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lSBmr

L.5.8

DECONTROLLED

AFTER SIX MONTHS

Confidential ( P R . )

December 1 8 ,

CAPITAL
MARKET
DEVELOPMENTS

Capital Markets Section, Division of Research»and Statistics,
Board of Governors of the Federal Reserve System, Washington, D. C.




1972

INDEX

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 M u n i c i p a l B o n d M a r k e t s
C a p i t a l Market Y i e l d s
C a p i t a l Market V o l u m e
Stock Market
Mortgage Market

SYMBOLS:

e

Estimate

p

Preliminary

r

Revised

n.a.

Not a v a i l a b l e




TABLE 1: Yields, Volume and Reception
YIELDS
MOODY 1 S
tfEW ISSUE
SEASONED
Aaa
2
Aaa
UTILITY
7.18
7.28
7.16
7.12
7.12
7.09
6.99

WEEK ENDING:
1972 - Nov.

3
10
17
24

Dec.

1
8
15
22

WEEK ENDING:

1972 - Nov.

Dec.

1

• 2

3
10
17
24

7.07
7.05
7.08

7.05
7.15
7.21

YIELDS
BOND BUYER
MOODY 1 S
SEASONED 20
NEW ISSUE
BOND INDEX
Aaa
5.04
4.90
5.10
5.00
5.01
4.90
4.96
|
4.85

1 ;
8
15
22

4.90
4.85
4.90

4.99
4.96
5.03

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
n.a.
100
120
n.a.
125
75
n.a.
170
79
n.a.
366
74
622
340
477
150e

76
75
80

n.a.

MUNICIPAL BOND MARKET
VOLUME 2
GROSS
OFFERINGS

PER CENT
SOLD BY END
OF WEEK

340
331
457
352

71
39
85
84

407
881
575
209e

58
76
65

BONDS SCHEDULED
WITHIN 28 D A Y ^
654
"V
1,548
1,431
1,279
1,203
569
255

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). For additional
details and back data, see the September 1972 issue of the Federal Reserve Bulletin.
The Aaa corporate yield series previously published in the L.5.8. has been discontinued.
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
ISSUER,
YIELD CALL PROTECTION
COUPON

AMOUNT
(MIL. $)
15.0
100.0
50.0
40.0

12/7
12/12
12/13
12/14

DATE
OFFERED 1 RELENSED
12/5
12/7

12/11
12/13

7
6
7
7

United Tele of Fla.
BankAmerica
Avco Fin Sus
Duquesne Light

7.43
6.70
7.63
7.32

A

' Aa

•

30%
40%
75%
40%

5 yrs
8 yrs
5 yrs

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RAflNG AND ESTIMATED PROISSUER
AMOUNT
COUPON
IN YIELD CALL PROT. PORTION RELEASED
YIELD
7 3/8
7 1/2

Duke Pwr
Cameron Fin

75.0
40.0

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE

1/2
5/8
5/8
1/4

ESTIMATED PROPORTION SOLD

7.33
7.55

Aa

+12
+6

5 yrs
10 yrs

50%
10%

CORPORATES
IN SYNDICATE

1972 - Nov.

17
24

924
954

126
136

36
121

Dec.

1
88
15

964
1,015r
n.a.

249
322
383

149
85
108

N.C. - No call protection.
1
All figures in millions of dollars. Rive List is daily average for veok ended Friday, except for latest v.cek
which if daily average of three days endvd Wednesday. All other ficures are as of Friday.
Z
"
for FRASER

Digitized


TABLE 3: High Grade Bond Yields

DATE

NEW ISSUE
Aaa
UTILITY

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER 1 S
SEASONED
MUNICIPALS 4

1970 - High
Low

9.43 (6/19)
7.72 (12/11)

8.60 (7/3)
7.48 (12/21)

7.55 (5/29)
6.17 (12/18)

7.12 (5/29)
5.33 (12/11)

1971 - High
Low

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

7.71 (8/13)
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)

6.19 (4/14)
5.74 (11/17)

5.54 (4/13)

1972 - Nov.

24

6.99

7.09

5.76

4.96

Dec.

1
8
15

7.05
7.15
7.21

7.07
7.05
7.08

5.82
5.87
5.93

4.99
4.96
5.03

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 for individual series and may be on different dates
for different series.




TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
STATE AND LOCAL 2

CORPORATE 1

PERIOD

1970

1972

1971

1970

j

1972

1971

January
February
March

3,205
3,369
3,229

3,115
3,000
6,075

2,636
1,802
3,539

1
j
!

1,776
2,002
2,237

2,732
1,851
2,258

1,340
1,214
1,555

April
May
June

3,275
3,598
4,341

4,042
3,300
4,375

3,170
3,909
3,389

j
1

1,988
2,002
2,260

1,891
2,167
2,013

1,647
996
1,00:

July
August
September

3,582
3,013
2,750

4,147
2,532
3,768

2,768
2,274
3,518

1
!

1,800
1,951
1,693

1,989
1,903
2,098

1,348
1,359
1,758

October
November
December

3,500e
3,050e

3,387
3,704
3,673

3,777
4,182
3,980

2,155
l,800e

1,728
2,264
2,068

1,924
1,748
2,190

9,803
11,214
9,345

12,190
11,688
10,447
10,764

7,977
10,468
8,560
11,939

6,015
6,250
5,444

6,841
6,081
5,990
6,060

4,109
3,728
4,465
5,862

21,017
30,362

23,844
34,325
45,089

18,445
27,005
38,944

12,265
17, 709

12,912
18,902
24,962

7,837
12,302
18,164

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

1
2

j

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




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

'CARTER
OR
MONTH

TOTAL

CROSS PROCEEDS BY
GROSS PROCEEDS BY
TYPE OF ISSUE
TYPE OF ISSUER
COMMON
BONDS
AND
MEMO:
COMMUNIPUBLIC
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
UTILITY
CATIONS
OFFERED
PLACED
STOCK
FOREIGN | CONVERTIBLE
4, 725
1 641
4, 079
114
652
2,202
2, 651
2 ,263
5, 135
2,439
3,193
133
767
2,543 3, 041
1 ,053

OTHER
ISSUERS

1971 - Ill
IV

10,447
10,764

1972 - I
II
III

9,805
11,214
9,345

5, 361
4, 634
4, 192

1 ,593
2 ,781
1 ,893

2, 851
3, 798
3, 259

74
245
68

511
449
838

1,525
2,109
1,749

2, 261
3, 495
2, 701

1 ,476
1 ,369
856

4,541
4,240
4,038

1971 - Oct.
Nov.
Dec.

3,387
3,704
3,673

1,942
2, 003
1,
,190

723
433
1 ,283

723
1,
,269
1,201

59
62
12

222
395
150

662
811
980

933
1, 217
891

432
269
352

1,3.60
1,408
1,450

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

3,275
3,598
4,341
3,582
3,013
2,750
3,500
3,050

1,
,622
,676
1,
,336
1,
1,
,807
1,523
862
1,
,650
,350
1,

789
774
1 ,218
657
431
805
650
650

864
15
92
581
1,
,219
1,
,148
100
226
761 . 738
1,
,786
130
131
767 1,
,538
1,
,118
3
450
574
798
1,
,058
13
183
559
635
1.
,083
52
205
616 1,
,268
1.
,200
n.a.
150
350 1,
,200
1.
,050
n.a.
150
\
125
885
Other issuers arc extractive, railroad and other transportation, real
and finance, and commercial and other.
'
Source': Securities and Exchange Commission. Quarterly supplements are available.

178
391
800
586
237
33
360
760

1,297
1,708
1,235
1,624
1,581
833
1,590
1,280

Apr.
May
June
July
Aug.
Sept.
Oct.e/
Nov.e/




3,331
4,164

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

,

!

ISSUER

TYPE

2

Dec. 4 through Dec.
AMOUNT
(MILLIONS
OF

MATURITY

DOLLARS)
Kentucky Utilities
Guardian Mtge Investors
Duke Pwr
,
Cameron Financial Corp
\
General Public Utilities Co
San Diego Gas & Elect
Centennial Corp
First Va. Bankshares Corp
Arkansas Pwr & Lt.
A r k a n s a s P w r & Lt.
Tampa Elect
Pacific Gas & Elect
U n i t e d T e l e of Fla.
National Rural Util Coop F i n
Talley Industries
Southwest Forest Ind.
BankAmerica
Georgia Pwr,
Union Electric
Union Electric Co.
Barnes Mortgage Investment
Energy Ventures Inc.
Avco Financial
Duquesne Light
Duquesne Light
McCulloch Prop Credit
S e d c o M a r i t i m e Inc.
Sedco Maritime
Zapata Exploration Co.




<
V

1st m t g e
Notes
1st m t g e
Debs
Com.
C o m stk
C o n v debs
Notes
Bonds
P r e f stk
Com stk
P r e f stk
1st m t g e
Coll trust
Debs
Pref stk
Notes
1st m t g e
Pref stk
P r e f stk
B e n e . int.
Com
Debs
1st m t g e
C o m stk
Bonds
G o v ' t gar.
G o v ' t gar.
C o n v deb s

35.0
25.0
75.0
40.0
34.3
30.8
25.0
25.0
15.0
20.2
18.8
55.8
15.0
50.0
25.0
20.0
100.0
150.0
55.0
55.0
35.0
19.0
50.0
40.0
35.0
30.0
56.0
22.0
25.0

2002
1979
2002
2002

COUPON
R A T E OR
N E T INTEREST C O S T
7 3/8
7 1/2
7 3/8
7 1/2

. OFFERn.r.
YIELD
" 7.23
7.55
7.33
7.55

8 , 1972

MOODY'S
RATING
Aa
--

Aa

---

1992
1982
2002
--

2002
2007
1997
--

1980
2002

4.00
7.00
7 1/2
7.40-

—

4.00
7.00
7.40
7.38
--

7 1/2
7 1/2
•8 1/8
6.00
6 5/8
7 1/2

8.00
7.43
7.43
7.17
6.00
6/70
7.50

7.44

7.44

——

--

--

--

1997
2002

--

——

-7 5/8
7 1/4

--

—-

1982
1992

7.70
7.15

--

1979

A
A
Baa
——
——

A
——

——
--

--

A

--

-——

—

—-

5 1/2

7 6/3
7.32
--

7.70
7.15
5.70-6.55
5.50

--

Aa
——
--

Aaa
Aaa
--

/

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

ISSUER
State and Local
Atlanta, Georgia
Atlanta, Georgia
Mass St. Coll. Bldg. Auth
Prince Georges Co., Md.
New York City
Piano ISD, Texas
University, Texas
H.A.A.
Beaver Co. Ind. Dev. Auth, Pa.

TYPE '

AMOUNT
(MILLIONS
OF
DOLLARS)

Rev-ref
Rev-ref
30.3
Rev.
33.1
G.O.
32.5
G.O.
294.0
G.O.
10.0
Rev.
17.0
268.2
Bonds
Pol. Cont.
Rev.
22.5
Los Angeles Parking Auth, Calif.Rev.-ref. 2 6 . 9
v
Tew Jersey
G.O.
75.0
Maricopa Co., Ariz
G.O.
15.0
Richmond, Va.
G.O.
38.0
Los Angeles DWAP
Ref rev
8.2
Ref rev
Los Angeles DWAP
44.7
Los Angeles DWAP
Ref rev
55.1
Los Angeles DWAP
Ref rev
8.2
New York St. Dormitory Auth
Rev.
32.8
Penna Higher Ed. Fac. Auth
G.O.
14.4
Rochester, N. Y.
Swr rev
15.8
Rhode Island, State of
G.O.
19.3
3rie Co. Hosp Auth, Pa.
Rev.
42.9
New Jersey Finance Agency
Rev.
49.0
*
1

MATURITY
1974-1983
2000
1973-2013
1974-1998
1974-2013
1975-1998
1973-2013
1997
1973-1992
1978-2003
1974-1983
1974-1993
2000
1978-1992
2010
1981-1990
1974-2003
1974-2013
1973-1992
1973-1992
1973-2001
1974-2021

np.cp.mhp.r 6 t h r o u g h necemher 15, 1972
COUPON
RATE OR
MOODY'S
OFFER
NET INTERINC
RATING
EST COST
YIELD
3.50-5.00
5.64
2.90-5.25
3.10-5.40
4.98
3.50-6.00
4.94
3.50-5.50
4.88

4.82
4.36
4.57
5.08
5.08
5.08
5.26
5.28

2.50-5.00

Aaa

5.60
4.40-5.05
3.80-5.00
3.10-4.30
3.10-4.90

Aaa
Aa
Aa

3.80-4.95
5.20
4.20-4.85
3.30-5.45
3.25-5.50
3.00-4.95
3.70-5.00

5.66
5.26

Rights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
2
In case of State and local government securities, G.O. denotes general obligations;
Rev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secure^ solely by lease payments.
3
Includes foreign government and,International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal Agencies.
for FRASER

Digitized


A
A
Aaa
Aa
A
Aa

10
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
As of December 15. 1972

ISSUER
First Amtenn Corp
First Nat'1 Boston
Borg Warner Acceptance Corp
Continental Illinois Realty
Public Svc of Indiana
Penn Pwr & Lt
Fla Pwr & Lt
*Duke Pwr
Central Pwr & Lt
Montana Pwr
Okla. Gas & Elect
Maine Yankee Atomic
Maine Yankee Atomic
*Detroit Edison
*Cincinnati Gas & Elect
*Philadelphia Elect
*Northern States Pwr
*New York State Elect & Gas
Continental Illinois Corp




TYPE
Bonds
Bonds
Bonds
Bonds
Pref
Bonds
Bonds
Cm
Pref
Bonds
Cm (rts)
Bonds
Pref
Bonds
Cm
Bonds
Bonds
Cm
Notes

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

25.0
100.0
25.0
25.0
35.0
80.0
70.0
75.0
26.0
25.0
45.0
15.0
15.0
100.0
42.0
100.0
50.0
25.0
100.0

December
December
December
December
January
January
January
January
January
January
January
January
January
January
January
January
January
January
January

19
20
20
20
4
8
9
9
10
10
10 .
11
11
15
18
22
24
24

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)
As of Dec. 15, 1972

1
ISSUER
State and Local
. Newark, N. J. ,
•Puerto Rico
Oklahoma Cap Imp Auth
; Dallas, Texas
Hartford, Conn
.Atlanta, Ga.
.Monroe Co. Mich.
Garland, Tex
Hampton Rds Sanitation Dist,
Va.
Los Angeles Dept of Wtr & Pwr.

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

G. 0.
G.O.
Rev.
G.O.
G.O*
Airport-rev
Pal control rev
Rev.

20.0
50.0
13.5
28.5
25.0
38.5
57.0
10.5

Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Jan.

19
20
28

Swr Rev
Elec rev

25.0
50.0

Feb.
Feb.

1
7

100.0

Jan.

16

16

Other
G.O.

*T.V.A.

Included in table for first time.
~
Includes corporate and ether issues of 515 million and over; State and local
Government issues of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.




12

STOCK PRICES AND VOLUME
STOCK PRICES1'

TRADING VOLUME 2 '

DATE.
NYSE INDEX 3 *

D J . INDUSTRIALS

AMEX 4 -

NYSE

AMEX

1970 - High
Low

52.36 (1/5)
37.69 (5/26)

842.00(12/29) 27.02 (1/8)
631.16 (5/26) 19.36 (5/27)

18.5 (12/4)
7.8 (8/14)

7.1 (1/2)
1.8 (8/14)

1971 - High
L
Low

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

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

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

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

»
1972 - High
Low

65.14 (12/11) 1036.27 (12/11 )28.53 (4/14)
56.23 (1/3)
889.30 (1/3) 25.61 (1/3)

21.8 (11/10)
11.2 (9/8)

7.4 (3/10)
2.6 (9/8)

I - Nov.

3
10
17
24

62.52
62.33
63.25
64.12

984.12
995.26
1005.57
1025.21

26.14
26.14
26.15
26.32

18.4
21.8
20.1
19.8

4.0
4.3
4.2
4.2

Dec.

1
8
15

64.29
65.01
64.63

1023.93
1033.19
1027.24

26.61
26.78
26.53

19.3
18.7
17.4

4.8
4.9
4.0

Figures other than highs and lows are Fridays only.
Highs and lows are for the year and are not necessarily for Fridays.
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 27-1/2 hours per week.
In recent years, however abbreviated trading to the extent, and over the time periods, shown below:
Through:
January 3, 1969.
July 7, 1969
January 2, 1970

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

12/31/65 - 50
4.

Average dollar value of shares listed.




13
TABLE 9: Security Credit

END OF PERIOD
Outstanding:
1971 - Oct.
Nov.
Dec.

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS 1 | BANKS 2 | TOTAL

(4)
(4)
(4)

2,160
2,170
2,220

(4)
(4)
(4)

8,190
8,690
9,140
9,540
9,760
10,160
10,350 r
10,560
10,630
10,650

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

2,488
2,542
2,512
2,459
2,330
2,231
2,245
2,117
2,056
2,097

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

2,410
2,400
2,440

1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Outstanding
Changes
1972 - Oct.
Nov.
Dec.

5,700
6,180
6,620
7,010
7,200
7,510
7,660
7,780
7,800
7,800

2,490
2,510
2,520
2,530
2,560
2,650
2,690r
2,780
2,830
2,850

20
-40
490

-20
-10
40

-50
530

1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.

300
480
440
390
190
310
150
120
20

50
20
10
10
30
90
50
90
50
20

350
500
450
400
220
400
200
210
70
20

1

2
3

4

NET CREDIT
CUSTOMERS' NET EXTENDED BY
BROKERS AND
FREE CREDIT
DEALERS 3
BALANCES

7,360
7,310
7,840

4,950
4,910
5,400

—

CUSTOMERS 1
NET DEBIT
BALANCES

60
10
50

—
—
-------—

.

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

—
—

—

-—

-—

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.
o
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
The difference between customers' net debit balances and customers' net free credit balances, this figure represents the net credit extended by brokers and
dealers to the nonfinancial public.
NOTE* With the exception of bank loan data, figures are supplied by the New York
Stock Exchange and are end of month data. Bank loans are for weekly reporting
large commercial banks. Broker data includes loans for regulated securities; bank
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or not.
Series discontinued




TABLE 10: Savings Flows at INonbank Depositary Intermediaries
($ millions)

DATE

1969
1970
1971

MUTUAL SAVINGS BANKS
NET
REGULAR DEPOSITS 3
NEW
ANNUAL
MONEY 2
GROWTH
NET
1
RATE
FLOW
2,549
4,517
9,623

1 9 7 1 - August
September
October

300
793
382

1972 - August 2J
September
October e/

418
1,025
475

1972 - April
May
June
July
*Augus t
September
October e/

820
576
937
798
665
917
704

\
2
3

4.0
6.8
13.5

--——

11.7
8.2
13.2
11.1
9.2
12.6
9.5

-763
936
5,678

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
ANNUAL
NET
GROWTH
MONEY 2
FLOW
RATE 1
Not Seasonally Adjusted
4,068
3.1
-1,003
10,965
8.1
5,285
28,244
19.4
20,652

195
105
224

1,538
2,670
1,600

310
223
n.a.

1,801
3,3,95
2,054

--

2,704
1,814
2,849
3,432
2,232
2,832
2,538

17.6
11.7
18.2
21.5
13.7
17.3
15.2

--—
—

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

6,617
15,482
37,867

NET
NEW
1 MONEY 2

3.4
7.7
17.5

1,052
1,091
1,504
--

j

1,409
3,463
1,982

----

1,708
1,494
n.a.

2,219
4,420
2,529

----

-1,766
6,231
26,330

__

3,524
2,390
3,786
4,230
2,897
3,759
3,242

*

2,018
1,717
n.a.

15.8

-—

1,247
1,196
1,728

10.5
16.6
18.3
12.3
15.8
13.5

——
-—
-—
-—

Annual growth rate for monthly data is the annualized monthly percentage increase in dvposits.
Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
insured associations only, which represent 96% of industry total resources.
Regular deposits at mutual savings banks exclude items such as Christmas club and certain
escrow accounts, which represent a very small part of total deposits.
SOURCE: National Association of Mutml. Savings Banks and Federal Home Loan Bank Board.




TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

OUTSTANDING COMMITMENTS
ALL
MUTUAL
SAVINGS
SAVINGS &
BANKS
LOAN
(N.Y. STATE)
ASSOCIATIONS

TOTAL

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollars, Sea sonally Adjusted)
Sept.
Oct.
Nov.
Dec.
72

l

16.4
16.3
16.6
16.6

13.2
13.1
-13.2
13.1

Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept. r/
Oct. £/

17.0
18.3
19.5
20.5
21.7
21.7
22.0
22.7
23.3
23.4

13.3
14.2
15.2
16.0
17.1
17.2
17.5
18.0
18.3
18.4

3.2
3.3
3.4
3.6

'

.07
.02
.20
.09

-.07
-.05
.08
-. 06

. 14
.07
.12
. 15

3.7
4.1
4.3
4.5
4.6
4.5
4.5
4.7
5.0
5.0

.30
1.34
1.19
.99
1.22
.40
.33
.67
.59
.11

.12
.97
.97
.79
1.13
.48
.39
.42
.33
.14

. 18
.37
.22
.20
.09
-.08
-.06
.25
.26
-.03

'
,
1

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.




5

16

TABLE 12: Net Change in Mortgage Holdings

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

1

FINANCIAL INSTITUTIONS
LIFE
MUTUAL o SAVINGS &|
COMMERCIAL
INSURANCE
SAVINGS
LOAN
BANKS
BANKS
ASSOC.
i COMPANIES

FNMA-GNMA

Not Seasonally Adjusted
1968
1969
1970
1971

23,781
24,074
21,736
41,647

21,273
19,699
16,827
39,259

6,677
5,404
2,462
9,940

2,787
2,682
1,845
3,938

9 ,350
9 ,561
10 ,172
24 ,160

2,459
2,052
2,348
1,221

2,508
4,375
4,909
2,388

1972 - MayJune
July
Aug.
Sept.
Oct.

4,958
5,724
4,872
5,931
5,286
n.a.

.4,674
5,692
4,717
5,563
4,918
n.a.

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

454
585
380
553
502
n.a.

2 ,720
3 ,453
2 ,758
3 ,313
2 ,926
2 ,682

24
54
79
97
90
n. a.

284
50
155
368
370

1971 - Aug.
Sept.
Oct.
Nov.
Dec.

4,111
3,886
3,753
3,847
4,371

3,654
3,471
3,413
3,558
4,118

974
957
983
909
862

381
306
340
468
524

. 2,
,195
2 S,106
2,
,028
2 :,101
2, 367

104
102
62
80
365

457
415
340
289
253

1972 - Jan.
Feb.
Mar.
Apr.
May-

3,456
3,828
4,464
4,363
4,908
5,189
4,731
5,471
4,981
n.a.

3,250
3,550
4,329
4,327
4,521
5,060
4,593
5,179
4,714
n.a.

1,112
1,178
1,264
1,361
1,434
1,489
1,451
1,477
1,155
1,393

290
315
464
400
453
516
363
515
537
n.a.

1, 871
2, 075
2, 596
2, 481
2, 567
2, 959
2, 678
3, 108
2, 911
2, 735

-23
-18
5
85
67
96
101
79
111
n.a.

206
278
135
36
387
129
138
292
267
n. a.

Seasonally Adjusted (r)

July
Aug.
Sept.
Oct.
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 nolf made in the monthly series. Altogether, these groups
accounted for 87 per cent of the net increase estimated for all holders in 1967.




17

TABLE 13: Net Increases in Mortgage Debt Outstanding
Billions of dollars, SAAR TOTAL

RESIDENTIAL 3

1- to 4FAMILY

1967 - I
II
III
IV

16.0
20.8
26.3
27.2

10.3
14.0
18.9
19.7

7.0
10.6
15.1
15.9

3.3
3.4
3.8
3.8

3.9
5.0
4.9
4.7

7.2
8.4
8.8
8.5

1.8
1.8
2.5
2.8

1968 - I
II
III
IV

28.1
26.4
25.8
29.4

19.4
18.2
17.4
20.2

16.2
15.0
13.9
16.3

3.2
3.2
3.5
3.9

6.4
6.0
6. 6
7.3

9.5
9.2
10.1
11.2

2.3
2.2
18
1.9

1969 - I
II
III
IV

31.8
29.1
26.2
24.9

23.6
21.5
19.0
18.2

19.2
16.8
14.4
13.0

4.4
4.7
4.7
5.3

6.1
5.4
5.4
5.2

10.5
10.1
10.0
10.5

2.2
2.2
1.7
1.4

1970 - I
II
III
IV

20.6
22.9
29.1
31.3

14.2
16.9
21.8
22.5

9.1
11.5
15.5
16.0

5.1
5.4
6.3
6.5

4.8
4. 6
5.2
6.7

9.9
9.9
11.5
13.2

1.5
1.5
2.1
2.2

1971 - I
II
III
IV

37.1
47.8
53.6
53.4

26.6
36.1
40.1
40.1

18.5
26.4
31.4
31.4

8.1
9.7
8.7
8.7

8.3
9.4
11.2
10.8

16.3
19.1
19.9
19.5

2.2
2.3
2.3
2.5

1972 - I
II
Ille

61.2
64.9
66.2

43.9
47.3
48.4

34.3
37.4
38.0

9.6
9.9
10.4

14.8
14.9
14.9

24.4
24.8
25.3

2.6
2.6
2.9

QUARTER

MULTIFAMILY

COMMERCIAL

. MULTI-AND
COMMERCIAL

FARM

tional Association of Mutual Savings Banks, Departments of Commerce and Agri-

vTc^;
farm mortgage debt by type of property, where not available, and Interpolation,

Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




"

TABLE 14: FNMA Weekly " A u c t i o n " Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD 2 (per cent)
ACCEPTED
1 -YEAR'1
1-YEAR 1
909066TOTAL
TOTAL
& OVER
MONTH & OVER
DAY
DAY
MONTH
OFFERED

July 10
24

134.6
123.9

92.1
113.0

92. 1
113.0

Aug.

7
21

106.2
114.6

81.7
87.2

Sept. 5
18

220.6
295.9

Oct.

2
16
30

Nov. 13
27
Dec. 11

--

--

--

7. 62
7 • 62

—--

-—
——

81.7
87.2

—

--

7.63
7. 62

--

--

151.2
148.1

151.2
148.1

--

--

7.63
7.65

352.8
271.2
1.86.4

j

——

211.5
224.9
162.7

211.5
224.9
162.7

--

7.69
7.72
7.72

-—
--

—
—
—

78.7
60.8

49.2
36.2

49.2
36.2

--

7.71
7,69

—

—

82.2

j

42.4

42.4

-—

—

7.67

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments.
Average secondary market yields after allowance for commitment fee and
required purchase and holdirlg of FNMA stock, assuming prepayment of
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 38 basis points fee paic^by investors
to servicers.




19
TABLE 15: Private Housing Starts and Permits
STARTS

DATE

1971

1972

• October
November
December

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

2,038
2,228
2,457

1,155
1,242
1,347

TOTAL

9

2,487
2,682
2,369
2,109
2,350
2,330

1,415
1,325
1,302
1,167
1,344
1,296

2,218
2,484
2,366

1,289
1,410
1,371

1,071
1,357
1,067
942
1,006
1,034
929
1,074
1,613

October

2,410

1,288

1,122

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

179.
,7
176.
.4
152.
.1

882
985
1,110

January
February
March
April
May
June
July r/
August r/
September p/

UNADJ USTED
TYP E OF FINANCING
FHA VA
OTHER

'

38.5
47.2
85.4

8.1
9.1
7.4

133.1
120.1
59.3

1,983
2.051
2,142

,9
150.
,6
153.
205.,8
213.,2
227. 9
226. 3
207, 5
230. 9
201. 8

37.4
27.8
37.7
29.1
32.4
31.9
26.2
30.3
28.2

7.5
8.0
10.5
8.5
9.4
9.6
9.4
9.91

106.0
117.8
155.7
172.9
186.1
184.8
171.9
188.0

2,204
2,056
2,007
1,991
1,955
2,121
2,108
2,237

|
!
,

162.6
179.5
%

f

25.4

8.91
8.5

2,265

213. 4

2,218

IMSIS
other differences in timing and coverage.




20
TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES
DATE
30-%ear

2

1

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 5

NEW
ISSUE
Aaa
UTILITY
4

1 SPREAD BETWEEN
! YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES 6

1970 - High
Low

9.29
8.40

8.60
8.30

-.10
-.74

9.43
7.72

.37
.70

1971 - High
Low

7.97
7.32

7.95
7,55

.28
. -.19

8.26
7.02

.52
-.36

1971 - Nov.
Dec.

7.62
7.59

7.75
7.70

.13
.11

7.38
7.28

.24
.31

7.49
7.46
7.45
7.50
7.53
7.54
7.54
7.55
7.56

7.60
7.60
7.55
7.60
"7.60
7.60
7.65
7.65
7.70

.11
. 14
.10
.10
.07
.06
. 11
.10
.14

7.21
7.34
7.24
7.45
7.38
7.32
7.38 .
7.37
7.40

.28
.12
.21
.05
.15
:22
.16

7.57
7.57

7.70
7.70

.13
.13

7.38
7.09

1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
August
September
October
November

1

2

3

4
5
6

.IS

.16
.19
.61

Neither mortgage nor bond yields include allowance for servicing costs which are
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and—beginning July 1961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages.
Based on FHA-field-office opinion on typical contract interest rates (rounded)
on conventional first mortgages prevailing in the market areas of insuring
offices.
See note for Table 1.
Yield spread equals conventional mortgage rate less FHA secondary market yield.
Yield spread equals FHA secondary market yield less new Aaa corporate bond
yield.




TABLE 17: Conventional Mortgage Terms

1

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

LOAN/
PRICE LOAN
RATIO AMT.
(PER ($000)
CENT)

CON- FEES &
LOAN/
TRACT CHARGES EFFEC- MATU- PR1CF.
(PER
RATE
TIVE
RITY RATIO
(PER
CENT) RATE (YEARS) (PER
CENT)
2
CENT)
3

LOAN
AMT.
($000)

7 .51
7 .60
7 .67
7 .68
7 .65
7 .62

0.90
0.84
0.97
0.97
0.87
0.93

7 .66
7 .74
7 .83
7 .84
7 .79
7 .77

26 .3
26 . 2
25 . 8
26 . 4
26 .7
26 .6

74.5
73.9
75.3
75.5
75.4
74.5

27.1
26.5
25.9
26.3
27.3
26.5

7 .50
7 .58
7 .63
7 .62
7.56
7 .51

0 .75
0 .76
0 .78
0 .79
0 .79
0 .78

7 .63
7 .71
7 .76
7 .75
7 .69
7 .64

24 . 2
24 .5
24 . 2
24 . 1
24 .6
24 .6

74.5
74.2
74.5
74.2
74.6
74.6

23.2
23.5
22.5
22.9
23.2
23.9

7,.62
7,.45
7..38
7..38
7.40
7.41
7. 43
7. 45
7.,43
7. 48

0.95
1.02
0.84
0.83
0.84
0.85
0.83
0.86
0.86
0.88

7,.78
7,. 6 1
7.52
7..51
7.53
7 . ,55
7. 56
7. 59
7. 57
7. 62

26 .5
27 .0
27,.2
27..2
27..2
2 7 . .2
27. 2
27. 5
27. 3
27.2

75.0
76.5
76.2
76.0
76.2
76.5
77.0
77.5
77.5
77.4

27.6
27.8
28.2
28.5
28.5
27.8
28.2
27.9
27.9
27.4

7 .45
7 .35
7 .31
7 .30
7,.33
7,.36
7..37
7. 39
7..42
7.,43

0 .82
0.
.79
0.
.77
0.
.78
0.,77
0.78
0. 83
0. 8 1
0. 83
0. 82

7 .58
7 .48
7 .44
7,.42
7..46
7..49
7 . .50
7. 52
7..55
7. 56

24 .7
25..4
25.. 1
25..2
2 5 . ,2
25. 5
25. 6
26.3
26. 2
25. 9

74.7
75T.8
75.6
75.3
75.4
76.1
76.2
76.5
76.5
75.9

24.1
24.8
24.4
24.9
24.6
25.2
25.2
25.4
24.8
24.7

1971
July
Aug.
Sept.
Oct.
Nov.
Dec.
1972
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.r/
Oct. j>/
1

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.

2

Fees and charges--expressed as a percentage of the principal mortgage amount--include
loan commissions, fees, discounts, and other charges which provide added income to the
lender and are paid by the borrower. They exclude any closing costs related solely to
transfer of property ownership.

3

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




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