Full text of H.16 Capital Market Developments : December 6, 1971

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DECONTROLLED 'AFTER SIX M O M S

D e c e m b e r 6, 1971

CAPITAL
MARKET
DEVELOPMENTS




INDEX
3-5

Developments in the Corporate and Municipal Bond Markets

6-7

Capital Market Yields

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r

Revised

• n.a.

Not available




3

T A B L E 1 : Y i e l d s , Volume and R e c e p t i o n
CORPORATE BOND MARKET
WEEK ENDING:

YIELDS
MOODY'S
SEASONED
NEW ISSUE '
Aaa

GROSS
OFFERINGS

VOLUME2
PER CENT
SOLD BY E N D
BONDS SCHEDULED
OF W E E K
W I T H I N 28 DAYS

1971 - N o v .

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

Dec.

3
10

7.18
n. a.

7.28
n. a.

213
550e

85
n.a.

MOODY'S
SEASONED
Aaa

74
*•

n.a.
n.a.

MUNICIPAL BOND MARKET
VOLUME2

YIELDS
W E E K ENDING:

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

BOND BUYER
S E A S O N E D 20
B O N D INDEX

GROSS
OFFERINGS

PER CENT*
SOLD BY E N D
OF W E E K

1971 - N o v .

5
12
19
26

4.75
4.90
4.90
5.15

499
5.19
5.25
5.36

383
696
863
185

66
06
69
74

Dec.

3
10

5.20
n.a.

5.44
n. a.

404
432*

86
n.a.

BONDS SCHEDULED
W I T H I N 28 DAYS
^

1,584
1,245
1,180
1,433
1,472
n.a.

1 Derived by a d j u s t i n g to a A a a basis, n e w issues of p u b l i c l y - o f f e r e d corporate bonds
with call protection, rated A , A a , or A a a by M o o d y ' s Investors Service (except serial
and c o n v e r t i b l e issues, offerings of natural gas pipeline 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 otherwise indicated.
Note:

See

footnotes to T a b l e 3




T A B L E 2: D e t a i l s on Inventories

i
|

DATE
OFFERED

, C O R P O R A T E BONDS IN SYNDICATE END OF LATEST W E E K
RATING AND
ORIGINAL
YIELD C A L L PROTECTION
ISSUER
COUPON

AMOUNT
(MIL. 4)

Gen. Tel
Hartford
Iowa P &
Orange &

50.0
30.0
15.0
12.0
25.0
75.0
50.0

12/2
12/1
11/29
11/29
11/18
11/15
11/19

DATE
OFFERED
| RELEXSED
11/10

11/30

G e n . T e l o£ S. E .
So. Cent*1 Bell Tel
Honeywell Fin

5
12
19
26

Dec.

3

a

N.C.

6.60
6.95

N.R.

7 3/8

Cincinnati G & E

60.0

DATE
- Nov.

6 3/4
7.00

A
Aa
Aa
Baa
Baa
Aaa

yrs
yrs
yrs
yrs
yrs
yrs
yrs

50%
40%
40%

60%
98%
90%

C O R P O R A T E BONDS RELEASED FROM SYNDICATE DURING LATEST W E E K
E S T I M A T E D PROORIGINAL INCREASE R A T I N G A N D
IN YIELD C A L L P R O T . P O R T I O N R E L E A S E D
ISSUER
COUPON
AMOUNT
YIELD

INVENTORIES

1971

8.00
8.00

7.63
7.55
7.58
7.90
7.90

7-5/8
7 5/8
7 5/8

Calif
Elec
L
Rock Util

[ E S T I M A T E D PRO1
PORTION SOLD

MUNICIPALS
I
IN SYNDICATE
BLUE LIST
|
218
892
360
901
453
979
280
993
845

148

7.29

»

+12

Aaa

5yrs

45%

1

CORPORATES
IN SYNDICATE
158
214
288
14}
59

- No call protection.

All figures in millions of dollars.
Digitized 1for FRASER
daily average of three days


Blue List is daily average for week ended Friday,except
ended Wednesday. All other figures are as of Friday.

for latest "week

~

T A B L E 3: High Grade Bond Y i e l d s

DATE

NEW
CORPORATE
Aaa1

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

1969 - H i g h
Low

8.85
6.90

(12/26)
(2/21)

7.84 (12/26)
6 . 5 5 (1/12)

6.97
5.96

(12/26)
(1/24)

6.90
4.82

(12/18)
(1/28)

1970 - H i g h
Low

9 . 3 0 (6/19)
7.68 (12/18)

8 . 6 0 (7/3)
7 . 4 8 (12/31)

7.55
6.17

(5/29)
(12/18)

7.12
5.33

(5/29)
(12/11)

1971 - H i g h
Low

8.23
6.76

7.71 (8/13)
7.06 (2/12)

6.51
5.69

(6/18)
(3/23)

6.23
4.97

(6/24)
(10/21)

(5/12)
(1/29)

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

7.18

7.28

5.96

5.44

1

N e w c o r p o r a t e issues, w i t h call p r o t e c t i o n , a d j u s t e d (as d e s c r i b e d in
footnote 1 of T a b l e 1) to a A a a b a s i s .
2
W e e k l y a v e r a g e of daily figures.
A v e r a g e term of b o n d s included is
2 2 - 2 4 years.
3
W e e k l y a v e r a g e of daily figures.
4
T h u r s d a y figures.
T h e a v e r a g e rating of the 20 b o n d s used in this index
\ ' falls m i d w a y b e t w e e n the four top groups as c l a s s i f i e d b y M o o d y ' s Investors Service.
N o t e — H i g h s and lows are for i n d i v i d u a l series and m a y b e on d i f f e r e n t dates
for d i f f e r e n t series.
j




..

V

T A B L E 4:

Long-term C o r p o r a t e and S t a t e and L o c a l G o v e r n m e n t
S e c u r i t y 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 )

t

GROSS PROCEEDS
CORPORATE

PERIOD

1

STATE A N D LOCAL

1971

1970

1969

January
February
March

3,115
3,000
6,075

2,636
1,802
3,539

2,075
2,045
2,098

April
May
J u n e >-

4,007
3,271
4,375

3,170
3,909
3,389

2,748
2,076
2,530

July
August
September

4,147
2,532
3,768

2,768
2,274
2,518

- 2,478
1,427
2,427

October
November
December

3,010e

2,777
4,182
3,980

12,190
11,654
10,447

23,844
34,291

1st2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st h a l f
Three quarters
Year

2

1971

1970

1969

3,706
1,839
2,156

1,340
1,214
1,555

1,262
987
538

;
j

1,920
2,140
J2.035

1,647
996
1,085

1,801

!

1,110

1,964
1,892
2,061

1,348
1,359
1,758

1,097
808
559

1,933
2,375
2,532

l,700e

1,924
1,748
2,190

1,280
886
816

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

18,445
27,005
38,944

13,572
19,904
26,744

12,796
18,713

7,837
12,302
18,164

6,435 j
8,899 f
11,881|

1
j
|
j

.

737

1

-

j
j
1

1
2
3

S e c u r i t i e s and E x c h a n g e C o m m i s s i o n e s t i m a t e s of g r o s s p r o c e e d s .
I n v e s t m e n t B a n k e r s A s s o c i a t i o n of A m e r i c a e s t i m a t e s of p r i n c i p a l a m o u n t s .
T o t a l gross p r o c e e d s e x c l u d i n g o f f e r i n g s of sales and c o n s u m e r finance
companies.




T A B L E 5: New C o r p o r a t e Security I s s u e s , T y p e of I s s u e and I s s u e r
(In m i l l i o n s of d o l l a r s )

QUARTER
OR
MONTH

TOTAL

PUBLICLY
OFFERED

GROSS P R O C E E D S B Y
T Y P E OF I S S U E
COMMON
AND
PRIVATELY
PFD.
ISSUES INCLUDED
PLACED
STOCK
FOREIGN
CONVERTIBLE
83

1970 - I I I
IV

8,560
11,938

5,937
7,827

914
1,421

1,659
2,690

1971 - I
II
III

12,190
10,447

8,369
6,546
4,725

1,516
1,758
1,641

3,384
4,079

1970 - O c t .
Nov.
Dec.

3,777
. 4,181
3,979

2,390
3,001
2,436

304
283
834

1,083
898
709

159

1971 - J a n .
Feb.
Mar.

3,115
3,000
6,075

2,033

594
275
647

489
524
1,293

43
3
38

Apr.
May
June

4,042
3,271
4,375

2,116

507
491
760

1,419
633
1,332

116

July
Aug.
Sept.

4,147
2,532
3,768

1,331
1,428
1,966

619
416

606

2,196
687
1,196

O c t . e/

3,010

1,950

500

560

1

11,688

2,201
4,135
2,148

2,282

2,306

GROSS PROCEEDS BY
T Y P E OF I S S U E R

MFG.

PUBLIC
UTILITY

S e c u r i t i e s and E x c h a n g e C o m m i s s i o n .




CATIONS

868

OTHER
ISSUERS1
2,663
4,020

226

287
737

2,314
3,169

2,714
3,406

84
215
114

724
1,351
652

3,794
3,130

2,202

3,197
2,910
2,651

56

388
184

1,006

1,101

1,107
1,056

1,350
955

282

1,300
1,033
1,687

99

716

168

661

676
1.069
1,452

391
683
532

1.332
587
1,675

273
405

11

1 6 5

1,346

1,606
896
2,263
371
693

3,594
4,753
3.331

557

2,417

384
255
712

1,135
588

1,206

1,267
588
1,055

218

1,367
1,489
1,897

72
34

199

1,210

359

293

732
849
1.070

1,622

8

582
474
1,146

282

850
1,271

210

500

800

410

1,300

47
52

160

O t h e r issuers a r e e x t r a c t i v e , r a i l r o a d and other t r a n s p o r t a t i o n , real e s t a t e
and finance, and c o m m e r c i a l and o t h e r .
Source:
able.

COMMUNI-

Q u a r t e r l y s u p p l e m e n t s are a v a i l -

T A B L E 6:

L a r g e Long-term P u b l i c Security I s s u e s for New C a p i t a l
(Other t h a n U.S. T r e a s u r y ) 1
Nov.

ISSUER

TYPE2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
R A T E OR
NET INTEREST C O S T

29, thru D e c . 3,
OFFERING
YIELD

MOODY'S
RATING

Corporate
M i n n e a p o l i s Gas C o
I o w a Pwr & L i g h t C o i
H o u s t o n L i g h t i n g & Pwr C o
G e n 1 1 T e l of C a l i f
D e l m a r v a Pwr & L i g h t C o
H a r t f o r d E l e c L i g h t Co
A l l e g h e n y Pwr S y s t e m Inc
C l e v e l a n d Elec I l l u m i n a t i n g C o




S.F. debs
1st m t g
1st m t g
1st m t g
1st m t g
1st,mtg
Com stk
Pref

1996
2001
2001
2001
2001
2001

12.0
15.0
50.0
50.0
35.0
30.0
43.9
50.0

1

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

1971

T A B L E 6:

L a r g e Long-term P u b l i c Security I s s u e s for New C a p i t a l ( c o n t i n u e d )
(Other than U.S. T r e a s u r y ) 1

AMOUNT
(MILLIONS
ISSUER

TYPE 2

OF
DOLLARS)

MATURITY

N o v . 29, t h r o u g h D e c . 3 .
COUPON
|
RATE OR
j OFFER MOODY'S
NET INTER- !
i;;c
RATING
EST C O S T
j YIELD

S t a t e and L o c a l
Connecticut, State of
Oneida Co., N.Y.
Oneida Co., N.Y.
U n i v e r s i t y of T e x a s
Suffolk Co., N.Y.
P e n n a , S t a t e of
Benna, State of
Chicago, 111.
Milwaukee, Wise.

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

1972-1981
1972-1996
1972-2001
1972-2002
1972-1995
1974-2001
1974-2001
1976-1986
1972-1991

-—
-—-

5.47
5.22
5.31
5.31
——

4.63

2.70-4.25
2.75-5.20
2.80-5.25
2.75-5.70
3.90-5.50
3.40-5.65
3.40-5.76
3.90-4.00
2.85-5.70

Aaa
——
——

A-l
A
Aa
A-l
A-l
Aaa

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;
State and local security offerings of $10 m i l l i o n and over.
In case of S t a t e and local government s e c u r i t i e s , G.O. d e n o t e s general o b l i g a t i o n ;
K e v . - U t . , revenue o b l i g a t i o n s secured only by income from p u b l i c u t i l i t i e s ;
R e v . - Q . - U t . , revenue bonds secured only by income from q u a s i - u t i l i t i e s ; R e v . - S . T . ,
r e v e n u e bonds secured by r e v e n u e from specific taxes only; R e v . - R e n t . , revenue
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 g o v e r n m e n t 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 .




1971

10
T A B L E 7:

F o r t h c o m i n g L a r g e Long-term P u b l i c S e c u r i t y O f f e r i n g s for New C a p i t a l
(Other than U.S. T r e a s u r y ) 1
,e0nlinUed>

TYPE

ISSUER

A s o f D e c . 3 . 1971

AMOUNT
(MILLIONS
OF
DOLLARS)

A P P R O X I M A T E DATE
OF O F F E R I N G

S t a t e and L o c a l
G r e a t e r A n c h o r a g e A r e a Borough,
Alaska
New Jersey
Hennepin Co., Minn.
Phoenix, Ariz.
N a s s a u C o . , N. Y .
A l b a n y C o . , N. Y .
A n n A r b o r Pub S c h . , M i c h .
West Virginia
Warwick, R.I.
New Y o r k City
C h i c a g o Pub Budg Co
O k l a . , C a p i t a l Imp A u t h
O r e g o n , S t a t e of
O r l e a n s Parish S c h Bd
HAA
D a l l a s , Texas
Richmond, Va.
N Y C H o u s i n g D e v e l Corp
V e r m o n t M u n i Bond B a n k
O h i o , S t a t e of
L'anse Creuse Pub C/D, Mich.
P h i l a d e l p h i a S c h D i s t . Pa

!

*

Included

G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev.
G.O.
G.O.
G.O.
Bonds
G.O. & Rev.
G.O.
Rev.
G.O.
G.O.
G.O.
G.O.

10.0
75.0
10.7
10.0
48.9
70.0
12.9
40.0
11.3
376.8
55.0
17.5
68.0
12.0
253.0
11.0
35.0
100.0

p.o
60.0
22.6
40.5

.
/

December
December
December
December
December
December
December
December
December
December
December
December
December
December
December
December
December
December
December
January
January
March

6
7
7
7
8
8
9
9
14
14
14
14
14
14
15
15
15

7
17
7

.

in table for first time.

I n c l u d e s corporate and other issues of 515 m i l l i o n and over; State and
G o v e r n m e n t issues of $10 m i l l i o n and over.

local

I n c l u d e s foreign government 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 .




11
T A B L E 7:

F o r t h c o m i n g L a r g e Long-term P u b l i c S e c u r i t y O f f e r i n g s for New C a p i t a l
(Other t h a n U.S. T r e a s u r y ) 1
(continued)

ISSUER

TYPE

AMOUNT
(MILLIONS
OF .
DOLLARS)

As of D e c e m b e r 3 , 1971
APPROXIMATE DATE
OF O F F E R I N G

Corporates
E q u i t y F u n d i n g C o r p of A m e r i c a
Investors D i v Sves Inc
M i c h i g a n Wisconsin Pipeline Co
M o n y H t g e Inv
Dominion Bankshares
Duke Pwr Go
Duke Pwr Co
Burlington Northern Inc.
Burlington Northern Inc.
New York Telephone Co
Penna Elec Co
Hotel Investors
Atlantic Bancorp
Pacific LightingJService Co.
G e n ' l T e l e Co of I n d i a n a
Philadelphia Elec Co
Heitman M t g e Investors
C o n n e c t i c u t L i g h t & P o w e r Co
C o n n e c t i c u t L i g h t & P o w e r Co
A l a b a m a P o w e r Co .
Alison Mtge & Inv. Trust
Alabama Power Co
First National State Bancorp

Debs
Debs
Bonds
Debs
Debs
Bonds
Notes
Eq tr
Eq tr
Bonds
Bonds
Debs
Debs
Debs
Bonds
1st m t g
Debs
Bonds
1st m t g
1st m t g
Debs
Pref stk
Notes

38.5
35.0
40.0
50.0
15.0
40.0
60.0
16.0
34.0
200.0 .
30.0
20.0
20.0
26.0
18.0
80.0
30.0
30.0
30.0
25.5
25.0
- 38.0
-25.0 /

Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.

6
6
6
6
7
7
7
8
8
8
8
9
9
9
13
13
13
14
14
15
15
15
15

Long Island Lighting Co
B e l l T e l e C o of Pa
Texas Elect SVC
Oklahoma G & E
Northern Natural Gas Co
P u b SVC Co of I n d .
Kentucky Power Co
C a r o l i n a P o w e r & L i g h t Co
Lone Star Gas Co
L o u i s i a n a P o w e r & L i g h t Co

1st m t g
Bonds
Bonds
Bonds
Debs
Bonds
Bonds
Stocks
Debs
Bonds
Bonds
Bonds
Bonds

50.0
125.0
30.0
30.0
60.0
50.0
50.0
45.0
30.0
25.0
40 0
100.0
20.0

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

16
5
10
11
11
12
17
18
18
19
20
25
27

Tampa Elect
C & P T e l e C o of M d .
G e n ' l T e l e C o of 1 1 1 .




v

12

Table 8

STOCK PRICES AND VOLUME
TRADING VOLUME d

STOCK PRICES 1
NYSE INDEX 3 -

D J . INDUSTRIALS

AMEX 4

1969 - H i g h
Low

50.32 (5/14)
49.31 (7/29)

968.85
769.93

(5/14) 32.91
(12/17) 2 5 . 0 2

(1/13)
(7/29)

16.5
8.6

(3/29)
(8/29)

8.0 (1/31)
3.6 (11/21)

1970 - H i g h
Low

52.36
37.69

(1/5)
(5/26)

8 4 2 . 0 0 (12/2ST) 2 7 . 0 2
631.16 (5/26) 19.36

(1/8)
(5/27)

18.5
7.8

(12/4)
(8/14)

7.1 (1/2)
1.8 ( 8 / 1 4 )

1971 - High

57.76
48.73

(4/28)
(1/4)

950.82 (4/28) 26.68
8 3 0 . 5 7 (1/4)
22.72

(4/28)
(1/4)

22.1 (2/#)

6.7 (2/12)
2.7 (8/13)

Low

54.66

Oct.

54.94
^ 15.... 5 4 . 0 6
52.82
22
52.07
29
Nov.

5

12
19

26

Dec.

893.98
893.91
874.85
852.37
t

25.54

11.0

(8/13)

11.4
14.8
12.3
13.9

25.71
25.37
24.95

3.1
4.1
3.8
3.5

839.00

24.61

12.3

3.1

52.16
50.85

840.39
812.94

24.54
24.10

13.1
12.4

3.3

50.47
50.57

810.67
816.59

23.78
23.63

12.2
12.7

53.51

859.59

24.60

18.6

2.8
.
\

3.0
3.4
4.5

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:
From
Week
January 3, 1 % 9
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
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 P E R I O D

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS1 I BANKS 2 I TOTAL

CUSTOMERS'
NET DEBIT
BALANCES

NET CREDIT
C U S T O M E R S ' N E T E X T E N D E D BY
FREE C R E D I T
BROKERS A N D
DEALERS 3
BALANCES

Outstanding;
1970

Oct.
Nov.
Dec.

1971 - J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.

6,280

4,010
4,010
4,030

2,270
2,320
2,303

6,330
6,360

(4)
(4)
(4)

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)
(4)
• (4)
(4)
(4)
(4)
(4)
(4)
(4)

2,163
2,197

2,286
2,452
2,743
2,798

2,660z
2,550
2,440

2,210
2,200
2,100.
2,160

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

C h a n g e in
Outstanding
1970

1971

Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.

90

20
-30
90
210
230
90

100
70

-60
50
10

30
50
30

-73
34
89

-30
30
30

-60
120
240
210
90
150
100
70
80

291
291
55
-138

-20
50
30

60
80

10

20

-20

-110

110
230
-10
100
60

M a r g i n d e b t , as reported by the N e w Y o r k S t o c k E x c h a n g e . A l t h o u g h m a r g i n debt
u n t i l M a r c h 1968 included loans secured by U . S . g o v e r n m e n t s , the amount of such
loans included is thought to h a v e been small.
" B a n k loans to others than b r o k e r s and d e a l e r s for. purchasing 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 c r e dit 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 .
N O T E : W i t h the exception of b a n k loan data, 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 regulated s e c u r i t i e s ; b a n k
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
Seizes3 ^ s continued.
C h a n g e s in s e r i e s .




T A B L E 10: S a v i n g s F l o w s a t Noobank D e p o s i t a r y I n t e r m e d i a r i e s
($ m i l l i o n s )

DATE

MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
NEW
ANNUAL
MONEY2
GROWTH
NET
1
RATE
FLOW

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
' ANNUAL
M
ONEY2
NET
GROWTH
FLOW
RATE 1

TOTAL
DEPOSITS
ANNUAL
NET'
GROWTH
RATE 1
FLOW

;

NET
NEW
MONEY

2

Not Seasonably Adjusted
7.0
4.0
6.7

4,203
2,549
4,466'

1968
1969
1970

1970 - S e p t e m b e r
October
November

575
276
497

1971 - September
O c t o b e r j>/
N o v e m b e r e/

793
382
600

__

—1 —
.

1,143
-763
936

7,432
4,200
11,173

-8
138
388

1,827
1,130
1,103

105
224
n. a.

2,671
1,592
1,400

——

i

6.0
3.2
8.2

-. —
--

' •

2,738
-1,003
5,295

11,635
6,749
15,639

575
1,050
1,044

2,402
1,406
1,600

1,091
1,492
n. a.

3,464
1,974
2,000

6.3
3.4
7.7

„— •
—
—
' --

3,881
-1,766
6,231

567
1,188
1,432
1,196
1,716
n. a.

Seasonally Adjusted
1971 - M a y
June
July
August
September
October £/
N o v e m b e r e/
1
2
3

7/5
m.8

SGfr*^
425
643
543
643

12,7
12.9
8.8
6.6
9.9
8.3
9.8

——
—
—
—
—
——

1,996
2,152
2,598
1,285
2,160
1,881
1,427

15.1
16.1
19.2
9.3
15.6
13.4
10.1

—
—
----

2,791
2,970
3,164
1,710
2,803
2,424
2,070

14.3
15.1
15.9
8.4
13.8
11.8
10.0

A n n u a l growth rate for m o n t h l y data is the a n n u a l i z e d m o n t h l y p e r c e n t a g e i n c r e a s e in d e p o s i t s .
N e t N e w M o n e y is new deposits net of both w i t h d r a w a l s and i n t e r e s t .
Data for S&Ls are for
insured a s s o c i a t i o n s only, w h i c h represent 96% of industry total resources.
R e g u l a r d e p o s i t s at m u t u a l savings banks exclude items such as C h r i s t m a s club and certain
escrow a c c o u n t s , w h i c h represent a very small part of total deposits.
SOURCE:
N a t i o n a l A s s o c i a t i o n of M u t u a l Savings B a n k s and Federal H o m e L o a n B a n k B o a r d .




--

—
—

r-

T A B L E 11: Mortgage Commitments a t S e l e c t e d T h r i f t I n s t i t u t i o n s

DATE

TOTAL

OUTSTANDING COMMITMENTS
ALL
MUTUAL
SAVINGS
SAVINGS &
BANKS
LOAN
(N.Y. S T A T E )
ASSOCIATIONS

TOTAL

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. S T A T E )

(Billions of D o l l a r s , S e asonally A d j u s t e d ) — ^
Sept.
Oct.
Nov.
Dec.

8.9
9.3
9.6
10.1

7.1
7.5
7.8
8.1

1.8
1.8
1.8
2.0

.25
.30
.35
.51

'71 - J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.

10.4
11.2
12.6
13.8
15.3
16.1
16.3
16.4
16.5

8.3
8.9
10.1
11.1
12.2
13.0
13.2
13.3
13.3

2.1
2.3
2.5
2.8
3.1
3.1
3.1
3.1
3'%

.25
.80
1.36
1.30
1.56
.77
.24
.07
.12

l

B a s e d on data

.20
.60
1.16
1.01
1,21
.72
.28 E/
.10
-.01

from Federal H o m e L o a n B a n k B o a r d and S a v i n g s B a n k s A s s o c i a t i o n s of

N e w Y o r k State.
D a t a for savings banks and S & L ' s i n c l u d e
S & L c o m m i t m e n t s i n c u l d e y l o a n s in
residential commitments.
are d e r i v e d d i r e c t l y from u n r o u n d e d o u t s t a n d i n g s levels as
s e a s o n a l a d j u s t m e n t by F e d e r a l R e s e r v e .
S u b t o t a l s m a y not
of r o u n d i n g .




.36
.37
.34
.28

a m i n o r amount of n o n process.
Net changes
r e p o r t e d and a f t e r
add to totals b e c a u s e

-.11
-.07
.01
.23
.05
.20
.20
.29
.34
.05
.02
.
.03 ± !
.13

16

T A B L E 12:

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

N e t C h a n g e in Mortgage H o l d i n g s

1

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
SAVINGS
COMMERCIAL
LOAN
BANKS
BANKS
ASSOC.

LIFE
INSURANCE

FNMA-GNMA

COMPANIES

Not Seasonally Adjusted
1967
1968
1969
1970 £ /
1970

- Aug.
Sept.
Oct.

1 9 7 1 - Aug.
Sept.
Oct.

2,907
2,459
2,052
2,318

1,797
2,508
4,375
4,909

20,016
23,781
24,189
21,822

18,219
21,273
19,814
16,913

4,639
6,677
5,404
2,462

3,153
2,787
2,682
1,845

7,520
9,350
9,676
10,288

2,072
2,318
2,207

1,673
1,956
1,840

300
500
300

182
216
164

1,114
1,123
1,188

77r
117
188

399
362
367

4,456r
4,094
n.a.

3,930
3,586
n.a.

1,000
1,100
900

415
272
414

2,391
2,122
1,992

124
92

526r
508
456

Seasonally Adlusted
1970

- Aug.
Sept.
Oct.
Nov.
Dec.
1 9 7 1 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
M o n t n i y

1,511
1,832
1,808
1,820
*2,504
1,893
2,184
2*996
2,018
3,273
3,972
3,898
3,770
3,486
n.a.

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.
data

ior

tunmiciciai

175
245
138
176
250
175
217
380
283
313
413
373
410
302
389

268
329
,
295
224
312
383
445
688
653
840
1,197
969
972
922
896
uawivo

WW

...

983
1,104
1,175
1,289
1,710
1,311
1,425
1,774
2,044
2,095
2,339
2,484
2,258
2,130
1,977

8 5
r
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
361
534
509
407

-

to C a l l R e p o r t d a t a on real e s t a t e 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
d e r i v e d from m o r t g a g e debt o u t s t a n d i n g as reported s e p a r a t e l y by N a t i o n a l A s s n .
of M u t u a l S a v i n g s B a n k s , Federal H o m e L o a n B a n k B o a r d , I n s t i t u t e of L i f e Insurance
and, through A u g u s t 1968, the F e d e r a l 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
s a v i n g s b a n k s 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 d i f f e r somewhat from those
derived from r e g u l a r q u a r t e r l y series b e c a u s e of m i n o r c o n c e p t u a l d i f f e r e n c e s for
w h i c h a d j u s t m e n t s are not m a d e in the m o n t h l y series.
A l t o g e t h e r , these grouos
a c c o u n t e d for 8 4 per cent of the net i n c r e a s e estimated for all h o l d e r s in 1 9 7 0 .




17

T A B L E 13: Net I n c r e a s e s in Mortgage Debt O u t s t a n d i n g

1

B i l l i o n s of dollars, S A A R QUARTER
1966 - II
IV
1967 - I
II
III
IV
1968 - I

TOTAL

RESIDENTIAL3

1- to 4 FAMILY

18.6
15.1

10.9
9.1

8.3
7.0

15.9
20.7
26.6*
27.3

10.3
13.9
19.2
19.8
19.0
18.2

1

MULTIFAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

2.6
2.1 -

5.5
4.1

8.1
6.2

2.2

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

1.8

27.7
26.2
26.0
29.6

15.8
15.0
14.1
16.4

V l
3.2
3.4
3.8

6.4
5.9
6.5
7.5

9.6
9.0
10.1
111 3

2.3
2.2

17.7
20.2

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
10.1
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

36.3
47.6

25.9
36.4

17.7
26.2

16.3
19.1

2.2
2.3

II
III
IV
1969 - I

1971 - Ip
IIP

1

2
3

'

^

8.2
10.2

8.1
8.9

^

1.8
1.8

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 Loan 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 b y 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 interpolations,
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 somewhat 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
a g g r e g a t i v e type of seasonal 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 includes n o n f a r m o n l y and is sum of 1-to 4 - f a m i l y
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 .




T A B L E 14:

WEEK
ENDED

FNMA Weekly " A u c t i o n " R e s u l t s

C O M M I T M E N T S IN $ M I L L I O N S
ACCEPTED
1-YEARll
6TOTAL
TOTAL
& OVER
MONTH
OFFERED
mo!/

IMPLICIT YIELD2(per cent)
3-4
months

1/

1971 - J u l y

26

686.2

183.4

183.4

8.07

Aug.

25

634.6

153.5

153.5

7.97

7

445.2
437.5

188.6

188.6

7.88

193.0

193.0

7.86

365.1
219.8

194.8
103.6

194.8
103.6

7.85
7.83

126.0

. 56.4

Sept.

20
4

Oct.

18
Nov.

1

15

145.3

56.4

102.0 102.0

6MONTH

1-YEAR
& OVER

1

7.77
7.70

NoteU n d e r the FNMA a u c t i o n s y s t e m , a p p r o v e d 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 p u r c h a s e c o m m i t m e n t s .

For " p r o p o s e d c o n s t r u c t i o n " of n e w h o m e s o n l y .
A v e r a g e secondary m a r k e t yield a f t e r 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 p r e p a y m e n t of
15 y e a r s 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 p o i n t s fee paid by i n v e s t o r s
to s e r v i c e r s .
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 f r o m a 3 to a 4 m o n t h b a s i s b e g i n n i n g
O c t o b e r 18, 1971.




19
T A B L E 15:

P r i v a t e Housing S t a r t s and P e r m i t s
STARTS

DATE

SEASONALLY ADJUSTED
ANNUAL RATE

TOTAL

UNADJUSTED
TYPE OF FINANCING
FHA
VA
OTHER

ANNUAL
RATE) 2

T O T A L 1 - F A M I L Y 2 OR M O R E

1970 - O c t .
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

5.8
5.5
5.7

"
1971 - J a n .
Feb.
Mar.
Apr.
May
June
July
A u g . r/
S e p t . 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

32.2
27.3
33.4
44.6
40.7
46.1
42.9
45.8
48.3

4.6
4.7
6.9
8.5
8.4
9.3
9.2
9.4
8.7

1

2

BUILDING
PERMITS
(SEASONALLY
ADJUSTED

167.9
201.1
198.5
193.8
194.3
204.5
169.5
182.0

8.1

94.7
87.2
52.5

z

72.8
68.4
127.6
148.0
149.4
137.8
142.2
149.3
112.5

1,523
1,487
1,768
1,635
1,563
1,627
1,638
1,927
1,849
2,052

2,006
1,900
2,215

T o t a l starts are C e n s u s estimates i n c l u d i n g fann for both p e r m i t - i s s u i n g and
n o n - i s s u i n g a r e a s . A d w e l l i n g unit is s t a r t e d > h e n excavation begins; all units
in an apartment structure are considered started at that time.
FHA and VA
starts are units started under c o m m i t m e n t s by theise agencies to i n s u r e or guara n t e e the m o r t g a g e s . A s reported by FHA and V A , a unit is started w h e n a field
office receives the first c o m p l i a n c e i n s p e c t i o n report, w h i c h is m a d e b e f o r e
footings are poured in some cases but n o r m a l l y after the foundations h a v e been
c o m p l e t e d . O t h e r starts are derived as a r e s i d u a l , although total and FHA and
VA starts are not strictly c o m p a r a b l e in concept or timing; other starts inc l u d e both / units financed b y conventional m o r t g a g e s and units w i t h o u t m o r t g a g e s .
B u i l d i n g permits before J a n u a r y 1963 are C e n s u s estimates for about 1 0 , 0 0 0 a r e a s
identified as having a local b u i l d i n g permit system in 1959.
Estimates beginning
J a n u a r y 1963 are for a p p r o x i m a t e l y 12,000 and b e g i n n i n g J a n u a r y 1967 1 3 , 0 0 0 , or
all k n o w n p e r m i t - i s s u i n g p l a c e s .
U n l i k e starts, seasonally adjusted b u i l d i n g p e r m i t s reflect direct adjustment for d i f f e r e n c e s in the n u m b e r of w o r k i n g d a y s p e r
m o n t h , as w e l l as other d i f f e r e n c e s in timing and c o v e r a g e .




20

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES
30-year

CONVENTIONAL
MORTGAGES
3

8.62

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 5

1

NEW
Aaa CORPORATE
BONDS
4

-.13
-.40

8.75
6.91

8.60

-.10

8.30

-.74

9.11
7.80

.28

8.01

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES 6

1.08

7.99

8.35
7.55

9.29
8.40
7.97
7.32

7.95
7.55

-.19

7.24

7.75
7.89

7.65
7.70

-.10

8.01

-.19

7.90

July
Aug.
Sept.

7.97
7.92
7.84

7.85
7.85

-.17
-.07

.01

7.96
7.65
7.44

.27
.40

Oct.

7.75

7.80

.05

7.29

.46

1969 - H i g h
Low
1970 - H i g h

Low
1971 - H i g h

Low
1971 - M a y
June

7.80

-.13
.99

.01
.40
-. 36

-.26

-.01

.01

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. 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 b y 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 .
Yields computed by FHA, assuming prepayment period
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 ( r o u n d e d ) 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 a r e a s o f insuring
office cities.
S e e n o t e for T a b l e 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 r a t e 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 F H A s e c o n d a r y m a r k e t y i e l d less n e w A a a c o r p o r a t e bond:
yield.




21
T A B L E 17: Conventional Mortgage Terms

-

DATE

NEW HOMES
CONFEES &
T R A C T CHARGES EFFEC- MATURITY
(PER
RATE
(YEARS)
TIVE
(PER
CENT) RATE
CENT)
2
3

LOAN/
PRICE LOAN
RATIO A M T .
(PER ($000)
CENT)

1

EXISTING HOMES
FEES &
CONLOAN/
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)

1970
Oct.
Nov.
Dec1.

25.1
25.3
25.8

72 .4
72,.1
73..8

24.8 8 . 2 0
25.2 8.18
25.8 8 . 1 2

0.88
0.85
0.85

8 .35
8 .32
8 .26

22.8
22.7
23.3

71.5
71.5
71.9

20.5
21.1
21.7

8.18
7.91
7.66
7.49
7.477.50
7.66
7.74

25.8
26.2
25.9
26.3
26.1
26.3
26.3
26.2

73..3
73. 9
73.,7
73. 6
74.0
73. 7
74. 5
73. 9

26.4
26.2
26.0
26.2
26.7
27.2
27.1
26.5

25.8
26.5

75.,3
75. 6

8..08
7..80
7..60
7..47
7..45
7. 5 0
7. 63
7.71
7. 76

23.5
24.0
24.1
24.2
24.0
24.3
24.2
24.5
24.2

72.5
73.1
73.5
73.6
73.2
73.9
74.5
74.2
74.5

22.0
22.5
23.0
23.1
23.3
28.3
23.2
23.5

7.83
7.83

0.82
0.79
0.77
0.75
0. 71
0. 74
0.75
0.76
0.78
0.78

7..75

24.2

74.6

8 .33
8 .26
8,.20

1.05
0.99
1.07

8.51
8.43
8.38

Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.

8,.03
7..74
7..52
7..37
7.,36
7..38
7. 51
7. 60

0.92
1.00
0.83
0.73
0.71
0.74
0.90
0.84

Sept.
Oct.

7. 67
7. 67

0.97
0.96

1971

1

2

7.94
7.67
7.47
7.34
7.33
7.38
7.50
7.58
2 5 . 9 7.63
26.3 7.62

Compiled by Federal H o m e L o a n B a n k 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 m a j o r 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-FPIC 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 b y the borrower. They exclude any closing costs related solely to
transfer of property ownership.

3

22.5
23.0

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