Full text of H.16 Capital Market Developments : December 13, 1971
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sunn DECONTROLLED AFTER SIX MOOTS L.5.8 Cnnfirlintigf if fl ) 2) L CAPITAL MARKET DEVELOPMENTS • • ' T A B L E 1: Y i e l d s , Volume and Reception WEEK ENDING: 1971 - Nov. Dec. YIELDS MOODY'S SEASONED NEW ISSUE 1 Aaa CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 5 12 19 26 7.05 7.12 7.23 7.17 7.25 7.24 7.27 7.28 552 584 488 183 80 79 68 74 n.a. n.a. 3 10 17 7.18 7.08 n. a. 7.28 7.27 n.a. 213 607 550e 85 64 n.a. n.a. n.a. n.a. 1971 - Nov. 5 12 19 26 YIELDS BOND BUYER MOODY'S SEASONED 20 SEASONED Aaa BOND INDEX 4.75 499 4.90 5.19 4.90 5.25 5.15 5.36 Dec. 3 10 17 5.20 5.00 n. a. WEEK ENDING: 5.44 5.23 n.a. MUNICIPAL BOND MARKET VOLUME2 PER CENT BONDS SCHEDULED GROSS SOLD BY END OF WEEK OFFERINGS WITHIN 28 DAYS 383 66 1,584 696 66 1,245 863 69 1,180 185 74 1,433 404 424 l,180e 86 90 n.a. 1,472 n.a. n.a. 1 D e r i v e d by a d j u s t i n g to a A a a basis, new issues of p u b l i c l y - o f f e r e d corporate bonds w i t h call p r o t e c t i o n , rated A , A a , or A a a byTloody's Investors Service (except serial and c o n v e r t i b l e issues, offerings of natural gas p i p e l i n e and foreign c o m p a n i e s , and bonds guaranteed by the Federal G o v e r n m e n t . ) 2 M i l l i o n s of dollars unless o t h e r w i s e indicated. Note: See footnotes to T a b l e 3 TABLE 2: Details on Inventories DATE OFFERED 12/9 12/9 12/8 12/8 12/8 12/6 11/29 11/29 11/15 OFFERED AMOUNT •(MIL. $ 26.0 50.0 54.0 30.0 200.0 40.0 15.0 12.0 75.0 DATE | RELEXSED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND 1 ESTIMATED PROYIELD CALL PROTECTION 1 PORTION SOLD ISSUER COUPON Pacific Ltg Svc 7 7.63 5 yrs 557= Clark Eq Credit 7.85 7.85 10 yrs 95% Burl. North. R.R. 3/8 7.38 A 85% N.C. Penna. Elec 7/8 7.70 . A 5 yrs 20% New York Tel 3/8 7.28 Aaa 5 yrs 20% Mich. Wise P/L 5/8 7.63 A 60% N.C. Iowa P & L. 5/8 7.58 Aa 5 yrs 80% Orange & Rock Util 8.00 7.90 Baa 5 yrs 50% So. Cent'1 Bell Tel 6 3/4 6.60 Aaa 5 yrs 98% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE .RATING AND ESTIMATED PROISSUER COUPON YIELD IN YIELD CALL PROT. PORTION RELEASED AMOUNT NONE MUNICIPALS DATE 1971 - Nov: TT 19 26 901 l,056r 993 3 10 792r 749 Dec. INVENTORIES 1 IN SYNDICATE " T60 453 280 148 80 CORPORATES IN SYNDICATE 214 288 145 59 231 N.C. - No call protection. 1 All figures in millions, of dollars. Blue List is daily average for week ended Friday, except for latest week which is daily average of three days ended Wednesday. All other figures are as of Friday. y T A B L E 3: High Grade Bond Y i e l d s DATE NEW CORPORATE Aaa 1 MOODY'S SEASONED \ CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S • SEASONED MUNICIPALS4 1969 - High LOW 8.85 (12/26) , 6.90 (2/21) 7.84 (12/26) 6.55 (1/12) 6.97 (12/26) 5.96 (1/24) 6.90 (12/18) 4.82 (1/28) 1970 - High 9.30 (6/19) 7.68 (12/18) 8.60 (7/3) 7.48 (12/31) 7.55 (5/29) 6.17 (12/18) 7.12 (5/29) 5.33 (12/11) 1971 - High Low 8.23 (5/12) 6.76 (1/29) 7.71 (8/13) 7.06 (2/12) 6.51 (6/18) 5.69 (3/23) 6.23 (6/24) 4.97 (10/21) Nov. 5 12 19 26 7.05 7.12 7.23 7.17 7.25 ' 7.24 7.27 7.28 5.79 5.84 5.83 5.93 4.99 5.19 5.25 5.36 Dec. 3 10 7.18 7.08 7.28 7.27 5.96 5.98 5.44 5.23 1 2 3 New corporate issues, with call protection, adjusted (as described in footnote 1 of Table 1) to a Aaa basis. Weekly average of daily figures. Average term of bonds included is 22-24 years. : W e e k l y a v e r a g e of daily 4 figures. 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. / T A B L E 4: Long-term Corporate and State and Local Government Security O f f e r i n g s and P l a c e m e n t s (In m i l l i o n s of d o l l a r s ) GROSS PROCEEDS CORPORATE V PERIOD 1971 1970 1969 January February March 3,115 3,000 .6,075 2,636 1,802 3,539 April May June 4,007 3,271 4,375 July August September October November December 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1970 1969 2,075 2,045 2,098 2,706 *' 1,340 1,839 -1,214 2,156 1,555 1,262 987 538 3,170 3,909 3,389 2,748 2,076 2,530 1,920 2,140 2,035 1,647 996 1,085 1,801 1,110 737 4,147 2,532 3,768 2,768 2,274 2,518 2,478 1,427 2,427 1,964 1,892 2,061 1,348 1,359 1,758 1,097 808 559 3,010e 2,777 4,182 3,980 1,933 2,375 2,532 1,696 1,924 1,748 2,190 1,280 886 816 12,190 11,654 10,447 7,977 10,468 8,560 11,939 6,218 7,354 6,332 6,840 6,701 6,095 5,917 4,109 3,728 4,465 5,862 2,787 3,648 2,464 2,982 23,844 34,291 18,445 27,005 38,944 13,572 19,904 26,744 12,796 ! 18,713 ! 7,837 12,302 18,164 6,435 8,899 11,881 : 1 2 3 STATE AND LOCAL 2 i - . 1971 i ! i Securities and Exchange Commission estimates of grdss proceeds. Investment Bankers Association of America estimates of principal amounts. Total gross proceeds excluding offerings of sales and consumer finance companies. TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH TOTAL GROSS PROCEEDS BY TYPE OF ISSUE COMMON BONDS : AND MEMO: PUBLICLY PRIVATELY PFD. ISSUES INCLUDED MFG. PLACED OFFERED STOCK FOREIGN | CONVERTIBLE GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS'1 868 1,,346 2,66^ 4,020) 1,606 : 896 2,,263 3,594 4,753 3,331 1970 - Ill IV 8,560 11,938 5,937 7,827 914 1,421 ~1,659 2,690 83 226 287 737 2, 314 3, 169 2,714 3,406 1971 - I II III 12,190 11,688 10,447 8,369 6,546 4,725 2,306 3,384 4,079 84 215 114 724 1,351 652 3, 794 3, 130 2,,202 3,197 2,910 2,651 1970 r Oct. Nov. Dec. 3,777 4,181 3,979 2,390 3,001 2,436 1,516 1,758 If" 304 283 834 1,083 898 709 56 11 159 388 184 165 1,,006 1,,107 1,,056 1,101 1,350 955 371 693 282 1,300 1,033 1,687 1971 - Jan. Feb. Mar. 3,115 3,000 6,075 2,033 2,201 4,135 594 275 647 489 524 1,293 43 3 38 99 168 557 716 661 2,,417 676 1,069 1,452 391 683 532 1,332 587 1,675 Apr. May June 4,042 3,271 4,375 2,116 2,148 2,282 507 491 760 1,419 633 1,332 U6 47 52 384 255 712 1,,135 588 1. ,206 1,267 588 .1,055 273 405 218 1,367 1,489 1,897 July r/ Aug. r/ Sept, 4,147 2,532 3,768 1,331 1,428 1,966 619 . 416 606 2,196 687 1,196 72 34 — "8 199 160 293 582 474 1 ,146 732 849 1,070 1,622 359 282 1,210 850 1,271 Oct. Nov. E/ 3,010 3,550 1,950 1,950 500 500 560 1,100 210 400 500 850 800 1,260 410 255 1,300 1,185 and finance, and commercial and other. Source: Securities and Exchange Commission, able. n. a. n.a. * - Quarterly supplements are avail- • / T A B L E 6: Large Long-term P u b l i c Security I s s u e s for New Capital (Other than U.S. T r e a s u r y ) 1 • ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) , MATURITY Nov. 29, thru Dec. 10, 1971 COUPON OFFER- MOODY'S RATE OR RATING ING NET INTERYIELD EST COST Corporate Minneapolis Gas Co Iowa Pwr & Light Co Houston Lighting & Pwr Co Gen'l Tel of Calif Delmarva Pwr & Light Co Hartford Elec Light Co Allegheny Pwr System Inc Cleveland Elec Illuminating Co Equity Funding Corp of America Michigan Wisconsin Pipeline Co Duke Pwr Co Duke Pwr Co Dominion Bankshares Burlington Northern Inc Burlington Northern Inc Penna Elec Co New York Tel Co Pacific Lighting Service Co Puerto Rico Tel S.F. debs 12.0 1st mtg 15.0 1st mtg 50.0 1st mtg 50.0 1st mtg 35.0 1st mtg 30.0 Com stk 43.9 Pref 50.0 Delis 38.5 Bonds 40.0 Notes 60.0 1st ref mtg 40.0 Debs 15,0 16.0 Eq tr S.F. certf 34.0 30.0 1st mtg Ref mtg 200.0 S.F. debs 26.0 Debs 35.0 1996 2001 2001 2001 2001 2001 7.88 7.63 7.50 7.63 7.63 7.63 7.88 7.58 7.37 7.63 7.55 7.55 A Aa Aaa A Aa Aa -- — — — — — — — 1991 1991 1978 2001 1996 1972-76 1986 2001 2011 1991 1996 5.50 7.63 6.85 7.38 7.75 7.38 7.88 7.38 7.88 8.10 x —- . 5.50 7.63 A 6.85 A 7.45 Aa 7.75 N.R. 5.00-6 .50 A Aa 7.43 7.70 A 7.28 Aaa 7.63 A 8.10 Ba 1- \ J T A B L E 6: Large Long-term Public Security I s s u e s for New Capital (continued) (Other than U.S. Treasury) 1 - Dec. 10. 1971 AMOUNT (MILLIONS 1 ISSUER TYPE 2 ' MATURITY OF DOLLARS) COUPON | R A T E OR iMTKR...NET INTERi;.<; EST C O S T | Y11.1,1) MOODY 1S RATING State and Local Connecticut, State of Oneida Co., N.Y. Oneida Co., N.Y. University of Texas Suffolk Co., N.Y. Penna, State of Penna, State of Chicago, 111. Milwaukee, Wise. Greater Anchorage Area Borough, Alaska New Jersey Hennepin Co., Minn Phoenix, Ariz. Albany Co., N.Y. Nassau Co., N.Y. Ann Arbor Pub Sch., Mich West Virginia G.O. G.O. G.O. 1 Rev. \ G.O. v G.O. G.O. Rev. G.O. 12.5 4.1 12.0 50.0 17.0 50.0 75.0 25.0 17.0 G.O. G.O. G.O. G.O. G.O. G.O. G.O. G.O. 10.0 75.0 10.7 10.0 70.0 48.9 12.9 40.0 J 1972-1981 1972-1996 1972-2001 1972-2002 1972-1995 1974-2001 1974-2001 1976-1986 1972-1991 1974-1992 1976-1995 1974-1990 1974-1979 1972-2001 1972-2000 1992-1997 1972-1996 —— —— -- 5.47 5.22 5.31 5.31 -- 4.63 6.03 4.80 4.28 3.15 5.37 —— 4.79 4.55 2.70-4. 25 2.75-5. 20 2.80-5. 25 2.75-5.70 2.90-5. 50 3.40-5.65 3.40-5. 76 3.90-4.00 2.85-5. 70 4.00-6,.20 3.50-5,.15 3.25-5,.00 3.15-3,.90 2.70-5,.75 2.75-5 .25 3.20-5 .35 2.65 Aaa A-l A Aa A-l A-l Aaa Baa Aaa Aa Aa A A A-l —— Rights offering. I n c l u d e s c o r p o r a t e and other security o f f e r i n g s of $15 m i l l i o n and over; S t a t e and local security o f f e r i n g s of $10 m i l l i o n and over. In case of State and local government s e c u r i t i e s , G.O. denotes genera I oh 1 i gaii on ; '<ev.-Ut., revenue o b l i g a t i o n s secured only by income from public utilitie Rev.-Q.-lit., revenue bonds secured only by income from quas i -ut i 1 i t i es ; v.-S.T. R revenue bonds secured by revenue from specific taxes only; Rev.-Rent venue b o n d s secured solely by lease p a y m e n t s . I n c l u d e s foreign government and I n t e r n a t i o n a l B a n k for R e c o n s t r u c t i o n and Development issues and n o n - q u a r a n t e e d issues by Federal A g e n c i e s . TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continue") ISSUER TYPE o f AMOUNT (MILLIONS OF DOLLARS) D e c e m b e r _ 10, 1 9 7 1 A P P R O X I M A T E DATE OF O F F E R I N G Corporate Alison Mtge & Inv Trust First TTnion Real Estate Equity & Mtge Inv. Gen'l Telephone Co of Indiana Heitman Mtge Investors Investors Div Sves Inc Philadelphia Elec Co Philadelphia Elec Co Connecticut Light & Pwr Co Alabama Pwr Co Alabama Power Co Coit International Inc. First National State Bancorp Long Island Lighting Co Hotel Investors Long Island Lighting Co U.S. Home Corp ; Atlantic Bancorp I Mony Mtge Inv Bell Tele Co of Pa Texas Elect SVC Oklahoma G & E Northern Natural Gas Co Pub SVC Co of Ind. Kentucky Power Co Carolina Power & Lt. Co. Lone Star Gas Co Louisiana Power & Lt. Co. Tampa Elect 2 & P Tele Co of Md 3en'l Tele Co of 111. Debs Debs Bonds Debs Debs 1st mtg 1st mtg Bonds 1st mtg Fref stk Debs Notes 1st mtg Debs 1st mtg Debs Debs Debs Bonds Bonds Bonds Debs Bonds Bonds Stk Debs Bonds Bonds Bonds Bonds 25.0 Dec. 13 20.0 18.0 Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 13 13 13 13 13 13 14 15 15 15 15 16 16 16 16 30.0 35.0 80.0 80.0 30.0 25.5 38.0 25.0 25.0 50.0 ^ 20.0 40.0-50.0 20.0 20.0 50.0 125.0 30.0 30.0 50.0 50.0 45.0 30.0 25.0 40.0 Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. 5 10 11 11 12 l? y 18 . 18 19 20 100.0 20.0 Jan. Jan. 25 27 60.0 11 T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) ISSUER - TYPE AMOUNT (MILLIONS OF DOLLARS) As of D e c e m b e r 10, 1971 APPROXIMATE DATE OF OFFERING State and Local Rhode Island N.Y. City ' . , Warwick, R.I. Chicago Public Bldg Com Okla Capitol Imp Auth Oregon, State of Oklahoma Indus Auth Orleans Parish Sch Bd HAA Ohio Dallas, Texas West Virginia Hsg. Dev. Fund Richmond,~Va Vermont Muni Bond Bank Industry Urban-Dev Agy., Cal NYC. Housing Devel Corp Ohio, State/of San Francisco, Cal L'Anse Creuse Public S/D, Mich St. Paul, Minn Los Angeles DWAP Philadelphia Sch Dist, Pa G.O. G.O. G.O. Rev. G.O. G.O. G.O. G.O. Bonds Rev G.O. & Rev. G.O. G.O. G.O. G.O. Rev. G.O. G.O. G.O. G.O. Rev. G.O. 26 .8 376 .8 11 .3 55 .0 17 .5 68 .0 29 .0 12 .0 253,.0 40..0 11..0 12..2 — 35,,0 20.0 10. 0 100. 0 60.0 37.0 22. 6 11.0 15.0 40. 5 Dec. Dec. Dec. Dec. Dec. ^ Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec'. Dec. Dec. Dec. Jan. Jan. Jan. Jan. Jan. March 13 14 14 14 14 14 14 14 15 15 15 15 15 16 16 7 10 17 18 26 7 Other Farmers Home Administration * Notes 350. 0 Dec. Included in table for first time.^. o-iivo-uuca v u i y u i a i c di.u u m e r issues or 31D m i n i o n G o v e r n m e n t issues of $10 m i l l i o n and over. and over; State and loc I n c l u d e s foreign g o v e r n m e n t and I n t e r n a t i o n a l Bank for R e c o n s t r u c t i o n and D e v e l o p m e n t issues and n o n - g u a r a n t e e d issues of Federal A g e n c i e s . Table 8 12 STOCK PRICES AND VOLUME STOCK P R I C E S 1 - TRADING VOLUME 2 * DATE NYSE INDEX 3 - D J . INDUSTRIALS AMEX * NYSE AMEX - High Low 8.0(1/31) 50.32 (5/14) 968.85 (5/14) 32.91 (1/13) 16.5 (3/29) 49.31 (7/29) 769.93 (12/17) 25.02 (7/29) 8.6 (8/29) " 3.6 (11/21) - High Low 52.36 (1/5) 842/00 (12/29) 27.02 (1/8) 18.5 (12/4) 37.69 (5/26) 631.16 (5/26) 19.36 (5/27) 7.8 (8/14) 7.1 (1/2) 1.8(8/14) - High Low 57.76 (4/28) 950.82 (4/28) 26.68 (4/28) 22.1 (2/12) 48.73 (1/4) 797.97 (11/23) 22.72 (1/4) 11.0 (8/13) 6.7 (2/12) 2.7 (8/13) Nov. 5 12 19 26 52.16 50.85 50.47 50.57 840.39 812.94 810.67 816.59 24.54 24.10 23.78 23.63 13.1 12.4 12.2 12.7 3.3 2.8 3.0 3.4 Dec. 3 10 53.51 53.99 859.59 856.75 24.60 24.99 18.6 16.3 4.5 4.2 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. 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: . Week From Dav January 3, 1969 July 7, .1969 January 2, 1970 July 3, 1969 December 31, 1969 Hay 1, 1970 3. 12/31/65 - 50 4. Average dollar value of shares listed. " 4 4-1/2 5 5 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 25 13 T A B L E 9: Security Credit END OF PERIOE CREDIT EXTENDED TO' MARGIN CUSTOMERS BY: BROKERS 1 | i;ANKS 2 f~ TOTAL 1 CUSTOMERS1 NET DEBIT BALANCES NET CREDIT ; CUSTOMERS' NET EXTENDED BY BROKERS AND FREE CREDIT DEALERS 3 BALANCES Outstanding: I. 1 I < 1 , ' 1970 - Oct. Nov. Dec. 4,010 4,010 4,030 2,270 2,320 2,303 6,280 6,330 6,360 (4) (4) (4) 2,163 ' 2,197 2,286 1971 - Jan. Feb. Mar. Apr. May ^June July Aug. Sept. Oct. 4,000 4,090 4,300 4,530 4,620 4,720 4,790 4,850 4,930 4,950 2,300 2,330 2,360 2,340 2,340 2,390 2,420 2,430 2,430 2,410 6,300 6,420 6,660 6,870 6,960 7,110 7,210 7,280 7,360 7,360 (4) (4) 2,452 2,743 2,798 2,660 2,550 2,440 2,210 2,200 2,100 2,150 90 -60 50 10 30 50 30 -30 30 30 -20 -60 " 120 240 210 90 150 100 70 80 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) Change; in Outstanding 1970 - Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. — 20 -30 90 210 230 90 100 70 60 80 20 '' — 50 30 10 — -20 • __ . -—— -•— —— --— -- -73 34 89 291 291 55 -138 -110 110 230 -10 100 60 . —— __ __ --—— — —— — 1 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. 2 " B a n k loans to o t h e r s than b r o k e r s and d e a l e r s for p u r c h a s i n g or c a r r y i n g secur i t i e s o t h e r than U . S . g o v e r n m e n t s . " T h e d i f f e r e n c e b e t w e e n c u s t o m e r s ' net debit b a l a n c e s and c u s t o m e r s ' n e t free credit b a l a n c e s , this figure r e p r e s e n t s the net credit extended by b r o k e r s and d e a l e r s to the n o n f i n a n c i a l p u b l i c . „ NOTE: W i t h the e x c e p t i o n of b a n k loan d a t a , figures are supplied by the N e w Y o r k S t o c k E x c h a n g e and are end of m o n t h d a t a . B a n k loans are for w e e k l y r e p o r t i n g large c o m m e r c i a l b a n k s . B r o k e r data i n c l u d e s loans for r e g u l a t e d securities; bank data i n c l u d e s loans for the p u r p o s e of p u r c h a s i n g or c a r r y i n g any s e c u r i t y , w h e t h e r 3 4 Series3 discontinued. 5 forChanges in series. 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SI 6%6(f9 5E9'rll 562*5 £00*18£6* 2 poisnTpy 31Va H1M0H0 IVflNNV siisoaaa — ---—— — 2*8 Z'£ 0e9 00%' 1 265' 1 169' 2 06% %22 501 £01' 1 0E1' I 628''1 88£ 8E1 8- £61':11 ; 002' 2E%': 6 30N 9 £6 £96£%!*! % i - 1 018' 1 916'!1 961' 3IVH MOia H1M0HD 13 N 1VI1NNV IVXIdVO 3HVHS SN0I1VID0SSV UV01 9 SONIAVS ATI NOW t 6 '9 0 '% 0 '6 jaquiaAON aaqo^oo aaquia^das - 99%'% 6% 5' 2 £02'%; MO 1A t 31VH 13 N HXMOHO -A3NOW M3N IVflNNV 13 N ESIIS0J3Q HVT003H SHNV9 SONIAVS IVniflN 0661 6961 8961 3iva (suoTIXTui $) S9UEipauua)U| AjB)isodaQ >juequoN je S/IAOIJ S6U|AES 01 3 1 8 V 1 71 TABLE 11: Mortgage Commitments at S e l e c t e d Thrift Institutions OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS & SAVINGS BANKS LOAN (N.Y. S T A T E ) ASSOCIATIONS DATE 1 / NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. S T A T E ) i/ f (Billions of Dollars, Se isonally Adjusted)— Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. 8.9 9.3 9.6 7.1 7.5 7.8 10.1 8.1 10.4 8.3 8.9 11.2 12.6 13.8 15.3 16.1 16.3 16.4 16.5 10.1 11.1 12.2 13.0 13.2 13.3 13.3 1.8 1.8 1.8 2.0 2.1 2.3 2.5 2.8 3.1 3.1 3.1 3.1 3.2 .25 .30 .35 .51 .36 .37 .34 .11 .28 .23 .25 .20 .60 1.16 1.01 1,21 .80 1.36 1.30 1.56 .77 .24 .07 .12 '.2% E/ .10 -.01 Based on data from Federal Home Loan Bank Board,and Savings Banks Associations of New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments inculde 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. .07 .01 .05 .20 .20 .29 .34 .05 .13 16 TABLE 12: Net Change in Mortgage Holdings DATE TOTAL INCLUDING FNMA-GNMA 1 F I N A N C I A L INSTITUTIONS LIFE MUTUAL 1SAVINGS &| SAVINGS TOTAL 1 COMMERCIAL LOAN 1 INSURANCE BANKS . 1 BANKS | ASSOC. 1C O M P A N I E S 1 F:;MA-GNMA Not S e a s o n a l l y A d lusted 1967 1968 1969 1970 £ / 20,016 23,781 24,189 21,822 18 21 19 16 ,219 ,273 ,814 ,913 4,639 6,677 5,404 2,462 • 3,153 2,787 2,682 1,845 7,520 9,350 9,676 10,288 2,907 2,459 2,052 2,318 77 117 188 1970 - Aug. Sept. Oct. 2,072 2,318 2,207 1 ,673 1 ,956 I,, 8 4 0 300 500 300 182 216 164 1,114 1,123 1,188 1971 - Aug. Sept. Oct. M 5 6 r 4,094 n.a. 3 ., 9 3 0 3., 5 8 6 n.a. 1,000 1,100 900 415 272 414 2,391 2,122 1,992 ^ 124 92 n.a. ; | 1,797 2,508 4,375 4,909 399 362 367 ! 1 526r 508 456 Seasonally Adjusted 1970 1971 1 - Aug. Sept. Oct. Nov. Dec. - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 1,919 2,196 2,128 2,049 2,604 1,860 2,097 2,988 2,939 3,280 4,177 4,259 4 304r 3,995 n.a. 1,, 5 1 V 1,, 8 3 2 1,, 8 0 8 1,, 8 2 0 2,,504 1,, 8 9 3 2, 184 2, 996 2, 018 3, 273 3, 972 3, 898 3 , 770 3,486 n.a. 268 329 295 224 312 383 445 688 653 840 1,197 969 972 922 896 175 245 138 176 250 175 217 380 283 313 413 373 410 302 389 983 1,1041,175 1,289 1,710 1,311 1,425. 1,774 2,044 2,095 2,339 2,484 2,258 2,130 1,977 85 155 200 131 232 24 97 154 38 25 23 72 130 132 n.a. 408 364 320 , 229 100 -33 • -87— -8 -79 7 205 3 6 I 53 4 509 407 rr M o n t h l y data for c o m m e r c i a l banks based on Federal R e s e r v e estimates benchmarked to C a l l Report data on real estate loans o u t s t a n d i n g as a v a i l a b l e . O t h e r data derived from m o r t g a g e debt o u t s t a n d i n g as reported separately by N a t i o n a l A s s n . o f ' M u t u a l Savings B a n k s , Federal H o m e L o a n Bank B o a r d , Institute o f Life Insurance and, through A u g u s t 1968, the Federal N a t i o n a l M o r t g a g e A s s o c i a t i o n , and therea f t e r by FNMA and the G o v e r n m e n t N a t i o n a l M o r t g a g e A s s o c i a t i o n . Data for m u t u a l savings banks and for L i f e I n s u r a n c e c o m p a n i e s m a y differ somewhat from those derived from regular quarterly series because of m i n o r c o n c e p t u a l differences fpr which a d j u s t m e n t s are not made in the m o n t h l y series. A l t o g e t h e r , these grouos accounted for 8 4 per cent of the net increase estimated for all holders in 1 9 7 0 . 17 - TABLE 13: Net Increases in Mortgage Debt Outstanding 1 Billions of dollars, SAAR QUARTER 1 I ( ( ( ] TOTAL_ RESIDENTIAL3 MULTI-AND COMMERCIAL 1- to 4FAMILY MULTIFAMILY 2.6 2.1 5.5 4.1 8.1 6.2 2.2 1.8 COMMERCIAL FARM 1966 - II IV 18.6 15.1 10.9 9.1 8.3 7.0 1967 - I II III IV 15.9 20.7 26.6 27.3 10.3 13.9 19.2 19.8 7.0 10.5 15.3 16.0 3.3 3.4 3.9 3.8 3.9 5.0 4.9 4.8 7.2 8.3 8.8 8.6 1.8 1.8 2.5 2.8 1968 - I II III IV 27.7 26.2 26.0 29.6 19.0 18.2 17.7 20.2 15.8 15.0 14.1 16.4 3.1 3.2 3.4 3.8 6.4 5.9 6.5 7.5 9.6 9.0 10.1 11.3 2.3 2.2 1.8 1.8 1969 - I II III IV 31.3 28.9 26.5 25.1 25.0 21.5 19.3 18.3 18.6 16.9 14.6 13.0 4.4 4.7 4.7 5.3 6.2 5.2 5.3 5.4 10.6 9.9 1071 10.7 2.2 2.2 1.8 1.4 1970 - I II III IV 20.2 22.8 29.5 31.6 13.8 16.9 22.1 22.5 8.8 11.5 15.8 16.1 5.0 5.4 6.3 6.4 4.9 4.3 5.2 6.9 9.9 9.7 11.5 13.4 ... 1.5 1.5 2.1 2.1 1971 - Ip Hp 36.3 47.6 25.9 36.4 17.7 26.2 8.2 10.2 8.1 8.9 16.3 19.1 2.2 2.3 1 2 D e r i v e d from d a t a on m o r t g a g e d e b t o u t s t a n d i n g from F e d e r a l D e p o s i t I n s u r a n c e Corporation, Federal Home L o a n B a n k Board, Institute of Life Insurance, National A s s o c i a t i o n of M u t u a l S a v i n g s B a n k s , D e p a r t m e n t s of C o m m e r c e and A g r i culture, Federal National Mortgage Association, Federal Housing Administration, V e t e r a n s A d m i n i s t r a t i o n a n d C o m p t r o l l e r of the C u r r e n c y . S e p a r a t i o n of n o n farm m o r t g a g e d e b t by type of p r o p e r t y , w h e r e not a v a i l a b l e , and i n t e r p o l a t i o n s and e x t r a p o l a t i o n s , w h e r e r e q u i r e d , e s t i m a t e d m a i n l y b y F e d e r a l R e s e r v e . M a y d i f f e r s o m e w h a t from related flow of funds series m a i n l y b e c a u s e o f m o r e 3 a g g r e g a t i v e . t y p e of s e a s o n a l a d j u s t m e n t . R e s i d e n t i a l m o r t g a g e d e b t i n c l u d e s n o n f a r m o n l y and 1 and m u l t i f a m i l y m o r t g a g e d e b t . c o m b i n e d . is sum of 1 - t o 4 - f a m i l y T A B L E 14: FNMA Weekly " A u c t i o n " R e s u l t s IMPLICIT YIELD2(per cent) C O M M I T M E N T S IN $ M I L L I O N S ACCEPTED WEEK ENDED TOTAL OFFERED TOTAL 3 1 / m o .If 6MONTH July 26 686.2 183.4 183.4 — Aug. 25 634.6 153.5 153.5 — Sept. 7 20 445.2 437.5 188.6 193.0 188.6 193.0 — 4 18 365.1 219.8 194.8 103.6 194.8 103.6 — 1 15 126.0 145.3 56.4 102.0 56.4 102.0 Oct. Nov. — 1-YEARN & OVER 3-4 months 1/ — 8.07 — 7.97 —— 7.88 7.86 6MONTH 1-YEAR & OVER — 1 — — — ,1 7.85 7.83 -- 7.77 7.70 -- • __ ; T Note: Under the FNMA auction system, approved sellers of G o v e r n m e n t u n d e r w r i t t e n m o r t g a g e s bid for FNMA forward purchase c o m m i t m e n t s , 1 For " p r o p o s e d c o n s t r u c t i o n " of new h o m e s only. 2 A v e r a g e secondary m a r k e t yield after a l l o w a n c e for c o m m i t m e n t fee and required p u r c h a s e and h o l d i n g of FNMA stock, assuming prepayment of 15 years for 30-year G o v e r n m e n t - u n d e r w r i t t e n m o r t g a g e s . Y i e l d s shown are gross, b e f o r e d e d u c t i o n of 3 8 b a s i s points fee paid by investors to s e r v i c e r s . I 3 S h o r t - t e r m c o m m i t m e n t s c o n v e r t e d from a 3 to a 4 m o n t h b a s i s b e g i n n i n g 1 O c t o b e r 18, 1971. 19 T A B L E 15: STARTS SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE TOTAL UNADJUSTED TYP E OF FINANCING FHA VA OTHER ) - Oct. Nov. Dec. 1,583 1,693 2,054 890 934 1,240 693 759 814 140.9 126.9 121.4 40.4 33.7 63.2 L - Jan. Feb. Mar. Apr. May June July Aug. r/ Sept. r/ Oct. £/ 1,725 1,754 1,959 1,912 1,975 2,000 2,229 2,258 1,948 2,050 • 946 985 1,048 1,098 1,124 1,177 1,187 1,212 1,175 1,152 779 769 911 814 851 823 1,042 1,046 773 898 110.6 102.2 167.9 201.1 198.5 193.8 194.3 204.5 169.5 182.0 32.2 4.6 27.a 4.7 33.4 6.9 44.6 8.5 40.7 -8.4 46.1 9.3 42.9 9.2 45.8 9.4 48.3 8.7 8.1 DATE 1 2 ' Private Housing Starts and Permits ;" 5.8i 5.5> 5.7 BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 94.7 87.2 52.5 1,523 1,487 1,768 72.8 68.4 127.6 148.0 149.4 137.8 142.2 149.3 112.5 1,635 1,563 1,627 1,638 1,927 1,849 2,052 2,006 1,900 2,215 Total starts are Census estimates including farm for both permit-issuing and noii-issuing areas. A dwelling unit is started when excavation begins; all ugits 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 before January 1963 are Census estimates for about 10,000 areas identified as having a local building permit system in 1959. Estimates beginning January 1963 are for approximately 12,000 and beginning January 1967 13,000, or all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per month, as well as other differences in timing and coverage. 20 TABLE 16: Mortgage and Bond Y i e l d s MORTGAGES DATE 30-year 1969 - H i g h Low 8.62 1970 - H i g h Low CONVENTIONAL MORTGAGES 3 | NEW S P R E A D BEAaa CORTWEEN YIELDS ON C O N V . % PORATE . FHA M O R T BONDS GAGES 5 I S P R E A D BETWEEN YIELDS ON NEW C O R P O R A T E BONDS AND FHA M O R T G A G E S 6 1.08 8.35 7.55 -.13 -.40 9.29 8.40 8.60 -.10 8.30 -.74 9.11 7.80 1971 - H i g h Low 7.97 7.32 7.95 7.55 .28 8.01 -.19 7.24 1971 - M a y June 75 89 7.65 7.70 -.10 -.19 8.01 97 92 -7.84 7.80 7.85 7.85 -.17 -.07 .01 7.96 7.65 7.44 .27 .40 7.75 7.80 .05 7.29 .46 July Aug. Sept. Oct. 7.99 8.75 6.91 7.90 -.13 .99 .01 .40 -.36 -.26 -.01 .01 N e i t h e r m o r t g a g e nor bond yields i n c l u d e a l l o w a n c e for servicing costs which are m u c h h i g h e r for m o r t g a g e s than for b o n d s . G e n e r a l l y , b o n d s p a y interest semiannually; m o r t g a g e s , m o n t h l y . M o r t g a g e y i e l d s , if computed as equivalent to ' a s e mi-annual interest i n v e s t m e n t , would be slightly h i g h e r than given in the table. • Based on F H A - f i e l d - o f f i c e opinions about a v e r a g e bid prices in the private secondary m a r k e t for n e w - h o m e m o r t g a g e s for i m m e d i a t e d e l i v e r y . Data shown are for 3 0 - y e a r m o r t g a g e s w i t h m i n i m u m d o w n p a y m e n t s , and w e i g h t e d by p r o b a b l e v o l u m e of t r a n s a c t i o n s . Y i e l d s c o m p u t e d by F H A , a s s u m i n g p r e p a y m e n t p e r i o d of 15 y e a r s for 3 0 - y e a r m o r t g a g e s . Based o n F H A - f i e l d - o f f i c e o p i n i o n o n t y p i c a l interest r a t e s (rounded) o n c o n v e n t i o n a l first m o r t g a g e s p r e v a i l i n g in the m a r k e t areas o f insuring office cities. , S e e n o t e for Table 1. Y i e l d spread e q u a l s c o n v e n t i o n a l m o r t g a g e rate less F H A s e c o n d a r y m a r k e t y i e l d . Y i e l d spread e q u a l s FHA s e c o n d a r y m a r k e t yield less n e w A a a c o r p o r a t e b o n d yield. TABLE 17: Conventional Mortgage Terms DATE N E W HOMES CONFEES & T R A C T CHARGES EFFEC- MATURITY RATE (PER (YEARS) TIVE (PER CENT) RATE CENT) 2 3 1970 Oct. Nov. Dec. 1 LOAN/ PRICE LOAN RATIO A M T . (PER ($000) CENT) 4 EXISTING HOMES CONFEES & LOAN/ T R A C T CHARGES EFFEC- M A T U - PRICE (PER RATE TIVE RITY RATIO (PER CENT) RATE (YEARS) (PER CENT) CENT) 2 3 LOAN AMT. ($000) 4 - 8.33 8.26 8.20 1.05 0.99 1.07 8.51 8.43 8.38 25.1 25.3 25.8 72.4 72.1 73.8 24.8 25.2 25.8 8.20 8.18 8.12 0.88 0.85 0.85 8.35 8.32 9.26 22.8 22.7 23.3 71.5 71.5 71.9 20.5 21.1 21.7 8.03 7.74 7.52 7.37 7.36 7.38 7.51 7.60 7^ 6 7 7.67 0.92 1.00 0.83 0.73 0.71 0.74 0.90 0.84 0.97 0.96 8.18 7?91 7.66 7.49 7.47 7.50 7.66 7.74 7.83 7.83 25.8 26.2 25.9 26.3 26.1 26.3 26.3 26.2 25.8 26.5 73.3 73.9 73.7 73.6 74.0 73.7 74.5 73.9 75.3 75.6 26.4 26.2 26.0 26.2 26.7 27.2 27.1 26.5 25.9 26.3 7.94 .7.67 7.47 7.34 7.33 7.38 7.50 7.58 7.63 7.62 0.82 0.79 0.77 0.75 0.71 0.74 0.75 0.76 0.78 0.78 8.08 7.80 7.60 7.47 7.45 7.50 7.63 7.71 7.76 7.75 23.5 24.0 24.1 24.2 24.0 24.3 24.2 24.5 24.2 24.2 72.5 73.1 73.5 73.6 73.2 73.9 74.5 74.2 74.5 74.6 22.0 22.5 23.0 23.1 23.3 28.3 23.2 ; 23.5 22.5_ 23.0 1971 ; Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 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 mortgagfe 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. Derived by FRB.