Full text of H.16 Capital Market Developments : April 30, 1973
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D B C O m O U E D 4TTEB S CAPITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. 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 3 TABLE 1: Yields, Volume and Reception CORPORATE BOND MARKET YIELDS MOODY'S SEASONED NEW ISSUE 1 WEEK ENDING: 1973 - Mar. Apr. 2 9 16 23 30 7.52 7.45 -- 100 88 84 100 94 139 83 70 492 90 100 100 98 n.a. 200 n.a. n.a. 7.45 7.27 7.25 7.25 7.27 4 n.a. n.a. — MOODY'S NEW ISSUE Aaa VOLUME 2 PER CENT SOLD BY END BONDS SCHEDULED OF WEEK. WITHIN 28 DAYS 20 234 270 465 110 7.51 WEEK ENDING:' YIELDS | BOND BUYER : SEASONED 20 j BOND INDEX n.a. n• 3• n.a. n.a. n.a. n. a. MUNICIPAL BOND MARKET VOLUME 2 I PER CENT GROSS SOLD BY END OFFERINGS | OF WEEK 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 Apr. 6 13 20 5.22 5.07 5.17 5.14 304 657 286 286 90 93 67 27 5.05 4.85 4.90 5.00 4 n.a. n.a. 357e May 1 7.25 7.27 7.29 7.31 -- 6 13 20 27 May GROSS OFFERINGS - P n.a. BONDS SCHEDULED WITHIN 28 DAYS 1,552 1,419 1,344 1,043 818 / 701 519 433 618 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). 2 Millions of dollars unless otherwise indicated. Note: See footnotes to Table 3 TABLE 2: Details on Inventories DATE OFFERED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND YIELD CALL PROTECTION COUPON ISSUER AMOUNT ' (MIL. $) 4/26 75.0 Ford Motor Credit 7.25 5 yrs 7.13 ESTIMATED PROPORTION SOLD 807. \ OFFERED DATE | RELEXSED CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER COUPON IN YIELD CALL PROT. PORTION RELEASED YIELD AMOUNT NONE INVENTORIES 1 MUNICIPALS 1 IN SYNDICATE BLUE LIST DATE CORPORATES IN SYNDICATE 1973 - March 30 587 63 6 April 6 13 20 27 554 618 701 685 55 56 105 76 4 0 0 lie N.C. - No call protection. 1 All figures in millions of dollars. Blue List is daily average for week ended Priday, except for latest v.iuk vhich iF daily average of three days ended Wednesday. All other figures are as of Friday. for FRASER Z Digitized TABLE 3: High Grade Bond Yields MOODY'S SEASONED CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 %OND 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) 7.45 7.31 7.31 6.92 6.88 5.35 5.26 1973 - Mar. 23 30 -- 5.22 7.27 6.87 5.07 7.25 6.84 5.17 7.25 6.84 7.45 7.27 5.14 6.88 1 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 f:or individual series and may be on different dates for different series. Apr. 6 13 20 27 7.51 6 TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS CORPORATE 1973 1 STATE AND LOCAL ' 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 January February March 1st ,2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1 2 2 ,384 1 ,894 4 ,050e 8, 328e 5,617 Securities and Exchange Commission estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. T A B L E 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) ul'ARTKR OR MONTH TOTAL 1972 - II III IV 11,214 9,195 10,564 GROSS PROCEEDS BY TYPE OF ISSUE COMMON BONDS AND MEMO: PUBLICLY PRIVATELY PFD. ISSUES INCLUDED OFFERED PLACED STOCK FOREIGN 1 C O N V E R T I B L E 4, 634 4, 192 4, 158 2,781 1,867 3,147 3,798 3,136 3,258 245 57 245 449 836, 428 GROSS PROCEEDS BY T Y P E OF ISSUER - MFG. PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS 1 2j,109 1,,629 1,,398 3,495 2,680 2,934 1,369 856 1,079 4,240 4,030 5,151 1973 - I 8,328 2,,730 1,626 3,971 n. a. 113 612 2,443 1,158 4,115 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 3,598 4,341 1,,622 1,,676 1,,336 789 744 1,218 864 1,148 1,786 15 100 130 92 226 131 581 761 767 1,219 738 1,538 178 391 800 1,297 1,708 1,235 July Aug. Sept. 3,582 2,893 2,720 1.,807 1:,523 863 657 421 789 1,118 948 1,070 3 17 37 450 183 203 574 452 603 798 635 1,247 586 237 33 1,624 1,568 838 Oct. -Nov. Dec. 3,791 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 1,895 989 641 344 282 1,050 971 | 14 27 81 27 173 204 897 596 33 140 1,280 955 1 ,100 1,000 1,950 | n. a. 5 235 950 985 1,880 2,384 1973 - J a n . 1 1,894 Feb. . M a r . e.If 4 , 0 5 0 1 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. I ' I 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 27,1973 TYPE ' 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. Bell Tel of Pa. Bell Tel of Pa. Industrial National Co. Washington Water Pwr Co Ford Motor Credit Co Ford Motor Credit Co Tucson Gas & Elect Wickes Corp GTE of Michigan Tucson G & E Florida Gulf Realty Trust 1st mtge. Notes Notes Pref stk Bonds Bonds Bonds Pref stk Bonds Bonds Com stk Bene. Int. Notes Deb Notes Deb Deb Notes 1st mtg Deb 1st irttig Pref 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 50.0 125.0 20.0 . 20.0 75.0 75.0 40.0 60.0 20.0 15.0 43.6 MATURITY 2003 1983 1993 1981 1998 1980 1980 1993 1980 2013 1981 2003 1993 1979 2003 1998 2003 COUPON RATE OR NET INTEREST COST OFFERING YIELD 7.63 7.50 7.75 7.45 8.50 7 7/8 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 7.00 7 1/2 7.40 7 7/8 7 1/2 7 1/4 7.65 7 7/8. 7 5/8 7.50 7.07 7.53 7.40 7.74 7.50 7.13 7.65 7.90 7.60 7.50 MOODY 1 S RATINf. AA A —— --—— —— —— Baa Aaa Aaa __ A —— -- A Baa A A T A B L E 6: Large Long-term Public Security Issues for New Capital (continuod) (Other than U.S. Treasury) 1 AMOUNT (MILLIONS OF DOLLARS) Jacksonville Elec. Auth, Fla. Rev. 45.0 Connecticut, State of Tacoma, Washington Buffalo, New York Ohio, State of Orange Co., Fla. Lehigh Co. Ind. Dev. Auth G • Oe Rfg. Rev. G.O. G.O. Swr-Rev. 68.0 24.3 22.9 40.0 10.8 Lehigh Co. Ind. Dev. Auth Wisconsin Wisconsin Memphis, Tenn. New Mexico New Mexico San Francisco Muni RR Imp Corp New York City New York, New York "" Md. Health & Higher Ed Fac Auth Md.iHealth & Higher Ed Fac Auth Mass. Port Auth Mass Port Auth Murray State Univ., Ky. Bldg. Alaska State Hsg Auth Dekalb Co., Ga. *Houston, Texas Escambia Co., Florida Escambia Co., Florida Wayne Co., Intermediate S/D. Mich. Monroe Co., N.Y. 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 Rev. 10.8 G.O. , 224.8 G.O. 60.6 Rev. 10.1 Rev. 13.4 Rev. , 74.0 Rev. 33.0 Ref 11.8 Rev 13.0 Rev 15.0 Rev 25.0 Poll Cont Rev 22.0 Poll Cont 13.0 G.O. G.O. 10.0 10.0 • MATURITY 1980-1990 2001 1974-1993 1982-2007 1974-1999 April 1 through April 27, 1973 COUPON 1 RATE OR 1 OFFER - MOODY'S NET INTER- ! r;.c, RATING EST COST J 5.29 4.87 5.49 4.99 4.88 5.52 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 1974-2002 1976-2002 1974-2005 1993 1974-1983 1975-1993 1974-2003 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 Aaa A-l A Aaa Baa-1 4.50-4.88 A 6.25 3.90-5.30 3.90-5.00 3.80-4.90 A Aa Aa Aa 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 5.66 ' 5.36 5.38 Aa Aa A A A A A A 5.00-5.88 4.20-4.70 4.15-5.50 4.00-5.50 6.25 5.03 4. 66 4.72 4.21 4.22 4.83 5.10 -- 4 7" __ __ -- 4.50-5.30 5.07 4.00-5.20 A A-l Baa Baa TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 ISSUER 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 Monroe Co., N.Y. Virginia Public Sch Auth TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY G.O. G.O. G.O. Rev Elec rev Elec rev 10.3 44.9 25.4 5.0 11.0 39.0 1977-1998 2023 1974-2013 1974-2013 1978-1992 2013 G.O. 10.0 G.O. G.O. G.O. Rev 22.0 12.0 5.9 15.2 m April 1 through April 27. 1973 COUPON RATE OR OFFER - MOODY'S NET INTERINC RATING EST COST YIELD __ 5.00 4.99 5.30 5.30 4.65-5.75 5.90 3.90-5.25 3.90-5.25 4.25-5.00 5.34 A A Aa 1974-2003 4.89 3.75-5.30 Aa 1975-1995 1975-2013 1974-1987 1975-1994 4.83 5.09 4.83 4.00-5.00 3.90-5.35 3.90-5.10 4.00-5.00 Aa Aa Aaa Aa 7.20 7.20 7.20 7.58 —— — Aa Aa Other Farmers Home Admin Farmers Home A d m i n Province of Quebec T.V.A. * 1 2 3 Notes Notes Debs Pwr Bd 300.2 200.9 100.0 150.0 1978 1977 2003 1998 — 7.39 —* 7.35 Rights offering. Includes corporate and other security offerings of $15 million and over; State and local security offerings of $10 million and over. In case of State and local government securities, G.O. denotes genera1 obligation; •tev.-Ut., revenue obligations secured only by incomc from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilitivs; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by lease payments. Includes foreign government and International Bank for Reconstruction and Development issues and non-quaranteed issues by Federal Agencies. -- TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) As of April 27, 1973 ISSUER Gulf Power * Instrument Systems Corp Toledo Edison *Jones & Laugh1in Steel Corp Hartford Elect Co General Public Utilities *Seaboard Coastline RR Co Baltimore Gas & Electric Dayton Power & Light Public Service Colo. Investors Realty Trust , Mississippi PWr Columbus & Southern Ohio E. Columbia Gas *Orange & Rockland *Carolina Pwr & Lt Con Edison *GTE of Kentucky *Fla. IVr 4 * Pacific Tel & Tel * Pacific Tel & Tel Continental Illinois Corp Great American Mortgage Invest: Walter Kidde & Co. TYPE Bonds Com stk 1st mtg Bonds Com stk (rts) 1st mtg Com stk Pres stk Bonds Bonds Bonds Com Bonds 1st mtg Bonds Com st Bonds Bonds Bonds Bonds Bonds Bonds Debs AMOUNT (MILLIONS OF DOLLARS) 25 .0 25 .0 22 .5 40 .0 40 .0 83 .0 75,.0 45 .0 25 .0 50,.0 15..0 15..0 25.,0 50.,0 25.,0 100. 0 120. 0 14. 0 60.0 200. 0 100. 0 100. 0 25. 0 65. 0 APPROXIMATE DATE OF OFFERING May May May May May May May May May May May May May May May May May May May May May INDEF INDEF INDEF 1 1 1 1 2 3 3 8 9 10 10 15 16 16 21 22 23 24 30 31 31 11 12 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) ' As of April 27. 1973 TYPE ISSUER State and Local California Pinellas Co., Fla Detroit, Mich New .Jersey Turnpike Auth *Tucson, Ariz St. Paul, Minn New York State Dormitory Auth ^Alaska Philadelphia, Pa. ""Dallas, Texas San Jose USD, Cal New Orleans, La Ohio Pub Fac Comm Austin, Texas Massachusetts Los Angeles Reg Arpts Corp, Cal Prince George's Co., Maryland Gulf Coast Waste Disposal Auth, Tex Pensacola, Fla Lacygne, Kan Los Angeles Calif Dept of Wtr & Pwr G.O. Rev G.O. Rev G.O. G.O. Rev G.O. G.O. G.O. G.O". G.O. Rev Rev G.O. AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING 25.0 13.0 17.5 210.0 14.1 10.9 11.5 27.0 53.2 21.0 13.0 18.0 40.0 17.5 10.4 May May May May May May May May May May May May May May May Rev Poll cont rev 25.5 25.0 May May Rev Rev Rev 25.0 12.5 30.0 May May ,May Rev 47.0 June 1 1 1 3 8 9 9 15 15 16 16 16 22 31 10 6 Included in table for first time. Includes corporate and other issues of 315 million and ever; State and local Government issues of 510 million and over. Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. 13 Tables STOCK PRICES AND VOLUME TRADING VOLUME 2 ' STOCK PRICES 1 ' DATE NYSE INDEX 3 ' D J . INDUSTRIALS 1971 - High Low 5 7 . 7 6 (4/28) 4 8 . 7 3 (1/4) 1972 - H i g h Low 6 5 . 1 4 (12/11) 1036.27(12/11) 28.53 25.61 56.23 (1/3) 8 8 9 . 3 0 (1/3) 1973 - High Low 65.48 (1/11) 1051.70 (1/11) 26.70 (1/8) 56.85 (3/26) 922.19 (4/27) 23.57 (4/27) 1973 - Mar. Apr. - NYSE AMEX 22.1 (2/12) 11.0 (9/17) 6.7 (2/5) 2.7 (8/13) 21.8 11.2 7.4 (3/10) 2.6 (9/8) AMEX * 950.82 (4/28) 36.68 (4/28) 797.97 (11/23 )22.72 (1/4) (4/14) (1/3) (11/10) (9/8) 2 0 . 4 (1/12) 1 2 . 4 (4/6) 4.8 (1/12) 2.7 (3/16) 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 4.0 2.9 2.7 3.1 2.8 6 58.23 931.07 24.06 13 20 27 59 65 59.59 56.86 959.36 963.20 922.17 24.18 24.07 23.57 12.4 15.2 13.2 2.9 3.1 2.7 14.5 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/ Through; Pay - Week From 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 , 3.2 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 25 lii T A B L E 9: Security Credit END OF PERIOD CREDIT EXTENDED T Q M A R G I N CUSTOMERS B Y : BROKERS 1 | BANKS 2 | TOTAL :CUSTOMERS' N E T DEBIT BALANCES NET CREDIT ' C U S T O M E R S ' N E T EXTENDED BY BROKERS A N D FREE C R E D I T DEALERS 3 BALANCES Outstanding: 1972 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Det. 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 1973 - Jan. 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 -- 268 54 -30 -53 -129 -99 14 -128 -61 41 121 99 -- 21 Outstanding Changes: 1972 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1973 - Jan. 1 2 3 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) (4) (4) 2,488 2,542 2,512 2,459 2,300 2,231 2,245 2,117 2,056 2,097 2,218 2,317 (4) (4) (4) (4) (4) - 2,296 - (4) (4) ---— —— -— —— -- ; (4) (4) (4) -——--—— --- — Margin debt, as reported by the New Y o r k Stock Exchange. A l t h o u g h 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." T h e 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. N O T E : W i t h the exception of bank loan data, figures are supplied by the New York Stock Exchange and are end of month data. B a n k 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 n o t . Series discontinued Digitized4for FRASER TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS REGULAR DEPOSITS 3 NET ANNUAL 1 NEW GROWTH NET MONEY2 1 FLOW RATE 2,549 4,517 9,621 9,788 1969 1970 1971 1972 4.0 6.8 13,5 12.0 -763 936 5,678 5,397 SAVINGS & LOAN ASSOCIATIONS SHARE CAPITAL NET NEW ANNUAL NET GROWTH MONEY2 FLOW RATE 1 Not Seasonally Adjusted 4,068 3.1 -1,003 10,965 8.1 5,285 28,230 19.3 20,653 32,902 19.5 23,884 1972 - January February March 855 931 1,507 716 809 773 3,266 1973 - January February^/ March®/ 766 551 1,070 595 402 1972 -.September October November December 925 780 761 902 1973 - January?/ February®/ March®/ 808 1 2 3 12.6 10.5 10.2 12.0 465 10.6 6.1 550 7.0 TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW 6,617 15,482 37,851 42,690 4,287 3,117 2,700 2,533 4,121 3,749 5,794 3,278 3,105 4,044 2,818 3.4 7.7 17.5 17.0 3;!oo Seasonally Adjusted 2,930 17.8 2,706 16.2 2,246 13.3 2,164 12.7 3,855 3,486 3,007 3 s 066 14.5 12.3 12.5 4,026 1,835 1,900 4,834 2,300 2,450 19.4 9.1 9.5 23.3 10.4 10.5 NET NEW MONEY 2 -1,766 6,231 26,331 29,281 k m 16.2 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. i SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. 6% TABLE 11: Mortgage Commitments at Selected Thrift Institutions OUTSTANDING COMMITMENTS | ALL MUTUAL 1 TOTAL SAVINGS SAVINGS & BANKS LOAN (N.Y. STATE) ASSOCIATIONS 1 NET CHANGE ALL .SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) DATE TOTAL 1971-Dec. 16.6 13.1 3.6 .09 1972-Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. 18.0 19.1 19.7 20.1 20.6 20.7 21.0 21.8 22.9 23.6 24.3 24.9 14.1 15.0 15.4 15.7 16.2 16.3 16.5 17.3 18.1 18.7 19.4 20.0 3.9 4.1 4.3 4.4 4.4 4.4 4.5 4.5 4.8 4.9 4.9 4.9 .24 .67 .49 .42 .60 .53 .36 .83 .99 .73 .73 .68 . 11 .39 .38 .29 .55 .60 .26 .76 .77 .63 .69 .65 .13 .28 . 11 .13 .05 -.07 . 10 .07 .22 . 10 .04 .03 1973-Jan. Feb. 25.8 20.7 5.1 5.0 .86 .69 .17 -.10 (Billions of Dollar: 1 Seasonally Adjusted)r/ -.06 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. . 15 17 T A B L E 12: Net Change in Mortgage Holdings T O T A L Li INCLUDING FNMA-GNMA 1 FINANCIAL INSTITUTIONS MUTUAL SAVINGS & | L I F E LOAN INSURANCE SAVINGS TOTAL | C O M M E R C I A L ASSOC. | COMPANIES | BANKS BANKS N o t Seasonally A d j u s t e d 1969 1970 1971 1972 - Jul; Aug Sep Oct Nov Dec 24,074 21,736 41,647 19,699 16,827 39,259 5,404 2,462 9,940 2,682 1,845 3,938 9,561 10,172 24,160 2,052 2,348 1,221 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 1,000 438 553 502 472 517 598 2,758 3,313 2,926 2,673 2,712 3,101 79 97 90 139 255 1,112 900 900 458 331 1,758 162 1973 - J a n Feb Mar 1,600 1,400 1,400 1,500 1,200 Seasonally A d j u s t e d 5 2,596 464 1,264 4,329 4,464 1972 - M a r 85 2,481 400 1,361 4,327 4,363 Apr 67 2,567 453 1,434 4,521 4,908 May96 2,959 516 1,489 5,060 5,176 June 101 2,67% 472 1,451 4,593 4,849 July 79 3,108 515 1,477 5,179 5,471 Aug 111 2,911 537 1,155 4,714 4,748 Sept 135 2,726 484 1,393 4,738 4,714 Oct 299 2,876 513 5,212 1,524 5,282 Nov 782 3,130 525 5,601 1,164 5,697 Dec 219 2,180 475 1,112 Jan 1973 n. a. 388 1,079 Feb n.a. 1,262 Mar M o n t h l y 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 m o r t g a g e debt outstanding as reported separately by National Assn. of M u t u a l Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance and, through August 1968, the Federal National M o r t g a g e Association, and thereafter by FNMA and the Government National Mortgage A s s o c i a t i o n . Data for mutual savings banks and for Life Insurance companies m a y differ somewhat from those derived from regular quarterly series because of minor conceptual differences for which a d j u s t m e n t s 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 J a n u a r y 1972 data reflect activity in limited amount of conventional mortgages. a 18 TABLE 13: Net Increases in Mortgage Debt Outstanding Billions of dollars, SAAR MULTIFAMILY MULTI-AND COMMERCIAL TOTAL RESIDENTIAL 3 1- to 4FAMILY 1968 - 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 1969 - 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 1970 - I II III IV 20.9 22.8 _28.3 32.2 14.4 16.8 21.3 22.8 9.4 11.6 15.0 16.2 5.0 5.2 6.3 6.6 4.8 4.6 5.1 6.8 9.8 9.9 13.4 2.2 1971 - 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 1972 - 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 1.5 1.5 —2.1 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. 19 TABLE 14: FNMA. BIWEEKLY AUCTION RESULTS (FHA/VA LOANS) TOTAL OFFERS (MILLIONS $) YIELD TO FNMA. (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 g r o s s — b e f o r e deduction of 38 basis-point fee paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for FNM& commitment fees and FNMk stock purchase and holding requirements. Data are for short-term (4 month) commitments. 20 T A B L E 15: Private Housing Starts and Permits STARTS UNADJUSTED TYPE OF FINANCING SEASONALLY A D J U S T E D A N N U A L RATE TOTAL |l-FAMILY 2 OR MORE 1972 - January FebruaryMarch 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 1973 - January February March 2,497 2,457 2,259 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 BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 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 9.6 31.9 26.2 9.4 30.3 9.9 28.2 8.9 25.4 8.5 21.3 8.0 42.3 5 . 8 147.1 138.8 12.0 -- 150.9 153.6 205.8 213.2 227.9 226.3 207.5 231.0 204.4 218.2 6.8 6.8 107.3 117.8 155.7 172.9 186.1 184.8 171.9 190.8 167.3 184.3 157.8 102.4 126.3 2,204 2,056 2,007 1,991 1,955 2,121 2,108 2,237 2,265 2,216 2,139 2,377 2,218 2,191 2,093 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. A s reported T>y 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 m o r t g a g e s . Building permits are Census estimates based on 13,000 or all k n o w n permitissuing places. U n l i k e starts, seasonally adjusted building permits reflect direct adjustment for differences in the n u m b e r of days per month, as w e l l as other differences in timing and coverage. 21 T A B L E 16: Mortgage and Bond Yields FHA MORTGAGES DATE 30-year 2 CONVENTIONAL MORTGAGES 3 2 3 4 5 6 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 .52 -.36 - High Low 7.57 7.45 7.70 7.55 ..14 .06 7.40 7.09 .61 •05 - Jan. Feb. Mar. Apr. May June July August September October November December 7.49 7.46 7.45 7.50 7.53 7.54 7.54 7.55 7.56 7.57 7.57 7.56 7.60 7.60 7.55 7.60 7.60 7.60 7.65 7.65 7.70 7.70 7.70 7.70 .11 .14 .10 .10 .07 .06 .11 .10 .14 .13 .13 .14 7.21 7.34 7.24 7.45 7.38 7.32 7.38 7.37 7.40 7.38 7.09 7.15 .28 .12 .21 .05 .15 .22 •16 as .16 .19 .61 .55 7.55 7.56 , 7.70 7.75 .15 .19 7.38 7.40 .32 .35 7.80 .17 7.49 .31 Feb. Mar. 1 SPREAD BETWEEN YIELDS ON C0NV. & FHA M O R T GAGES 5 1 ' 7.63 N e i t h e r mortgage nor bond yields include allowance for servicing casts which are much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, m o n t h l y . M o r t g a g e 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 m i n i mum 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 T A B L E 17: Conventional Mortgage Terms NEW HOMES CONFEES & ] LOAN / TRACT CHARGES EFFEC- MATURITY j PRICE RATE (PER (YlARS) 1 'VvTIO TIVE (PER C E N T ) RATE | (PER CENT) CENT) 2 I 1972 Jan. Feb. Mar. Apr. Hay LOAN AMT. ($000) EXISTING HOMES CONFEES & LOAN/ TRACT CHARGES EFFEC- MATU- PRICK (PER RATE TIVE RITY RATIO (PER CENT) RATE (YEARS) (PER CENT) CENT) 2 3 ; July Aug. Sept. Oct. Nov. Dec. 7.62 7.45 7.38 7.38 7.40 7.41 7.43 7.45 7.43 7.48 7.50 7.51 1973 4/ Jan. Feb. 7.52 7.52 1.03 1.15 7.68 7.70 26.8 25.7 76.6 78.6 27.0 27.6 7.53 7.55 0.94 1.03 7.68 7.72 23.2 23.6 Mar. 7.52 1.09 7.69 26.9 78.5 27.5 7.53 1.00 7.69 23.9 0.95 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 1.02 0.84 0.83 0.84 0. 85 0 . 83 0.86 Oc 86 0.88 75.0 76.5 27.6 27.8 76.2 28.2 76.0 76.2 76.5 77.0 77.5 77.5 77.3 77.3 78.0 28.5 28.5 27.8 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 28.2 27.9 27.9 27.4 28.0 0.82 24.7 25.4 25.1 25.2 25.2 25.5 25.6 26.3 LOAN AMT. ($000) 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 26.3 26.4 74.7 75.8 75.6 75.3 75.4 76.1 76.2 76.5 76.5 76.3 76.8 76.8 75.2 77.5 22.6 77.2 22.4 0.79 0.77 0.78 0.77 0.78 0.83 0.81 0.83 0.84 0.84 26.2 26.1 24.1 24.8 24.4 24.9 24.6 25.2 25.2 25.4 24.8 25.0 25.4 25.7 22.0 Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted opinions of field-office directors of the Federal Housing Administration, are available somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case of new home mortgage rates--in Table 16. Fees and charges--expressed as a percentage of the principal mortgage amount — include loan commissions, fees, discounts, and other charges which provide added income to the lender and are paid by the borrower. They exclude any closing costs related solely to transfer of property ownership. Includes fees & charges amortized over a 10 year period in addition to the contract interest rate. 4 Beginning J a n u a r y 1973, series revised. to data on or after that data. D a t e before J a n u a r y 1973 not comparable