Full text of H.16 Capital Market Developments : February 12, 1973

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DECONTROLLED AFTER SIX MONTHS

KEEuishl
L.5.8 Confidential (F.R.)

FEu
I ZD.'.;-v--.
cr

February 12, 1973

«... v ii r, AtGC

CAPITAL
MARKET
DEVELOPMENTS

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




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 Bond 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
S t o c k Market
Mortgage Market

SYMBOLS:

e

Estimate

p

Preliminary

r
n.a.

Revised
Not a v a i l a b l e

C




>

TABLE 1: Yields, Volume and Reception
»
YIELDS
MOODY'S
NEW ISSUE
Aaa
SEASONED
1
UTILITY
Aaa

WEEK ENDING:

1973 - Jan.

5
12
19
26

Feb.

2
9
16

7.29
7.45
7.40

7.11
7.12
7.15
7.18

34
373
248
176

7.36
7.46

7.20
7.22

179
245
250e

—

YIELDS
MOODY'S
BOND BUYER
SEASONED 20
NEW ISSUE
Aaa
BOND INDEX

WEEK ENDING:

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
100
80
94
81
99
99

MUNICIPAL BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
OF WEEK
OFFERINGS

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

BONDS SCHEDULED
WITHIN 28 DAYS

1973 - Jan.

5
12
19
26

4.95
4.90
4.85
4.90

5.08
5.03
5.00
5.08

52
467
467
364

55
80
75
54

96%_. .
942
802
929 i

Feb.

2

5.00
5.05

5.16
5.16

451
493
288e

83
83

575
586

9
16

:

1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds
with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial
and convertible issues, offerings of natural gas pipeline and foreign companies, and
bonds guaranteed by the Federal Government.)
2 Millions of dollars unless otherwise indicated.
Note:

See footnotes to Table 3




TABLE 2: Details on Inventories

DATE
OFFERED

AMOUNT
(MIL. $ )

•

' X'v

12.0

2/7

'

ISSUER

O t t e r T a i l JPwr

... •

COUPON
7 5/8

>„

RATING AND
ORIGINAL
YIELD C A L L PROTECTION.

E S T I M A T E D "PROPORTION SOLD •
90%

5 yrs

7.60

".fx
VX

DATE
O F F E R E D A RELEXSED
1/30

2/8

CORPORATE BONDS RELEASED FROM SYNDICATE DURING L A T E S T W E E K
O R I G I N A L INCREASE RATING A N D
ISSUER
IN Y I E L D CALL PROT.
COUPON
YIELD

AMOUNT

Feb.

Power & Light

INVENTORIES' 1
MUNICIPALS :
BLUE LIST
|
IN SYNDICATE -

DATE
1973 - J a n .

Texas

50.0

12
19
26

805
805
821

2
9

828
780

193
356

7.50

<

Aaa

+8

7.37

•

5 yrs

• CORPORATES
•• IN SYNDICATE

:

37 '
16 v<• -

^

< • :> '

N.C. - No call p r o t e c t i o n ^
1
A l l figures in m i n i o n s of dollars.
B1 ue tl*i;st is daily av&tagc/for v.-eck
Friday, cxcept
which is daily average of three Jiays endyd^Jcdnesday. All'other^ figures a r el as of Friday.




40%

for

latest v.cek

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

"NEW
CORPORATE
Aaa1

DATE

MOODY'S SEASONED
CORPORATE
Aaa2

U.S. G O V E R N M E N T
2O7YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

1970 - H i g h
Low

9.43
7.72

(6/19)
(12/11)

8 . 6 0 (7/3)
7.48 (12/21)

7.55
6.17

(5/29)
(12/18)

7.12
5.33

(5/2g)
(IZm)

1971 - H i g h
Low

8.26
7.02

(7/30)
(2/5)

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

6.51
5.69

(6/18)
(3/23)

6.23
4.97

(6/23)
(10/21)

1972 - H i g h
Low

7.60
6.99

(4/21)
(11/24)

7.36 (4/2&)
7.05 (12/8)

6.19
5.24

(4/14)
(11/47)

5.54
4.96

(4/13)
(10/21)

6.42
6.85
6.86
6.87

1973 - J a n .

Feb.

1

——

5
12
19
26

7.29
7.45
7.40

7.11
7.12
7.15
7.18

2
9

7.36
7.46

7.20
7.22

,

,

6.88
6.89

5.08
5.03
5.00
5."08
5.16
5.16

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
f o o t n o t e 1 of T a b l e 1) to a A a a b a s i s .
W e e k l y a v e r a g e of daily figures. A v e r a g e t e r m of b o n d s included is
22-24 years.
W e e k l y a v e r a g e of daily figures.

2
3
4
1

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 6 - - H i g h s and lows a r e for individual 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.




TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
STATE; AND LOCAL 2
1972

1971

1970

j

1972

January
February
March ,

3 ,205
3 ,369
3 ,229

3 ,115
3 ,000
6 ,075

2 ,636
1 ,802
3 ,539

i

i ,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
C&,389

i ,988
2 ,002
2 ,260

1 ,891
2 ,167
2,,013

1 ,647
996
1 ,085

July
August
September

3 ,582
2 ,893
2.,720

4 ,147
2 ,532
3,,768

2 ,768
2 ,274
3 ,518

,800
1:
1;,951
1:,693

1 ,989
1:,903
2.,098

1 ,348
1 ,359
1.,758

October
November
December "

3.,809
3,,252e
2;, 65 Oe

3 ,387
:
13,,704
3.,673

3 ,777
;
4,,182
3 ,980

2.,155
1,,838
1;, 755e

1,,728
2.,264
2;,068

1.,924
1 ,748
2.,190

9 ;,803
11.,214
9, 195
9,, 711e

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

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

6,,015
6.,250
,444
5=
5,,748e

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

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

21,,017
30,,212
39,923

23 :,844
34,,325
45,,089

18.,445
27,,005
38,,944

12,,265
1 17,,709
23,
,457e
|

12,,812
18,,902
24,,962

,837
7=
12,,302
18, 164

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

i

;
i

|
- ;
i

1971 .

1970

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)

QUARTER
OR
MONTH

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND
MEMO:
BONDS
PUBLICLY
PRIVATELY PFD.
ISSUES INCLUDED
PLACED
STOCK
FOREIGN | CONVERTIBLE
OFFERED

GROSS PROCEEDS BY
TYPE OF ISSUER

MFG.

PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS 1

1971 - IV

10,764

5,135

2, 439

3, 193

133

767

2,,543

3, 041

1.,053

4,164

1972 - I
II
III
IVe/

9,80*
11,214
9,195
9,711

5,361
4,634
4,192
4,084

1, 593
2, 781
1, 867
2, 458

2, 851
3, 798
3,,136
3,,182

74
245
57
n.a.

511
449
836
352

1,,525
2,,109
1.,629
i:,045

2, 261
3,,495
2,,680
2,,874

1.,476
1,,369
856
I,,047

4,541
4,240
4,030
4,745

Nov.
Dec.

3,704
3,673

2,003
1,190

433
L ,283

1,,269
1,,201

62
12

395
150

811
980

1,,217
891

269
352

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

Apr.
May
June

3,275
3,598
4,341

1,622
1,676
1,336

789
744
1,,218

864
1,,148
1,,786

15
100
130

92
226
131

581
761
767

1:,219
738
I,,538

178
391
800

1,297
1,708
1,235

July
Aug.
Sept.

3,582
2,893
2,720

1,807
1,523
863

657
421
789

1.,118
948
1 :,070

3
17
37

450
183
203

574
452
603

798
635
1 ,247

586
237
33

1,624
1,568
838

Oct.
Nov,
Dec.

3,809
3,252
2,650

1,763
1,361
950

593
865
1 ,000

1 ,453
1 ,029
700

84
120

162
161
40

356
389
300

1 ,332
792
750

371
.651
25

1,749
1,421
1,575

Other issuers are extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source:
Securities and Exchange Commission. Quarterly supplements are available.




T A B L E 6: Large Long-term Public Security I s s u e s for New Capital
(Other than U.S. T r e a s u r y ) '
,"y'

ISSUER
Ethan Allen, Inc.
W h i t t a k e r Corp
Commonwealth Edison
Federal-Mogul Corp
Mississippi Power & Light
Tri-South Mtge Investors
TMC M o r t . Inv.
P u b S e r v i c e Co of C o l o r a d o
Houston L & P




TYPE

2

Conv debs
Sub debs
1st mtge
Bo^ids
1st mtge
Debs •
B e n e Int
C o m stk
C o m stk

AMOUNT
(MILLIONS
OF
DOLLARS).

20.0
25.0

100.0
30.0
30.0
25.0
15.0
30.0
69.4

MATURITY
1998
1993
2003
1998
2003
1980

COUPON
RATE OR
N U T INTEREST COST
4
9
7
7
7
7

7/8
5/8
5/8
1/2
3/4
3/4

'

-

OFFERING
YIELD
4.88
9.63
7.55
7.50
7.64
7.78

MOODY'S
RATING

Ba
Aa
A
A

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

AMOUNT
(MILLIONS

i
ISSUER
S t a t e and L o c a l
P i m a C o . , Ariz.
Lapeer Pub. S/D Mich
Dallas Co. Jr. Coll Dist., Tex
New Y o r k State Housing Finance
Agency
Los Angeles DWAP
Los Angeles DWAP
M i a m i Beach, Fla.
Minuteman Reg Vac. Tech S/D, M a s s
Cleveland Heights-Univ Heights

TYPE 2

OF
DOLLARS)

MATURITY

F e b r u a r y 5 thi:oueh 9. 19
|
MOODY'S
| OFFKR1
11,(1
RATING
j YIELD

COUPON
R A T E OR
N E T INTEREST COST

G.O.
G.O.
G.O.

10.7
12.5
30.0

1974-1993
1974-1993
1974-1993

4.91
4.91
4.76

3.50-5.10
3.50-5.10
3.40-5.00

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

178.7
24.7
25.3
13.5
12.5
10.0

1974-2005
2013
1979-1998
1973-1992
1974-1983

5.57
5.25
5.25
4.88
4.53
4.82

3.60-5.67
5.35
4.20-5.20
3.30-5.00
3.60-4.60
3.50-5.10

A
A
Aa
s#

*
Rights offering.
1 ° 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 offerings of $10 m i l l i o n and over.
2
I n c a s e of S t a t e and local government s e c u r i t i e s , G . O . denotes general o b l i g a t i o n ;
R e v . - U t . , revenue obligations secured o n l y by i n c o m e from public u t i l i t i e s ;
I 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 b o n d s secured b y revenue from specific t a x e s o n l y ; 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 .
3
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
D e v e l o p m e n t issues and non-quaranteed issues b y Federal A g e n c i e s .




A
Aa
Aa
A-l
A-l
Aa

10

T A B L E 7:

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)
As of F e b r u a r y

ISSUER

TYPE

Corp
Idaho Power
C h e s a p e a k e & P o t o m a c T e l e of
W. Va.
Con Edison
•Justice Mortgage Investors
I n s t i t u t i o n a l I n v e s t o r s Tr.
M a r i n e M i d l a n d Batiks
Central & Southwest Corp
Gen. Tel. Co. of Calif
E x c e l I n v e s t m e n t Corp
Riviana Foods Inc.
Realty Fund Trust
Ohio Edison
Jersey Central Power & Lt.
*Pacific Gas & Electric
• P u b 1ic S e r v i c e E l e c t r i c &
Gas
*Middle South Utilities
* G e n e r a l T e l e C o of S o u t h e a s t
•Southern Bell Tele & Tele Co.
Walter Kidde & Co.
•Greater Jersey Bancorp
•First City Bancorp of Texas
Texas Eastern Transmission
Petrolane Inc.
First Wisconsin Mort. Inv.
Continental Illinois Corp.




Com stk
Bonds
1st m t g e
Debs.
Bonds
Debs
C o m stk
C o m stk
Com stk
C o m stk
C o n v debs
Pref stk
Bonds
C o m stk (rts)
, P r e f stk
C o m stk
Bonds
Bonds
Debs
Bonds
Bonds
C o m stk
C o m stk
B e n e . Int
Bonds

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

27.0

Feb.

13

50.0
150.0
20.0
20.0
50.0
57.3
50.0
20.0
15.5
15.0"
35.0
30.0
125.0

Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Feb.
Mar.
Mar.
Mar.

13
14
14
15
22
27
28

60.0
90.0
25.0
35.0
65.0
20.0
40.0
84.0
35.4
26.3
100.0

Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
INDEF

6
8
12
13
14
15
20

1973

11
TABLE 7:

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U . S . Treasury) 1
(continued)

ISSUER

TYPE

S t a t e and L o c a l

As o f

AMOUNT
(MILLIONS
OF
DOLLARS)

February

G 0.
G .0.

11.2
1 9 , •0

Feb.
Feb.

13
,14

Md. 6
Columbia City S/D, Ohio
N e b r a s k a Pub P o w e r D i s t .
Clarkstown, N.Y.
Richmond M e t r o , A u t h . , V a .
R a l e i g h , N . C.
P e n n a St. Pub H e a l t h B l d g .
Auth.
North Texas University

G
G
G
G
G
G

.0.
0.
.0.
.0.
0.
0.

31..5
30.0
10,, 0
10.. 1
55.. 0
15.. 0

Feb.
Feb.
Feb.
Feb.
Feb.
Feb.

14
15
15
15
15
20

G,. 0 .
Rev.
G,. 0 .
G., 0 .
G., 0 .
G.. 0 .
G., 0 .

33.,7
15.. 0
1 2 . ,9
80.,0
100.,0
25.,0
30.,4

Feb.
Feb.
Feb.
Mar.
Mar.
Mar.
Mar.

21
26
31
7
7
15
20

G. 0 .
G. 0.
G . 0.

23. 0
10. 0
20. 0

Mar.
Mar.
Mar.

21
26
27

*
1
2

1973

APPROXIMATE DATE
OF O F F E R I N G

H i g h P o i n t , N. C.
Detroit
W a s h i n g t o n Sub S a n i t . D i s t . ,

A l b a n y , N. Y.
New York City
Maryland, State
Montgomery Co., M d .
f
Baltimore, Md.
1
*Santa Clara Co. Fac. Corp.,
Cal.
Washington
Jordan S/D Utah

9,

Included in table for first time.
Includes corporate and other issues of S15 m i l l i o n and over; State and local
G o v e r n m e n t issues of $10 m i l l i o n and over.
Includes 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 .




12
Table 8

STOCK PRICES AND VOLUME
TRADING VOLUME 2 '

STOCK PRICES 1 '
DATE
NYSE INDEX 3 '

AMEX *

D J . INDUSTRIALS

NYSE

AMEX

1970 - H i g h
Low

52.36

(1/5)

37.69

(5/26)

8 4 2 . 0 0 ( 1 2 / 2 9 ) 2 7 . 0 2 (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 - H i g h
Low.

57.76
48.73

(4/28)
(1/4)

9 3 0 . 8 2 (4/28) 26.68 (4/28)
7 9 7 . 9 7 ( 1 1 / 2 3 ) 2 2 . 7 2 (1/4)

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

6 . 7 (2/5)
2.7 (8/13)

1972 - H i g h
Low

65.14
56.23

(12/11) 1 0 3 6 . 2 7 ( 1 2 / 1 1 ) 28.53
(1/3)
8 8 9 . 3 0 (1/3)
25.61

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

7.4
2.6

1973 - Jan..

Feb.

(4/14)
(1/3)

5
12
19
26 .

65.22
64.95
64.51
63.05

1047.49
1039.36
1026.19
1003.54

26.68
26.51
26.31
26.09

19.3
20.4
18.6
19.2

4.0
4.8
3.8
3.9

2

61.79

980.81

9

61.90

979.46

25.60
25.50

16.6
17.2

3.7
3.8

<

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/
From
Through:
Day
Week
January 3, 1969
July 7, 1969
January 2, 1970

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

3.

12/31/65 - 50

4.

Average dollar value of shares listed.




4
4-1/2
5

5
5
5

27-1/2 hours per week.
periods, shown below:
Hours/
Week

(3/10)
(9/8)

13

T A B L E 9: Security Credit

END OF PERIOD
Outstanding:
1971 - O c t .
Nov.
Dec.
1972

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

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

C R E D I T EXTENDED T O
MARGIN CUSTOMERS BY:
BROKERS 1 | RANKS 2 j 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
BROKERS A N D
FREE CREDIT
DEALERS %
BALANCES

c..

7,360
7,310
7,840

(4)
(4)
(4)

2,160
2,170
2,220

(4)
(4)
(4)

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

8,190
8,690
9,140
9,540
9,760
10,160
10,350
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)

-20
-10
40

-50
530

—

350
500
450
400
220
400
200
210
70
20

--

4,950
4,910
5,400

2,410
2,400
2,440.

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

20
-40
490
300
480
440
390
190
310
150
120
20

50
20
10
10
30
90
50
90
50
20

—

—

—
—
—
-—
—
—
—
—

60
10
50
268
54
-30
-53
-129
-99
14
-128
-61
-41

-—
—
——

----—
—
—

---

M a r g i n debt, as reported b y 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 brokers and dealers for p u r c h a s i n g or c a r r y i n g securities other 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 e 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 brokers and
dealers 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 d a t a , figures are supplied by the N e w Y o r k
Stock 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 includes loans for regulated securities; bank
data includes 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
regulated or n o t .
Series discontinued




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

DATE '

MUTUAL SAVINGS BANKS
NET
REGULAR DEPOSITS 3
NEW
ANNUAL
MONEY 2
GROWTH
NET
1
RATE
FLOW

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW •
ANNUAL
MONEY 2
GROWTH
NET
1
FLOW
RATE

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
MONEY 2

Not Seasonally Adjusted
1969
1970
1971
1972e/

2, 549
4, 517
9, 621
9,,764

4.0
6.8
13.5
12.0

1971 - November
December
1972 - January

631
1 ,209
855

-—

November
Decemberp_/
1973 - January e/

625
1 ,200
875

1972

M—
——

-763
936
5,678
5,378

4,068
10,965
28,230
32, 692

512
325
716

1,562
3,114
3,266

514,
275

1,877
3,40-1
2,600

3.1
8.1
19.3
18.7

-•
-—-—

'

6,617
15,482
37,851
42,456

1,484
1,168
3,117

2,193
4,323
4,121

__

1,737
• 1,152
n.a.

2,502
4,601
3,475

—

Seasonally Adjusted
1972 - August
September
October
November
December R/

792
939
779
720
769

1973 -• January e/

917

1
2
3

10.9
12.8
10.5
9.7
10.2
.

12-1

--

2,706
2,930
2,7P6
2,246
2,149

16.7
17.8
16.2
13.3
12.6

--

3,348

19.4

---——

3.4
7.7
17.5
16.6

-1,003
5,285
20,653
23,911

—
—
-—
—
--

--

-1,766
6,231
26,331
29,289

1,996
1,493
3,832%
2,251
1,427
; n.a.

•
3,498
3,869
3,485
2,966
2,918

14.9
16.3
14.5
12.2
11.9

4,265

17.2

-—

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.
Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
insured associations only, which, represent 967=, 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 Mutual Savings Banks and Federal Home Loan Bank Board.




--

--

T A B L E 11:

DATE

TOTAL

Mortgage Commitments at S e l e c t e d Thrift Institutions

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. S T A T E )

(Billions of D o l l a r 3, S e a s o n a l l y A d j u s t e d ) r /
Nov.
Dec.

16.6
16.6

13.2
13.1

3.4
3.6

.20
.09

08
-.06

.12
.15

•Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

17.2
18.5
19.6
20.5
21.6
21.3
22.7
22.3
23.4
23.2
23.5
23.3

13.4
14.4
15.3
16.0
17.0
16.8
17.1
17.8
18.7
18.5
18.8
18.6

3.8
4.1
4.3
4.5
4.6
4.5
4.6
4.5
4.7
4.7
4.7
4.7

.23
1.36
1.13
.89
1.04
-.26
.38
.71
1.06
- .36
.38
-.19

.12
1.01
.93
.69
.96
-.18
.30
.76
.89
-.25
.34
-.20

.11
.35
.20
.20
.08
-.08
.08
-.05
.17
-.11
.04
.01

l

Biased on d a t a from F e d e r a l 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
New York State.
D a t a for s a v i n g s b a n k s and S & L ' s i n c l u d e a m i n o r a m o u n t of n o n residential commitments.
S S L c o m m i t m e n t s i n c l u d e loans in p r o c e s s .
Net changes
are d e r i v e d d i r e c t l y f r o m u n r o u n d e d o u t s t a n d i n g s levels as r e p o r t e d and after
seasonal adjustment by F e d e r a l Reserve.
S u b t o t a l s m a y not add -to t o t a l s b e c a u s e
of rounding.




16

T A B L E 12: Net Change in Mortgage Holdings

1

F I N A N C I A L INSTITUTIONS
DATE

T O T A L ±1
INCLUDING
FNMA-GNMA

TOTAL 1 COMMERCIAL
BANKS
•
1

MUTUAL
SAVINGS
BANKS

SAVINGS &
LOAN
ASSOC.

LIFE
INSURANCE
COMPANIES

FNMA-GNMA

Not S e a s o n a l l y A d j u s t e d
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 - M a y
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

4,958
5,724
4,872
5,931
5,286
4,779
5,114
n. a.

4,674
5,692
4,717
5,563
4,918
4,684

454
585
438
553
502
472

2,720
3,453
2,758
3,313
2,926
2,673

24
54
79
97

284
37
164
368

4,984
n. a.

1,500
1,600
1,500
1,600
1,400
1,400
1,500
1,000

90
139
255

137
95
130
132

1971 - N o v .
Dec.

3,847
4,371

3,558
4,118

909
862

468
524

2,101
2,367

80
365

289
253

1972 - J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

3,456
3,828
4,464
4,363
4,908
5,176
4,849
5,471
4,748
4,714
5,282
n. a.

3,250
3,550
4,329
4,327
4,521
5,060
4,593
5,179
4,714
4,738
5,212
n. a.

1,112
1,178
1,264
1,361
a,434
1,489
1,451
1,477
1,155
1,393
1,524
1,164

290
315
464
400
453
516
472
515
537
484

1,871
2,075
2,596
2,481
2,567
2,959
2,678
3,108
2,911
2,726

513
n.a.

2,876
3,130

-23
-18
5
85
67
96
101
79
111
135
299

206
278
135
36
387
116
147
292
34
- 24
70

n.a.

96

1

2

2,712
517
;
3,101
S e a s o n a l l y A d j u s t e d (r)

<

M o n t h l y data for c o m m e r c i a l b a n k s based on Federal R e s e r v e e s t i m a t e s benchmarked
to C a l l Report data 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
derived 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 Bank B o a r d , Institute of Life Insurance .
and, through A u g u s t 1-968, 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 theres
after 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 conceptual d i f f e r e n c e s for
which 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 groups
a c c o u n t e d for 87 per cent of the net increase estimated for all h o l d e r s in 1967.
B e g i n n i n g J a n u a r y 1972 data r e f l e c t a c t i v i t y in limited amount of c o n v e n t i o n a l
mortgages.




TABLE 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
WEEK
ENDED

TOTAL
OFFERED

TOTAL

ACCEPTED
906MONTH
DAY

July

24

123.9

113.0

113.0

Aug.

7
" 21

106.2
114.6

81.7
87.2

81.7
87.2

5
18

220.6
295.9

151.2
148.1

151.2
148.1

2
16
30

352.8
271.2
186.4

211.5
224.9
162.7

211.5
224.9
162.7

13
27

78.7
60.8

49.2
36.2

49.2
36.2

11
26

82.2
108.7

42.4
66.3

42.4
66.3

8
22

74.2
107.0

61.3
92.1

61.3
92.1

Sept.

Oct.

Nov.
Dec.

Jan.

*

1-YEAR"
& OVER

90DAY

—

7.62

—

—

7.63
7. 62

—

—

7.63
7.65

—

6MONTH

--

—

—

«• —

——

--

—

--

—

7.71
7.69
—

—

7.67
7.67
7.68
7.68

—

--

"

1

—

7.69 ,
7.72
7.72

*—

1-YEAR
& OVER

__

__

--

—

"

N o t e : U 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 s e l l e r s 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 F N M A f o r w a r d p u r c h a s e c o m m i t m e n t s .
A v e r a g e s e c o n d a r y m a r k e t y i e l d s 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 f e e and
r e q u i r e d p u r c h a s e and h o l d i n g of F N M A s t o c k , a s s u m i n g p r e p a y m e n t of
15 y e a r s f o r 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 .
Yields shown
a r e g r o s s , b e f o r e d e d u c t i o n of 38 b a s i s p o i n t s fee paid b y i n v e s t o r s
to s e r v i c e r s .




18

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

TOTAL

RESIDENTIAL 3

1- to 4FAMILY

MULTIFAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

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.&
3.8

3:9
5.0
4.9
4.7

7.2
&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
1 8
1.9

1969 - I
II
III
IV

31.8
29.1
26.2
24.9

23.6
21.5
19.Q
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 ,

9.9
9.9
11.5
13.2

1.5
1.5
2. 1
2.2

16.3
19.1
. • 19.9
19.5

2.2
2.3
2. 3
2.5

24.4
24. 8
25.3.

2.6
2.6
2.9

1971 - I
II
HI
IV
1 9 7 2 I
/
II
IHe

-37-1.
47.8
53.6
53,4

.

61.2
64.9
66.2

14.2
16.9
c:21;8
'
22.5

„

. 9.1
5.1
;/ « 11.5 v . 5 : 4
15 <5
- 6.3
16.0 '
6.5

26.6
,36.1
40.1
40.1

18.5
26.4
31,4
31.4

; 43.9
47.3
48.4

34.3"
37.4.
38.0

.

8.L
9.7
8.7
8.7

4.8
4.6
5.2
' 6,7
8w 3
9.4
11.2
10.8.

9.6
9.9
10.4

'*
v
/v
!

14.8 V
,14. 9
14.9 x

,

1 Derived from data op
outs
- mortgage
o-o- debt
—w u
u L atanding"*
uauumg f
uoiii
L*epo ^ |ns S i n c e
r o m >reaerai
e d e ^ S f Deposit
rd, Institute nf
fp
>•„ ,
t?on^ ^10n'.Federal , M e
Bank Board,
of Ti
Life




• frnm ralol

CI

. c r~r~l

.

—

\

r- '

r

'

%

•

19
^ ^ . ^ J A B L E 15: Private Housing Starts and Permits
BUILDING.
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

STARTS
aaRapNALLY ADJUSTED
^ANNUAL RATE
il-FAMILY 2 OR MORE

1971

-December

1972

-January
February
March
April

2,457 1,347

2,487 1,415
2,682 1,325
2,369 1,302
2,109 1,167
2,350 1,344.
2,330 1,296
2,218 1,289
July
August
2,484 1,410
September . 2,397 1,383
October —
2^462 1*308
1,307
November r/
1,240
December

St-

TOTAL

UNADJUSTED
TYPE OF FINANCING
FHA
VA I OTHER

1,110

152.1

85.4 7.4

1,071
1,357
1,067
942
1,006
1,034
929
1,074
1,016
1,154

150.9
153.6
205.8
213.2
227.9
226.3
207.5
231.0
204.4

218.2

1,152

186.3
152.7

37.4 7.5
27.8 8.0
37.710
29.1 8
32.4 9.4
31.9 9.6
26.2 9.4
30.3 9.9
28.2 8.9
25.4 8.5
21.3 8.0
——- 5.8

1,081

•k

59.3

2,142

106.0

2,204
2,056
2,007
1,991
1,955
2,121
2,108
2,237
2,265
2,216
2,139
2,372

117.8
155.7
172.9

186.1

184.8
171.9
190.8
167.3
184,3
157.0

Total starts are Census estimates including farm for both permit-issuing and
pou-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started at that time. FHA and VA
starts are units started under commitments by these agencies \ o insure or guarantee the mortgages. A s 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 are Census estimates based on 13,000 or all known permitissuing places. U n l i k e starts, seasonally adjusted building permits reflect
direct adjustment for differences in the number of days per m o n t h , a a s w e l l as
other differences in tiding and Coverage.

„
r

:

x




.

•

:

TABLE 16: Mortgageand Bond Y i e l d s
' ' FHA
, MORTGAGES
:

2

30-year
9.29.:^
8.40

% # 9 7 1

- #v.
/bee.

9 •

•' "

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

-.10
-.74

9.43
7.72

.37
.70

7.95
7.55

.28
-.19

8.26
7.02

.52
-.36

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

.11
.14
.10
.10
.07
.06
.11
.10
<y .14

7.21
7.34
7.24
• 7.45
• 7.3B
7.32
7.38 ,
7.37
7.40

.28
*12
.21
.05
„15
.22
.16
.18

.13
.13
.14

7.38
7.09
7.15

.19
.61
.55

F 3 2

•;

^September

7.56

7.60
7.60
7.55
7.60
7.60
7.60
7.65
7.65
7.70

October
November
December

7.57
7,57
7.56

7.70
7.70
7.70

Feb.
'Mar.
Apr.
May
June
July
August

NEW
.
ISSUE
Aae
UTILITY
4

8.60
8.30

' ^ 9 7

J

I

CONVEN^SPREAD BET I O N A L - TWEEN Y I E L D S
MORTON C 0 N V . &
GAGES
FHA M O R T 3
GAGES 5

1

' •

.16

%

^.Neither m o r t g a g e nor bond y i e l d s i n c l u d e a l l o w a n c e for s e r v i c i n g costs which are
*i§tich 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 pay interest semi-annually^ 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 c o m p u t e d as equivalent to
a s e mi-annual interest i n v e s t m e n t , w o u l d b e slightly h i g h e r than given in the
table. .
•.
'
2
Based on F H A - f i e l d - o f f i c e o p i n i o n s 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 immediate "delivery.
Separate
data a v a i l a b l e for 25-year a n d - - b e g i n p i n g J u l y 1961-*-30-year'mortgages with
minimum, d o w n p a y m e n t s , w e i g h t e d by p r o b a b l e volume of transactions.
Yields
,
c o m p e t e d b y FHA, a s s u m i n g p r e p a y m e n t period o f , 1 2 years for 25-year m o r t g a g e s
and 15 years, for 30-year m o r t g a g e s .
;
t

3

Based on-. FHA-^field-office o p i n i o n o n t y p i c a l c o n t r a c t 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 i n the m a r k e t areas of insuring
officers; /
4- See n o t e - f o r T a b l e 1.
*
5
Yield spread equals 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 yield.
6 .Yield spread e q u a l s FHA s e c o n d a r y m a r k e t y i e l d less new A a a c o r p o r a t e bond
• Yield"

•-




'

'

21
TABLE 17: Conventional Mortgage Terms

DATE

1971
Nov.
Dec.

1972
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov. £ /
Dec. p /

1

NEW HOMES
CON- FEES &
TRACT CHARGES EFFEC- MATURITY
RATE
(PER
(YEARS)
TIVE
(PER
CENT) RATE «
CENT)
2
3 g
K,.
i

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

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

7 .65
7 .62

0.87
0.93

7 .79
7 .77

26.7 ,
26.6

75 .4
74 .5

27.3
26.5

7.56
7.51

0.79
0.78

7 .69
7 .64

24.6
24.6

7..62
7..45
7..38
7..38
7..40
7. 41
7.,43
7. 45
7. 43
7.48
7. 50
7. 51

0.95
1.02
0,84
0.83
0.84
0.85
0.83
0.86
0.86
0.88
0.91
0.-93

7,.78
7,.61
7..52
7.,51
7..53
7.,55
7.,56
7. 59
7. 57
7. 62
7. 65
7.,66

26.5
27.0
27.2
27.2
27.2
27.2
27.2
27.5
27.3
27.2
27.5
27.5

75.0
76..5
76..2
76.,0
76.,2
76. 5
.. 77. 0
> 77. 5
77. 5
77. 3
77. 3
77. 9

27.6
27.8
28.2
28.5
28.5
27.8
28.2
27.9
27.9
27.4
28.0
29.1

7.45
7.35
7.31
7.30
7.33
7.36
7.37
7.39
7.42
7.43
7.44
7.45

0.82
0.79
0.77
0.78
0.77
0.78
0.83
0.81
0.83
0.84
0.84
0.83

7,.58
7..48
7,.44
7..42
7..46
7.,49
7. 50
7. 52
7. 55
7. 57
7.58
7.5,9

24.7
25.4
25.1
25.2
25.2
25.5
25.6
26.3
26.2
26.1
26.3
26.1

a

LOAN
AMT.
($000.)

74.6
74.6

23.2
23.9

74.7
75.8
75.6
75.3
75.4
76.1
76.2
76.5
76.5
76.3
76.8
76.6

24.1
24.8
24.4
24.9
24.6
25.2
25.2
25.4
24.8
25.0
25.4
25.4

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 sitigle 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

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 ate paid by the borrower. They exclude any closiftg costs related solely to
transfer of property ownership.

3

Includes fees & charges amortized over a 10 year period in addition to the contract
0
interest rate.