Full text of H.16 Capital Market Developments : August 6, 1973
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7 1973 H.1 August 6 , 1 9 7 3 Prepared by the CAPITAL MARKETS SECTION in conjunction with the MORTGAGE, AGRICULTURAL, and CONSUMER FINANCE SECTION CAPITAL MARKET DEVELOPMENTS DIVISION OF RESEARCH AND STATISTICS BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM Washington, D C. 20551 D E V E L O P M E N T S IN T H E C O R P O R A T E AND MUNICIPAL BOND MARKETS C A P I T A L MARKET Y I E L D S C A P I T A L MARKET VOLUME S T O C K MARKET MORTGAGE MARKET SYMBOLS e ESTIMATE P PRELIMINARY r REVISED n.a. N O T AVAILABLE — — DATA DO NOT EXIST Table 1 YIELDS, VOLUME AND RECEPTION i C O R P O R A T E BOND MARKET WEEK ENDING 1973 - J u l y Aug. YIELDS NEW ISSUE 1 A a a UTILITY VOLUME RECENTLY OFFERED Aaa UTILITY 2 3 GROSS OFFERINGS ( $ MILLIONS) PER CENT SOLD BY END OF WEEK NEW I S S U E S 4 IN SYNDICATE ( $ MILLIONS) 6 13 20 27 7.92 7.92 8.03 7.80 7.85r 7.94 8.12r 0 317 54 219 0 76 81 96 0 77 10 lOr 3 8.31p 8.32p 343 100 0 — MUNICIPAL B O N D MARKET YIELDS W E E K ENDING MOODY'S NEW ISSUE VOLUME BOND BUYER 20-BDND INDEX 3 GROSS OFFERINGS ( $ MILLIONS) PER CENT SOLD BY END OF WEEK NEW I S S U E S 4 IN SYNDICATE ( $ MILLIONS) 1&73 - J u l y 6 13 20 27 5.10 5.25 5.20 5.30 5.34 5.40 5.37 5.48 194 503 436 626 71 74 76 85 133 129 144 148 Aug. 3 5.40 5.59 181 89 86 y NOTES: 1 Federal Reserve series of implied yield on newly issued, Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa rated utility bond with 5-year call protection, released from price restrictions sometime during the last four weeks. 3 Estimated by F.R. on the basis of available data. 4 Corporate Market: Salomon Brothers Bond Market Roundup; Municipal Market: Weekly Bond Buyer. Data are adjusted by Federal Reserve when necessary to make coverage of this series consistent with the gross offerings series. H.16 Table 2 HIGH GRADE BOND YIELDS NEW ISSUE A a a UTILITY DATE 1 RECENTLY O F F E R E D A a a UTILITY 2 MOODY'S SEASONED CORPORATE Aaa 3 U.S. GOVT. 20-YEAR C O N S T A N T MATURITY 4 BOND BUYER 2 0 - B 0 N D INDEX 1971 - High Low 8.26 (7/30) 7.02 ( 2 / 5 ) 8.23 (1/1) 7.17 (12/31) 7.71 (8/12) 7.06 ( 2 / 1 2 ) 6 . 5 1 (6/18) 5.69 (3/23) 6.23 (6/23) 4 . 9 7 (10/21) 1972 - High Low 7.60 ( 4 / 2 1 ) 6 . 9 9 (11/24) 7.46 ( 5 / 1 2 ) 7.17 ( 1 / 7 ) 7.36 (4/28) 7.05 (12/8) 6 . 1 9 (4/14) 5.74 (11/17) 5.54 ( 4 / 1 3 ) 4 . 9 6 (10/21) 1973 - High Low 8.31 (8/3) 7.29 ( 1 / 2 1 ) 8.32 ( 8 / 3 ) 7.28 ( 1 / 5 ) 7.52 (8/3) 7.11 (1/5) 7.63 (8/3) 6.42 (1/5) 5.59 (8/3) 5.03 ( 1 / 1 2 ) 7.92 7.92 8.03 7.80 7.85 7.94 8.12r 7.41 7.44 7.45 7.48r 7.16 7.20 7.25 7.39r 5.34 5.40 5.37 5.48 8.31p 8.32p 7.52p 7.63p 5.59 July Aug. 6 13 20 27 3 - — 5 NOTES: 1 Federal Reserve series of implied yield on newly issued, Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection released from price restrictions sometime during the last 4 3 Weekly average of daily closing figures. 4 Weekly average of daily figures. U.S. Treasury data. 5 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. IWeekly Bond Buyer data. I N.16 Table 3 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS IN MILLIONS O F DOLLARS G R O S S PROCEEDS 1973 3 ,115 1,978 3 ,229 3 ,000 6 ,075 1,481 2,353 April May 2,484 3 ,275 4 ,042 2,468 3 ,598 3 ,300 4 ,341 4 ,375 2,327 1,962 3,933 1972 1 3 ,205 3 ,369 . 2 S T A T E AND LOCAL 1971 1973 January February 1 CORPORATE PERIOD 1,772 1,990 1972 1 , 1 ,776 2 ,005 2 ,239 1 1971 2,732 1,851 2,258 1 ,989 2 ,017 2,167 2 ,270 2,013 1,891 July 3 ,582 4 ,147 1,805 1,989 August September 2 ,893 2 ,532 2 720 3 ,768 1 ,966 1 ,726 2,098 October November 3 791 3 ,387 3., 3 7 7 3 ,704 2 ., 2 0 0 1:, 8 6 1 1,728 2,264 December Q1 02 03 04 1st Half 3 Otrs. Year 8,222 3,, 3 9 6 3,, 6 7 3 9,, 8 0 3 11,, 2 1 4 12., 1 9 0 n :,688 5,812 1,903 1, , 7 9 4 2,068 6,, 0 2 0 6,,276 6,841 6,081 9 :, 1 9 5 10,, 4 4 7 5 j, 4 9 4 5,990 10,, 5 6 4 10,, 7 6 4 5,, 8 5 5 6,060 21,,017 23.,844 12,,296 12,812 30,,212 34,,325 17,,790 18,902 4 0 , 776 45,,089 23, 645 24,962 . NOTES: 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts. H.16 Table 4 NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER IN MILLIONS O F DOLLARS G R O S S PROCEEDS BY TYPE OF ISSUE PERIOD 1972 - I I III IV G R O S S P R O C E E D S BY TYPE OF ISSUER BONDS TOTAL PUBLICLY OFFERED COMMON MEMO AND MANUFACPRIVATELY ISSUES INCLUDED PREFERRED TURING PLACED FOREIGN [CONVERTIBLE STOCK COMMUNICATIONS OTHER ISSUERS 11,214 9,195 10,564 4,634 4,192 4,158 2,781 1,867 3,147 3,798 3,136 3,258 245 57 245 449 836 428 2,109 1,629 1,398 3,495 2,680 2,934 1,369 856 1,079 4,240 4,030 5,151 1973 - I 8,222 2,945 1,405 3,971 105 112 898 2,427 1,215 3,683 1972 - Mar. 3,229 1,677 577 976 3 233 604 740 227 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 1973 - J a n . Feb. Mar. 2,327 1,962 3,933 989 641 1,315 287 316 802 1,050 1,104 1,817 14 27 64 81 28 3 176 213 509 900 596 931 33 174 1,008 1,218 980 1,485 Apr. May 2,484 2,468 938 1,049 788 611 758 808 63 44 25 78 282 381 519 765 258? 367 1,426 955 NOTES: 1 PUBLIC UTILITY Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: Securities and Exchange Commission. Estimated data are derived by Federal Reserve based upon available information. 1 T a b l e 5A LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 From J u l y 1, through J u l y 3 1 , 1973 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OFFERING YIELD MOODY'S RATING CORPORATE Ford Motor C r e d i t Co G r e a t Northern Nekoosa Corp Michigan C o n s o l i d a t e d Gas American Gen. Bond Fund A t l a n t a Gas L i g h t P u b l i c Svc. E l e c t . & Gas N o r t h w e s t e r n P u b l i c Svc. Brooklyn.Union Gas N o r t h e r n I l l i n o i s Gas N o r t h e r n I l l i n o i s Gas Penn. E l e c t . ; Dial Financial West Texas U t i l i t i e s GTE of I l l i n o i s Wisconsin Public S e r v . P o r t l a n d Gas & E l e c . Ohio Power N o r t h e r n I n d i a n a Pub. Svc. C i n c i n n a t i Gas & E l e c t , Peoples Gas Light & Cotite Gen.' T e l . of F l a . Ohio Power Winter Park Telephone South C e n t r a l B e l l T e l . Consumers Power NOTES: • 1 Debs 125.0 Bonds 30.0 Bonds 35.0 Com s t k ( r t s . ) 44.6 Bonds 15.0 Com s t k 90.0 1 s t mtge 25.0 Com s t k ( r t s ) 14.6 1 s t mtge 35.0 Com s t k 24.8 Debs 30.0 Debs 25.0 1 s t mtge 23.0 1 s t mtge 17.0 Com s t k 15.1 Pref s t k 20.0 1 s t mtge 40.0 1 s t mtge 75.0 Bonds 60.0 1st mtge 30.0 Pref s t k 40.0 Pref s t k 30.5 Com s t k 11.6 Bonds 200.0 1 s t mtge 75.0 1993 1998 2003 7 7/8 7 7/8 8 1/8 7.88 7.88 8.15 —- - - 1998 8 1/8 8.13 A 2003 8 1/8 8.13 Baa —— Aa A A — 8.00 1998 —- - - 7.93 Aa - - — 3/8 1/8 7/8 1/4 8.25 8.15 7.83 8.20 A 2003 2003 2003 1998 8.20 8 3/8 8 1/8 8 1/8 8 1/4 8.16 8.43 8.20 8.30 8.00 8.00 8.25 8.16 8.35 2013 2003 8 1/4 8 5/8 8.29 8.50 8 8 7 8 2003 1998 2003 2003 -- Aa A - - - - i — A Aa Aa - - Aaa Aa VT. Rights offering. Includes corporate end other security offerings of $16 mlllto H.16 / T a b l e 5B LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 July 1 2 ISSUER TYPE thrdugh July AMOUNT (MILLIONS OF DOLLARS) 3 ^ 1973 MATURITY C O U P O N RA T E OFFERING YIELD MOODY'S RATING S T A T E AND L O C A L Rockland County, N.Y. Oklahoma C i t y , Okla. New York, S t a t e of San J o s e U n i f i e d S/D, C a l i f , Allegheny C o . , Pa. Penna, S t a t e of D a r i e n , Conn. Dade C o . , F l a . P u e r t o Rico Framingham, Mass Wash Metro N o r t h v i l l e , M i c h . , Pub S/D Lubbock, Tex. Lubbock, Tex. Oklahoma 1 M i s s i s s i p p i , S t a t e of Cen. Okla. Trans, &Pk. A u t h . , Okla. City, Okla, Cen. Okla. Trans. & Pk. Auth., Okla. City, Okla, New York S t a t e Dorm. Auth. Florida M i n n e s o t a , S t a t e of M i n n e s o t a , S t a t e of Ft. Lauderdale, Fla. Rev. G.O. G.O. G.O. G.O. G.O. Rev. G.O. • G.O. G.O. Rev. G.O. G.O. G.O. G.O. G.O. G.O. G.O . Rev. Rev. G.O. G.O. Rev. 1974-2005 5.38 4.50-5.50 A-l 15.1 1976-1988, 4.54 4.20-4.65 A, 86.0 1974-2003 5.04 4.40-5.25 13.0 1974-1993 4.97 4.85-7.00 4.90-5.60 Aa A-l A-l A-l Aaa A-l A-l Aa Aaa Baa-1 Aa Aa Aa A-l 16.2 32.4 1974-2003 5.44 150.0 1974-2003 5.50 4.40-5.75 10.0 1975-2000 5.24 4.50-5.40 66.0 1974-1998 5.40 4.50-5.60 65.0 » 13.2 1975-1997 5.84 4.70-5.90 1974-1983 4.96 4*50-5.00 150.0 10.0 6.3 6.0 14.0 2013 1975-2003 — —— 7 3/4 5.74 4.90 4.86 7.50 4.60-6.00 — mmm 4.83 4.25-4.90 52.3 1976-1993 1974-1993 5.15 4.50-5.30 4.2 1977-1988 6.01 11.5 2003 4.90 A 6.01 6.09 5.75-6.30 -- 5.70-6.00 Baa-1 Aa Aa A 12.4 1975-2004 6.28 40.0 7.8 1976-1988 1974-1993 6.10 70.0 19.0 1974-1993 5.09 4.99 1974-1997 5.88 4.25-5.10 4.40-5.20 5.25-5.90 NOTES: 1 Includes state and local lecurity offering! of $10 million and over. 2 In case of State and locql government securities, 0 , 0 Senates general obligation; Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev.<8.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-guaranteed issues by Federal Agencies. ^H.16 T a b l e SB LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 J u l y 1 through J u l y 31, 1973 2 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY C O U P O N RATE OFFERING YIELD MOODY'S RATING S T A T E AND LOCAL Texas Water Development Bd. V i r g i n i a , S t a t e of Covert TWP, Mich. Covert TWP, Mich. P o n t i a c , Stadium Bldg. A u t h . , Mich. P o n t i a c , Mich. F a l l R i v e r , Mass. Macomb Co., Comm. C o l l e g e D l s t . , Mich. Texas New York City East Chicago, Ind. Alabama Highway Auth. M i l f o r d , Conn. U n i v e r s i t y of Okla. C a l v e r t C o . , Md. U n i v e r s i t y of Texas a t A u s t i n Iowa S t . Bd. of Regents • U n i v e r s i t y of Texas Sys. Bd. Regents OTHER3 Tennessee V a l l e y Auth. G.O. G.O. P o l l . Cont Rev. P o l l . Cont • Rev. Rev. G.O. G.O. G.O. G.O. G.O. Rev. Rev. G.O. Rev. Rev. Rev. Rev. Rev. Bonds 10.0 20.9 1982-1988 1975-1992 4.65 4.89 4.45-4.75 4.35-5.05 Aaa Aaa 5.0 1978-1987 - - 4.90-5.50 A —- 5.90 5.20-6.60 4.75-5.88 5.00-5.90 4.60-5.90 4.30-5.10 4.30-5.50 5.95 5.00-5.50 4.90-5.56 5.50-6.10 5.63 4.50-5.25 4.80-6.10 4.90-6.00 A Baa A Baa-1 A-l 26.0 25.0 15.9 17.1 12.3 10.0 331.0 26.0 30.0 13.0 10.1 67.0 11.0 10.0 34.5 2003 1978-2004 1977-2004 1974-1993 . 1977-2003 1974-1998 ... 1975-2014 1998 1974-1990 1974-1993 1974-2003 1998 1974-1993 1977-2003 1977-1999 150.0 1998 6.60 5.69 5.69 5.77 4.95 4.95 -- 5.49 5.34 6.07 5.14 5.75 5.68 7.81 A A Aa A Aa Aaa A A-l 7.77 NOTES: 1 Includes state and local security offerings of $10 million and over. 2 In case of State and local government securities, G.O denotes general obligation; Rev. Ut., revenue obligations secured only by income from public utilities; Rev.-Q.Ut., revenue bonds se-~^ cured 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-guaranteed issues by Federal Agencies. r \ • H.16 T a b l e 6A FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 As of August 3 , 1973 ISSUER Alabama Pwr. Stokely-Van Camp Gulf S t a t e s U t i l i t i e s Guardian Mtg. I n v e s t o r s Mich. Wise. P i p e l i n e Co. So. C a l i f . Ed. New England Pwr. Phil. Elect. New York T e l . F l a . Pwr. & L t . F l a . Pwr. & L t . G T E o f Pa. * P u b l i c S e r v i c e of Colo. *Wisconsin Pub. Svc. *Miss. Pwr. & L t . TYPE Bonds Bonds 1 s t mtg Bonds 1 s t mtg Pref s t k 1 s t mtg Com s t k ( r t s ) Bonds Com s t k 1 s t mtg 1st mtg Pref s t k Debs Bon^s AMOUNT (IN MILLIONS OF DOLLARS) 100,.0 30..0 50..0 35.,0 50.,0 75..0 40..0 106..2 300..0 69.,8 80.,0 25.,0 30.,0 25.,0 20. 0 APPROXIMATE DATE O F O F F E R I N G August August August August August August August August August August August September September September September 7 7 8 8 14 14 15 16 21 23 23 5 5 5 5 NOTES: * Included in table for first time. 1 Includes corporate and other security issues of S15 million and over. H.16 , Table 6B FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 As of August 3, 1973 AMOUNT (IN MILLIONS OF DOLLARS) ISSUER APPROXIMATE DATE OF OFFERING STATE,& LOCAL Pima C o . , Tucson S/D # 1 , A r i z . Tucson High S/D # 1 , A r i z . S t . of New Hampshire I n d u s . Dev. Auth. Illinois D i s t . of Columbia Redev. Land Agency Long Beach C i v i c C t r . A u t h . , C a l . Metro S e a t t l e , Wash. M e t r o Denver Swge. D i s t 1, Col. C h a r l o t t e , N.C. Los Angeles DWAP Metro Denver Sew D i s t . # 1 , Colo. Nassau C o . , N.Y. Tucson S/D # 1 , A r i z . ? Ne& J e r s e y Maryland Ref. Ref. Rev. G.O. G.O. Bonds G.O. Rev. G.O. Rev. Rev. G.O. Ref. G.O. G.O. 49.4 23.3 28.0 100.0 13.1 29.5 14.9 20.0 22.0 15.0 20.0 48.5 26.2 75.0 54.3 August August August August August August August August August August August August August August August 6 6 7 8 15 15 16 21 21 21 21 22 26 28 29 NOTES: 1 Includes state and local government issues of $10 million and over. 2 Includes foreign government and International Bank for Reconstruction and Development issues and issues of Federally sponsored agencies. H.16 * Table 7 STOCK PRICES AND VOLUME 1 STOCK PRICES NYSE INDEX 3 | DJ I N D U S T R I A L S ! 950.82(4/28) 797.97(11/23) 1971 - High Low 57.76(4/18) 48.73(1/4) 1972 - High Low 6 5 . 1 4 ( 1 2 / 1 1 ) 1036.27(12/11) 889.30(1/3) 56.23(1/3) 1973 - High Low 65.48(1/11) 53.36(7/6) 1051.70(1/11) 869. 13(6/25) AMEX 4 | 2 TRADING VOLUME NYSE NASDAQ | AMEX | NASDAQ 8.9(12/30) 5.1(11/26) 2 6 . 6 8 ( 4 / 2 8 ) 112.66(12/31) 22.72(1/4) 100.52(2/26) 22.1(2/12) 11.0(9/17) 6.7(2/5) 2.7(8/13) 28.53(4/14) 133.28(4/21) 25.61(1/3) 114.88(1/7) 21.8(11/10) 11.2(9/8) 7.4(3/10) 2.6(9/8) 11.7(3/10) 6.5(9/10) 26.70(1/8) 136.18(1/12) 22.20(6/25) 99.39(7/5) 20.4(1/12) 10.2(7/6) 4.8(1/12) 1.7(7/6) 10.4(1/12) 3.8(7/6) July 6 13 20 27 53.36 55.12 57.09 58.36 870.11 885.99 910.90 936.71 22.24 22.64 23.18 23.54 99.48 103.03 107.67 109.36 10.2 14.6 16.7 17.1 1.7 2.4 2.9 3.1 4.0 5.5 5.9 6.4 Aug. 3 56.79 908.87 23.35 106.82 12.0 2.1 5.1 NOTES: 1 Figures other than highs and lows are Fridays only. Highs and lows are for the year and are not necessarily for Fridays. 2 Volume figures are weekly averages of daily figures (millions of shares). Trading is normally conducted for 5% hours per day and 5 days per week, or 27% hours per week. In recent years, however abbreviated trading to the extent, and over the time periods, shown below: From Through 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. Hours/Day 4 4% 5 . Days/Week Hours/Week 5 5 5 20 2254 25 <16 Table 8 SECURITY CREDIT 11 REGULATED MARGIN CREDIT EXTENDED BY END O F PERIOD BROKERS ON1 BROKERS ON2 MARGIN CONVERTIBLE STOCK BONDS 31 BANKS UNREGULATED NONMARGIN STOCK CREDIT AT B A N K S 5 OTHER SECURITY CREDIT AT BANKS OUTSTANDING - May June July Aug. Sept. Oct. Nov. Dec. 1973 - J a n . Feb. Mar. Apr. May 7,200 7,510 7,660 7,780 7,800 7,800 7,890 7,900 241 244 248 246 248 250 249 254 7,700 7,500 7,200 7,040 6,540 6,180 249 248 244 232 224 225 - 994 955 979 1,032 1,008 943 902 865 1,141 1,644 1,772 1,800 1,871 1,875 .1,871 1,896 1,296 1,274 1,285 1,298 1,255 1,351 1,296 1,528 865 867 879 872 866 n. a. 1,940 1,954 1,917 1,969 2,010 n.a. 1,484 1,508 1,566 1,482 1,502 n.a. -8 -9 503 128 28 71 4 -4 25 -16 18 -22 11 13 -43 96 45 132 44 14 -37 52 41 -44 24 58 C H A N G E IN OUTSTANDING 1972 - Apr. 390 190 310 150 120 20 90 10 1 3 4 -2 2 2 -1 5 -200 -200 -300 -160 -500 -360 -5 -1 -4 -12 -8 -9 May June July Aug. Sept. Oct. Nov. Dec. 1973 - J a n . Feb. Mar. Apr. May June 16 27 39 24 53 -24 -65 -41 -37 — 2 • 12 -7 -6 n. a . • n.a. 32 20 n.a. NOTES: 1 Margin account debt as reported by the New York Stock Exchange, excluding credit for subscription issues and convertible bonds. 2 New York Stock Exchange data. 3 June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which accounted for 60 per cent of security credit outstanding at banks on June 30. 4 Nonmargin stocks are those not listed on a national securities exchange and not included on the Board of Governors of the Federal Reserve System's list of OTC margin stocks. At banks«Joans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no 5 Includes loans to purchase or carry margin stock if these are unsecured or secured entirely by unrestricted collateral. H.16 ! SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN MILLIONS O F D O L L A R S I MUTUAL S A V I N G S B A N K S REGULAR D E P O S I T S NET FLOW 1970 1971 1972 f 1 ANNUAL 3 GROWTH RATE S A V I N G S & LOAN A S S O C I A T I O N S NET NEW MONEY 2 S H A R E CAPITAL NET FLOW ANNUAL 3 GROWTH RATE NET NEW MONEY TOTAL 2 DEPOSITS NET FLOW ANNUAL 3 GROWTH RATE NET NEW MONEY N O T SEASONALLY A D J U S T E D 1972 - Apr. May. June 1973 - Apr.. May June j>/ 4,517 9,621 9,788 6.8 13.5 12.0 936 5,678 5,397 10,965 28,230 32,902 464 669 1,136 —— 280 533 868 1,744 2,209 3,738 -88 366 n.a. 831 1,880 3,282 96 525 875 - — -- - — -- 8.1 19.3 19.5 -—— — -— 5,285 20,653 23,884 15,482 37,851 42,690 7.7 17,5 17.0 6,221 26,331 29,281 1,668 2,107 1,626 2,208 2,878 4,874 —— 1,948 2,640 2,494 724 1,763 900 927 2,383 4,157 __ 4,834 2,299 2,980 1,646 2,379 3,142 19.4 9.1 11.7 6.4 9.2 12.1 * — —— -- 636 2,107 n . a. SEASONALLY ADJUSTED 1973 - J a n . Feb. Mar. Apr. May June jj>/ t 808 465 579 387 450 742 10.6 6.1 7.5 5.0 5.8 9.5 —- " -- -- 4,026 1,834 2,401 1,259 1,929 2,400 23.3 10.4 13.5 7.0 10.7 13.2 —— - — —— —— -- NOTES: 1 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. 2 New deposits net of both withdrawals and interest. Data for S&L'sr are for insured associations only, which represent 96 per cent of industry total resources. 3 Annual growth rate for monthly data is the annualized monthly percentage increase in deposits. Source: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. — —— -- - 2 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS 13 BILLIONS O F D O L L A R S , S E A S O N A L L Y A D J U S T E D NET C H A N G E OUTSTANDING C O M M I T M E N T S PERIOD TOTAL ALL S A V I N G S MUTUAL & LOAN SAVINGS BKS ASSOCIATIONS (N Y. S T A T E ) TOTAL MUTUAL ALL S A V I N G S & LOAN SAVINGS BKS ASSOCIATIONS (N Y. S T A T E ) ( B i l l i o n s of D o l l a r s , S e a s o n a l l y Adjusted):r / 1971 - Dec. 16.6 13.1 3.6 .09 -.06 ' .15 1972 - J a n . 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 1.19 .4* .42 .60 .53 .36 .83 .99 .73 .73 .68 .11 .91 .38 .29 .55 .60 .26 .76 .77 .63 .69 .65 .13 .28 .11 .13 .05 -.07 .10 .07 .22 .10 .04 .03 1973 - J a n . Feb. Mar. Apr. 25.9 26.5 26.0 25.3 24.6 20.8 21.5 21.2 20. 7 20.1 5.1 5.0 4.8 4,6 4.5 .98 .59 -.59 -.65 -.74 .81 .69 -.38 - . 48 -.61 .17 -.10 -.21 -.17 -.13 May y ' "" < ' NOTES: Based r - data from Federal Home Loan Bank Board and Savings bunks Association of/New York State. Both series include a minor amount of nonresidential commitments; S&L commitments also include loans m process. Net changes are derived directly from unrounded end of period outstanding levels as reported and after seasonal adjustment by Federal Reserve Subtotals may not "<dd to totals because of rounding. NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN MILLIONS O F DOLLARS PERIOD MTER MEDIATE AND LONG-TERM ISSUES TOTAL MCLUOMG SHORT-TERM DISCOUNT MOTES TOTAL 1971 - Mar. Apr. May June July Aug. . Sept. Oct. lav. Bee. -439 -696 -388 -483 +$04 * +335 +453 +942 -96 +563 -100 -451 -453 -136 +411 +200 +526 +849 +300 +500 1972 • J a n . Feb. , Mar . Apr. May - June July Aug. Sept. Oct. *ov. Dec. -259 +169 +176 +138 +129 +599 -367 +120 +624 -112 +628 +273 +399 +248 -1 +299 4813 -1 -1 +100 -47 +311 +475 +131 +452 +582 +1,267 +1,769 +122 +312 +378 +1,303 +1,600 1973 - J a n . Feb. Mar. Apr. May FHLMC FHLB -450 -651 -452 -337 -39 -87 -28 +200 -250 mmmm —— — +300 - - — - - — —— —— +200 -403 -2 -1 -200 -1 . -1 -1 on d a t a from the Treasury Survey -—— -1 4814 — — — — - - +103 +337 -1 - - - - -25 +76 +116 +51 — +251 -1 +1,195 +1,200 of +602 +250 +500 - - +1 +400 T ' , ;. NOTES: Based +350 +200 -1 +201 +450 -13 +554 +649 +550 +500 — -- — FNMA Ownership. > +100 -150 -1 +400 +6 +10 +379 +107 SHORT-TERM DBCOUNT NOTES -339 -245 +65 -347 +193 +135 -73 +93 -396 +63 -259 -230 -72 +139 -170 -214 -366 +121 +524 -65 +317 -202 +9 +140 +204 -36 +169 T a b l e 12 NET CHANGE IN MORTGAGE HOLDINGS IN MILLIONS O F DOLLARS FINANCIAL INSTITUTIONS TOTAL INCLUDING FNMA-GNM* TOTAL 24,074 21,736 41,647 57,107 19,699 16,827 39,259 55,081 1972 - J u l y Aug Sept Oct Nov Dec 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 1973 - J a n Feb Mar Apr May r / 3,760 3,454 4,913 4,364 5,339 n.a. 3,565 3,388 4,844 4,368 5,503 n.a. 900 900 1,200 1,200 1,600 1,700 458 331 568 506 562 n.a. 1972 - J u l y Aug Sept Oct Nov Dec 4,849 5,471 4,748 4,714 5,282 5,697 4,593 5,179 4,714 4,738 5,212 5,601 1,451 1,477 1,155 1,393 1,524 1,164 1973 - J a n Feb Mar Apr May r / June 4,501 4,081 5,168 4,224 5,272 4,273 3,969 5,044 4,333 5,331 1,112 1,079 1,262 1,162 1,533 1,589 PERIOD 1969 1970 1971 1972 COMMERCIAL BANKS MSB's S & Us Not S e a s o n a l l y A d j u s t e d 5,404 2,682 9,561 2,462 1,845 10,172 9,940 3,938 24,160 15,999 5,377 31,982 INSURANCE FNMA-GNMA COMPANIES 2,052 2,348 1,221 1,723 4,375 4,909 2,388 2,026 2,758 3,313 2,926 2,673 2,712 3,101 79 97 90 139 255 1,112 164 368 137 95 130 132 2,045 2,128 2,999 2,991 3,250 3,296 162 39 77 -329 142 n.a. 195 66 69 - 4 -164 255 472 515 537 484 r 513 525 2,678 3,108 2,911 2,726 2,876 3,130 101 79 111 135 299 782 147 292 34 - 24 70 96 475 388 601 554 562 2,467 2,430 3,067 2,906 219 72 114 -289 187 228 112 124 91 - 59 334 S e a s o n a l l y Adlusted 3,100 2,794 NOTES: 1 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. 2 Beginning January 1972 data reflect activity in limited amount of conventional mortgages. H.16 T a b l e 13 NET INCREASE IN MORTGAGE DEBT OUTSTANDING 1 IN BILLIONS O F D O L L A R S , S E A S O N A L L Y A D J U S T E D ANNUAL R A T E S RESIDENTIAL QUARTER 1968 - 1969 - 1970 - 1971 1972 1973 - - - TOTAL TOTAL FAMILY MULTIFAMILY COMMERCIA1 MULTIFAMILYr & COMMERClAl FARM I 28.1 19.4 16.3 II 2.3 18.2 15.0 3.2 9.5 26.4 6.0 III 25.5 9.2 2.2 17.2 13.6 3.5 6.5 1.8 16.5 3.9 7.4 10.1 11.3 1.9 - IV 29.6 20.4 I 32.0 23.8 19.4 3.1 4.4 6.4 6.0 10.4 II 2.2 29.1 21.5 16.8 4.6 5.4 10.1 2.2 III 25.8 18.7 14.0 4.7 5.3 10.0 1.7 IV 25.2 18.5 13.1 5.4 5.3 10.7 1.4 I 20.7 9.4 5.0 4.8 9.8 1.5 II 22.9 16.8 11.6 5.2 4.6 9.8 1.5 III 28.5 21.3 14.4 15.0 6.3 5.1 IV 31.8 22.8 16.2 6 . 6 ^ - I 11.5 2.1 A 2.2 13 37.5 47.8 27.3 36.0 19.2 26.5 8.0 8.1 ^L6.1 2.2 II 9.4 9.5 18.9 2.3 III 52.2 38.9 30.1 8.8 11.1 IV 54.2 40.7 31.9 8.9 11.0 I 62.4 35.9 9.5 II 64.9 47.1 37.5 9.6 III 65.2 47.3 38.5 IV 68.4 50.6 40.2 57.9 46.9 11.0 I 77.0 45.4 . 19.8 2.3 19.9 2.5 23.9 2.6 15.2 24.8 2.6 8.8 15.2 24.0 2.6 10.4 15.4 25.8 2.5 16.1 27.1 3 .0 i NOTES: 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 natnly by Federal Reserve. 2 May differ somewhat from related flow of funds series mamiy because of mnn nygregative type of seasonal adjustment. 3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4 fnmi', -"H multifamily mortgage debt combined. < H.16 PRIVATE HOUSING PERMITS, STARTS, COMPLETIONS, AND MOBILE HOME SHIPMENTS IN THOUSANDS O F UNITS, SEASONALLY ADJUSTED ANNUAL RATES PERMITS PERIOD 1972 - J a n u a r y February March April May June July August September October November December 1973 - J a n u a r y February March April May£/ June TOTAL 1—FAMILY STARTS 2 - O R MORE FAMILY TOTAL 1—FAMILY COMPLETIONS 2 - O R MORE FAMILY TOTAL 1—FAMILY MOBILE 2 - O R MORE HOME FAMILY SHIPMENTS 2,204 2,056 2,007 ^1,991 1,955 2,121 2,108 2,237 2,265 2,216 2,139 2,377 1,098 959 954 963 923 989 1,013 1,031 975 1,086 961 947 1,106 1,097 1,053 1,028 1,032 1,132 1,095 1,206 1,290 1,130 1,178 1,430 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 1,968 2,088 1,983 1,954 1,891 1,904 1,891 1,973 1,972 1,945 1,980 2,147 1,154 1,141 1,137 1,154 1,121 1,125 1,095 1,210 1,118 1,156 1,153 1,168 814 947 846 799 770 779 799 763 853 789 828 980 554 552 595 634 572 583 556 534 494 548 666 606 2,218 2,191 2,071 1,834 1,804 1,057 1,068 989 923 1,161 1,123 1,082 911 884 2,497 2,456 2,260 2,123 2,417 1,450 1,372 1,245 1,202 1,272 1,047 1,084 1,015 921 1,145 2,147 2,033 2,153 2,047 1,324 1,259 1,302 1,145 823 774 852 902 648 642 737 680 2,099 1,221 878 662 1,087 2,119 1,129 990 1,969 920 882 NOTES: Private building permits (for 13,000 areas with permit systems, excluding farm), starts and completions are Census Bureau data, with completions converted to a seasonally adjusted annual rate by the Federal Reserve. A dwelling unit is started when excavation begins. In the case of apartment buildings, all units are considered started at that time; however, all such units are considered completed when half of the units in the structure are reedy for use. Private mobile home shipments ere Mobile Home Manufacturers Assoc. data converted to seasonally adjusted annual rata by Census Bureau. T a b l e 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES C ONVENTIONAL L O A N S PRIMARY M A R K E T NEW H O M E S , $ H U D ( F H A ) INSURED L O A N S S E C O N D A R Y MARKET EXISTING H O M E S NEW H O M E S 1 PERIOD RATE (IN PER CENT) SPREAD (BASIS POINTS) 1 SPREAD BETWEEN R E T U R N S ON NEW A a a CONVENTIONAL UTILITY AND HUD(FHA) BOND NEW HOME YIELD M O R T G A G E S (IN PER CENT) (BASIS POINTS) RATE (IN PER CENT) SPREAD (BASIS POINTS) YIELD (IN PER CENT) 52 01 8.05 7.65 62 06 7.97 7.32 31 07 7.8 2.7 28 01 8.04 7.28 SPREAD (BASIS POINTS) DISCOUNT (PERCENTAGE POINTS) 1971 - High Low 7.95 7.55 1972 - High Low 7.70 7.55 61 15 7.75 7.60 66 20 7.57 7.45 48 05 4.7 3.7 14 06 7.45 7.09 1972 - Feb Mar Apr May June July Aug Sept Oct Nov Dec 7 .60 7.55 7.60 7 .60 7.60 7.65 7 .65 7.70 7.70 7.70 7.70 26 31 15 22 28 27 28 30 32 61 55 7.65 7.60/ 7.65 7.70 7.70 7.70 7.70 7.75 7.75 7.75 7.75 31 36 20 32 38 32 33 35 37 66 60 7.46 7.45 7.50 7.53 7.54 7.54 7.55 7.56 7.57 7.57 7 .56 12 21 05 15 22 16 18 16 19 48 41 3.8 3.7 4.1 4.3 4.4 4.4 4.5 4.6 4.7 4.7 4.6 14 10 10 07 06 11 10 14 13 13 14 7.34 7.24 7 .45 7.38 7.32 7.38 7.37 7.40 7 .38 7.09 7.15 1973 - J a n Feb Mar Apr May 7.70 7.75 7.80 7.90 7.95 8.05 32 35 31 44 44 41 7.75 7.80 7.85 7.90 8.00 8.10 37 40 36 44 49 46 7.55 7.56 7.63 7.73 7.79 7.89 17 16 14 27 28 25 4.5 4.6 5.2 5.9 6.4 7.2 15 19 17 17 16 16 7.38 7.40 7.49 7.46 7.51 £ / 7.64 \ NOTES: 1 Gross yield spread is average mortgage return before deducting servicing costs, minus average yield on new issues of high-grade utility bonds with 5-year call protection. Rates on conventional first mortgages (excluding additional fees and charges) are based on unweighted HUD (FHA) field office opinions on prev* ung contract interest rates in the market areas of the insuring offices, rounded to the nearest 5 basis points. For secondary market data, weighted HUD office opinions on the average bid price In. HUD (FHA) loans with minimum downpayment, prepaid in 15 years, for immediate delivery, are used. HAS Table 16 FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS CONVENTIONAL GOVERNMENT-UNDERWRITTEN DATE O F AUCTION AMOUNT (IN M I L L I O N S O F D O L L A R S ) OFFERED 1972 - Oct Nov. Dec 1973 - J a n . Feb. Mar. | AVERAGE YIELD 10 16 30 271.2 186.4 224.9 162.7 7.73 7.74 6 13 27 78.7 60.8 ' 49.2 36.6 7.72 7.70 4 11 26 82.2 108.7 42.4 >66.3 7.68 7.69 2 8 22 74.2 107.0 61.3 92.1 7.69 7.70 5 6 19 21 5 6 * 19 21 AMOUNT (IN MILLIONS O F D O L L A R S ) OFFERED ACCEPTED 128.7 65.4 7.71 110.3 71.6 7.73 170.8 107.7 7.75 297.3 168.7 7.81 v | AVERAGE YIELD ACCEPTED 42.2 37.2 7.90 75.0 68.0 7.90 36.4 30.9 7.87 39.3 25.5 7.84 100.9 62.9 7.89 66.0 49.6 7.92 60.3 44.3 7.95 86.8 56.4 8.02 111.9 81.6 8.11 2 3 16 17 30 234.6 145.9 7.86 216.6 190.7 7.89 261.2 185.9 7.92 111.0 128.9 88.4 88.2 8.17 8.23 14 29 258.3 212.4 187.7 140.0 7.96 8.00 117.6 113.3 84.4 74.0 8.31 8.39 J u n e 11 25 184.5 199.3 142.2 118.7 8.04 8.09 110.1 95.0 74.1 69.4 8.44 8.51 July 9 23 539.0 351.4 108.0 119.0 72.5 61.7 8.67 8.79 Apr. May 244.8 181.4 8.38 8.54 NOTES: Average secondary market yields are gross before deduction of the fee of 38 basis points 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 Federal National Mortgage Association (FNMA) commitment fees and FNMA stock purchase and holding requirements on 4-month commitments. Mortgage amounts offered by bidders relate to total eligible bids received. ^ X
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