIALS

NYSE INDEX '

1971 - High
Low

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

1972 - High
Low
1973 - High
Low

AMEX *

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

AMEX

NYSE

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)
889.30 (1/3) 25.61 (1/3)
56.23 (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)

1973 - Mar.

2
9
16
23
30

60.17
61.02
60.75
58.15
59.58

961.32
972.23
963,05
922.71
95 K 0 1

24.68
24.88
24.71
24.17
24.41

17.2
16.0
14.2
15.5
15.6

4.0
2.9
2.7
3.1
2.8

Apr.

6
13
20

58.23
59 65
59.59

931.07
959.36
963.20

24.06
24.18
24.07

12.4
15.2
13.2

2.9
3.1
2.7

1.

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

2.

NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Volume figures are daily averaged for the entire week,
(millions of shares).
Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or
In recent years, however abbreviated trading to the extent, and over the time
Hours/
Days/
From
Through:
Day •
Week
January 3, 1969.
July 7, 1969
January 2, 1970

July 3, 1969
December 31, 1969
May 1, 1970

3.

12/31/65 - 50

4.

Average dollar value of shares listed.




4
4-1/2
5

5
5
5

27-1/2 hours per week.
periods, shown below:
Hours/
Week
20
'22-1/2
25

.

Hi
TABLE 9: Security Credit

END OF PERIOD
Outstanding:
1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY
TOTAL
BROKERS1 j BANKS 2

Dec.

5 ,700
6 ,180
6,
,620
,010
7.
7,,200
,510
7.
,600
7,
7 ,780
:
,800
7,
,800
7:
,890
73
,900
7,

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
,690
8:
9:
,140
9.
,540
9.
,760
10,
,160
i o a ,350
10,
,560
10,
,630
10,
,660
10,750
10,340

1973 - Jan.

,700
7,

2,910

50
20
10
10
30
90
50
90
50
30

350
500
450
400
220
400
200
210
70
20
90
410

i

(4)

j

(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

10,610

300
480
440
390
190
310
150
120
20

'NET CREDIT
1
CUSTOMERS' ! CUSTOMERS' NET 1 EXTENDED BY
1
'BROKERS AND
FREE CREDIT
, NET DEBIT
j DEALERS 3
BALANCES ;
|
BALANCES
|

Nov.

(4)
(4)
(4)
(4)
(4)
(4)
(4)

Outstanding
Changes :

1972 - Jan.
Feb.
Mar.
Apr.
May

June
July
Aug.
Sept.
Oct.

1973 - Jan.

90
10
-200

--

" -420
470

270

|

(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

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 c a r r y : ^ entities other than U.S. governments."
The difference between customers' net debit balances and customers' net Lrw 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; bar^k
data includes loans for the purpose of purchasing or carrying any security, vhethvi
regulated or not.
Series discontinued


i i
i


i i i i

T A B L E 10: Savings Flows at IMonbank Depositary Intermediaries

($ millions)

DATE
f

MUTUAL SAVINGS BANKS
SAVINGS & LOAN ASSOCIATIONS
NET
REGULAR DEPOSITS 3
NET
SHARE CAPITAL
NEW
ANNUAL
NEW
ANNUAL
2
MONEY
GROWTH
NET
NET
MONEY2
GROWTH
1
1
FLOW
FLOW
RATE
RATE

1969
1970
1971
1972

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

4.0
6.8
13,5
12.0

1972 - January
February
March

855
931
1,507

--

1973 - January
February^./
March£/

766
551
1,070

h—

1972 - September
October
November
December

925
780
761
902

12.6
10.5
10.2
12.0

1973 - JanuaryP/
February^/
March*-/

808
465
550

10.6
6.1
7.0

1
2
3

-763
936
5,678
5,397
716
809
773
• 595
402
n a

-—
- --—

Not Seasonally Ad justed
4,068
3.1
-1,003
10,965
8.1
5,285
28,230
19.3
20,653
32,902
23,884
19.5
3,266
2,318
4,287

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW
6,617
15,482
37,851
42,690

3.4
7.7
17.5
17.0
__

3,117
2,700
2,533

4,121
3,749
5,794

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

4,044
2,201
4,270

16.2
14.5
12.3
12.5

4,026
1,580
1,900

4,834
2,045
2,450

19.4
8.1
9.5

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

__

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

NET
NEW
MONEY 2

—

23.3
9.0
10.5

——

-

3,833
3,509
3,306

-—

3,700
n•a •
-—
—*
---

——

Annual growth rate for monthly data is the annualized monthly percentage increase in deposit?.
Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
insured associations only, which represent 967, of industry total resources.
Regular deposits at mutual savings hanks exclude items such as Christmas club and ccrtain
escrow accounts, which represent a very small part of total deposits.
SOURCE: National Association of Mutual Savings Hanks and Federal llomv Loan Bank Board.




TABLE 11: Mortgage Commitments at Selected T r f I s i u i n
hit ntttos

TOTAL

DATE

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

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollar $, Seasonally Adjusted)r/
Nov.
Dec.

16.6
16.6

13.2
13.1

3.4
3.6

.20
.09

08
-.06

.12
.15

-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

.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

>

!

4

Rased 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

TOTAL y
INCLUDING
FNMA-GNMA

1972

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &| LIFE
LOAN
INSURANCE
SAVINGS
TOTAL COMMERCIAL
ASSOC.
COMPANIES
~ BANKS
BANKS

Jul;
Aug
Sepj:
Oct
Nov
Dec

1972 - Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1973 - Jan
Feb

I

2,052
2,348
1,221

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

79
97
90
139
255
1,112

19,699
16,827
39,259

5,404
2,462
9,940

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

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

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

438
553
502
472
517
598

900
900

458

1973 - Jan
Feb

l

Not Seasonally Adjusted
9,561
2,682
10,172
1,845
24,160
3,938

24,074
21,736
41,647

1969
1970
1971

1

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

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.
1,155
537
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

Monthly data for commercial banks based on Federal Reserve estimates benchmarked
to Call Report data on real estate loans outstanding as available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for- mutual
savings banks and for Life Insurance companies may differ somewhat from those
derived from regular quarterly series because of minor conceptual differences for
which adjustments are not made in the monthly series. Altogether, these groups
accounted for 87 per cent of the net increase estimated for all holders in 1967.
Beginning January 1972 data reflect activity in limited amount of conventional
mortgages.




18
T A B L E 13: Net Increases in Mortgage Debt Outstanding

.Billions of dollars, SAAR 1- to 4- MULTIFAMILY
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
IIL
IV

20.9
22.8
?8 .3
32.2

14.4
16.8
21.3
22.8

9.4
11.6
15.0
16.2

5.0
5.2

,4.8
4.6

9.8
9.9

1.5
1.5

6.6

6.8

13.4

2.2

- I
- 11
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

QUARTER

COMMERCIAL

FARM

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 nonfarm 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 m o r e
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.




19

TABLE 14:

FNMA BIWEEKLY AUCTION RESULTS (FHA/VA LOANS)

TOTAL OFFERS (MILLIONS $)

1

YIELD TO FNMk (PER CENT)

RECEIVED

ACCEPTED

1972 - Oct. 16
30

271.2
186.4

224.9
162.7

7.73
7.74

Nov. 13
27

78.7
60.8

49.2
36.6

7.72
7.70

Dec. 11
26

82.2
108.7

42.4
66.3

7.68
7.69

1973 - Jan.

8
22

74.2
107.0

61.3
92.1

7.69
7.70

Feb.

5
19

128.7
110.3

65.4
71.6

7.71
7.73

Mar.

5
19

170.8
297.3

107.7
168.7

7.75
7.81

Apr.

2
16

234.6
216.6

145.9
190.7

7.86
7.89

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 . Data are for short-term (4 month) commitments.




20
TABLE 15: Private Housing Starts and Permits

STARTS
SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE
1972 - January
February
March
April
May
June
July
August
September
October
November
December
1973 - January
February
March
l

2,439
2,540
2,313
2,204
2,318
2,315
2,244
2,424
2,426
2,446
2,395
2,369
2,497
2,457
2,259;

1,395
1,281
1,310
1,215
1,308
1,283
1,319
1,373
1,382
1,315
1,324
1,207
1,450
1,377
1,239

1.044
1,260
1,003
989
1,011
1,032
925
1,051
1.045
1,131
1,071
1,162
1,047
1,080
1,020

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
TYPE OF FINANCING
FHA | VA I OTHER

36.1
27.8
37.7
29.1
32.4
31.9
26.2
30.3
28.2
25.4
21.3
42.3

7.5
8.0
10.5
8.5
9.4
9.6
9.4
9.9
8.9
8.5
8.0
5.8
12.0 6.8
—
6.8

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

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

126.3

2,218
2,191
2,093

Total starts are Census estimates including farm for both permit-issuing and
non-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

DATE

FHA
MORTGAGES 2
30-year

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 5

1

NEW
ISSUE
Aaa
UTILITY
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES 6

- High
Low

7.97
7.32

7.95
7.55

.28
-.19

8.26
7.02

- High
Low

7.57
7.45

7.70
7.55

.14
.06

7.40
7.09

.61 .
.05

- Jan.
Feb.
Mar.
Apr.
May

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

July
Augus t
September
October
November
December

.52
-.36

•32
7.38
.15
7.70
- Jan.
7.55
. 35
7.40
.19
7.75
7.56
Feb.
.17
7.49
.17
Mar.
7.63
7.80
1 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.
2 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.
3 Based on FHA-field-office opinion on typical contract interest rates (rounded)
on conventional first mortgages prevailing in the market areas of insuring
offices.
4 See note for Table 1.
5 Yield spread equals conventional mortgage rate less FHA secondary market yield.
6 Yield spread equals FHA secondary market yield less new Aaa corporate bond
yield.




TABLE 17: Conventional Mortgage Terms
NEW HOMES

DATE

I LOAN/
CON
FEES &
TRACT CHARGES EFFEC-)MATURITY I PRICE
IIVE I (YEARS) ' iVvTIO
(PER
RATE
I (PER
CENT) RATE '
(PER
CENT)
CENT)

7.48

Oct.

0.95
1.02
0.84
0.83
0.84
0.85
0.83
0.86
0. 86
0.88
0.91
0.92

LOAN
AMT.

($000)

EXISTING HOMES
FEES &
CONMATU
TRACT CHARGES EFFEC
(PER
RATE
RAT 11)
TIVE
RITY
CENT) RATE
(PER
(YEARS) (PER
CENT)
CEM ) ^
2

26.5

7.53
28.2

7.37

27. 9

7.59

7.39

27.3

Jan. r/
Feb. £ /

0.82
0.79
0.77
0.78
0.77
0.78
0.83
0.81
0.83
0.84
0.84
0. 86

7.48

24.8
24.4

25.1

25.6

($000)

76.2

26.3

25.2
25.2

25.4

26.4

29.0
29.9

25.6
25.4

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Tnsurar
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 owncrhuildors.
Related series on conventional mortgage rates only, based on unweighted
opinions of field-office directors of the Federal Housing Administration, aru availablv
somewhat sooner than the results of the FHLBB-FDIC survey, and are included-i
of new home mortgage rates--in Table 16.
Fees and charges--expressed as a percentage of the principal mortgage amount--includt
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.

r

Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.




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