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Capital
Market
Developments

February 12, 1979

Prepared by the
CAPITAL MARKETS SECTION
in conjunction with the
MORTGAGE and CONSUMER
FINANCE SECTION




DIVISION OF RESEARCH AND STATISTICS
BOARD OF GOVERNORS
F E D E R A L R E S E R V E SYSTEM
Washington, D C. 20551

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i

4

Index '

SUBSCRIPTION RATES:
Weekly $15.00 per year or $.40 each in the United
States, its possessions, Canada, and Mexico; 10 or
more of the same issue to one address, $13.50 per
year or $.35 each. Elsewhere, $20.00 per year or $.50
each. Address requests to Publications Services, Division of Administrative Services, and make payment
remittance payable to the order of the Board of
Governors of the Federal Reserve System in a form
collectible at par in U.S. Currency.




TABLES

1-6
7, 8

SECURITY VOLUME AND YIELDS
STOCK MARKET AND SECURITY
CREDIT
9 - 1 6 MORTGAGE MARKET
SYMBOLS
e

ESTIMATE

P
r

PRELIMINARY
REVISED

n.a.

NOT AVAILABLE
DATA DO NOT EXIST

Table 1

YIELDS, VOLUME AND RECEPTION
CORPORATE BOND MARKET
YIELDS
WEEK ENDING

1978-Dec

1979-Jan.

1
8
15
22
29
5
12
19
26

Feb.

2

9

NEW ISSUE
Aaa UTILITY

1

VOLUME

RECENTLY
OFFERED
Aaa UTILITY

9.27
9.28
9.29

2

GROSS
OFFERINGS
($ MILLIONS)

3

PER CENT
SOLD BY END
OF WEEK

NEW ISSUES 4
IN SYNDICATE
($ MILLIONS)

9.28
9.31
9.35
9.54
9.51

9.54

—
—*

9.42p

10
0
530
187

100
97
100

18
0

9.40r
9.51p

——

92
86
75
100

9.51
9.55
9.57
9.45

—

388
455
560
5
0

663
454

100
97

0
15

30
64
140
0

—

0
«——

MUNICIPAL BOND MARKET
YIELDS
WEEK ENDING

VOLUME

MOODY'S
NEW ISSUE
Aaa

BOND BUYER
20-60ND
INDEX

GROSS
OFFERINGS
($ MILLIONS)

3

PER CENT
SOLD BY END
OF WEEK

NEW ISSUES 4
IN SYNDICATE
($ MILLIONS)

1978-Dec.

1
8
15
22
29

5.55
5.70
5.85
6.05
6.05

6.29
6.29
6.45
6.67
6.61

753
1,103
1,339
470
14

81
88
83
89
90

169
239
340
209
174

1979-Jan.

5
12
19
26

6.05
6.00
6.00
5.75

6.58
6.50
6.48
6.30

137
960
488
460

78
89
94
87

78
151
65
77

Feb.

2
9

5.70
5.60

6.22
6.31

393
265

81
80

115
53

NOTES:
1

Federal Reserve series of implied yield on newly issued, Aaa rated utility bond with 5-year call protection.

2

Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection, released from price
restrictions sometime during the last four weeks.

3

Estimated by F.R. on the basis of available data.

Corporate Market: Salomon Brothers Bond Market Roundup; Municipal Market: Weekly Bond Buyer. Data are adjusted by Federal Reserve when
necessary to make coverage of this series consistent with the gross offerings series.


4

Table 2

HIGH GRADE BOND YIELDS
NEW ISSUE
A a a UTILITY

DATE

1

RECENTLY OFFERED
A a a UTILITY

2

MOODY'S SEASONED
CORPORATE A a a

3

U . S . GOVT. 20-YEAR
CONSTANT MATURITY

4

BOND BUYER
2 0 - B 0 N D INDEX

1974 - H i g h
Low

10.61 (10/4)
8.05 (2/15)

10.52 (10/11)
8.13 (1/4)

9.39 (10/11)
7.73 (1/4)

8.68 (8/30)
7.39 (1/4)

7.15 (12/12)
5.15 (2/7)

1975 - H i g h
Low

9.80 (5/2)
8.89 (2/7)

9.71 (5/25)
9.06 (2/28)

9.01 (5/2)
8.57 (2/28)

8.63 (9/19)
7.63 (2/21)

7.67
6.27

1976 - H i g h
Low

8.95 (5/28)
7.93 (12/10)

9.10
7.84

(1/2)
(12/31)

8.66 (5/28)
7.91 (12/31)

8.17 (5/28)
7.27 (12/31)

7.29 (1/2)
5.95 (12/16)

1977 - H i g h
Low

8.36 (12/16)
7.90 (1/7)

8.48 (12/30)
7.95 (1/7)

8.28 (12/30)
7.88 (1/7)

7.99 (12/30)
7.26 (1/7)

5.93 (2/4)
5.45 (11/17)

1978 - H i g h
Low

9.29
8.60

9.54 (12/22)
8.48 (1/6)

9.27 (12/29)
8.30 (1/6)

9.00
8.02

6.67
5.58

1978 - November
December

9.27
9.28

9.27
9.41

9.03
9.16

8.75
8.90

6.19
6.51

1979 - J a n u a r y

9.54

9.51

9.25

8.98

6.47

__

9.51
9.55
9.57
9.45

9.26
9.26
9.28
9.24

8.99
9.01
9.03
8.95

6.58
6.50
6.48
6.30

9.40r
9.51p

9.19r
9.21p

8.89r
8.96p

6.22
6.31

1979 - J a n .

Feb.

5
12
19
26
2
9

9.54
— —

9.42p

(12/15)
(3/24)

(12/22)
(1/6)

(10/3)
(2/13)

(12/22)
(3/17)

NOTES:
1

Federal Reserve series of implied yield on newly issued, Aaa-rated utility bond with 5-year call protection.

2

Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection released from price restrictions sometime during the last 4
weeks.

3

Weekly average of daily closing figures.

4
5

Weekly average of daily figures. U.S. Treasury data.
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. Weekly Bond Buyer data.




5

5
Table 3

LONG-TERM CORPORATE AND
STATE AND LOCAL GOVERNMENT
SECURITY OFFERINGS AND PLACEMENTS
IN MILLIONS OF DOLLARS

GROSS PROCEEDS
STATE AND LOCAL

CORPORATE

PERIOD

1979

1978

1977

1979

1978

1977

3,275e

3,013
2,657
4,442

4,362
2,792
5,578

2,900e

3,306
2,753
4,844

3,402
3,442
4,063

April
May
June

3,285
4,035
5,215

3,998
3,797
5,660

3,824
5,525
4,369

3,409
4,566
5,786

July
August
September

4,226
3,311
3,832

4,289
3,469
4,177

3,920
6,407
2,323

3,113
4,118
4,013

October
November
December

3,750e
3,200e
4,150e

4,221
5,331
6,531

3,231
4,320
3,690

3,807
3,332
3,646

12,732
13,455
11,935
16,083

10,903
13,718
12,650
11,241

10,907
13,761
11,244
10,785

26,187

24,621
37,271
48,512

24,668
35,912
46,697

January
February
March

10,112

01
02
03
04

12,535
11,369
11,lOOe

1st Half
3 Qtrs.
Year

22,647
34,016
45,116

38,122
54,205

NOTES:
1

Securities and Exchange Commission estimates of gross proceeds.

2

Securities Industry Association estimates of principal amounts.




Table 4

NEW CORPORATE SECURITY ISSUES
BY TYPE OF ISSUE AND ISSUER
IN MILLIONS OF DOLLARS

GROSS PROCEEDS BY TYPE OF ISSUER

GROSS PROCEEDS BY TYPE OF ISSUE
PERIOD

BONDS

MEMO
COMMON
MANUFACAND
ISSUES INCLUDED
PRIVATELY
TURING
PREFERRED
PLACED
FOREIGN CONVERTIBLE
STOCK
3,527
6
2,707
268
3,031
4,975
108
2,874
346
3,440
3,506
2,214
272
495
3,250
5,999
4,217
275
39
4,054

1
PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS

3,047
4,125
2,901
4,246

1,415
1,059
644
1,320

5,238
4,830
5,140
6,460

TOTAL

PUBLICLY
OFFERED

1977 - I
II
III
IV

12,732
13,455
11,935
16,083

6,498
5,606
6,215
5,867

1978 - I
II
III

10,112
12,535
11,369

4,748
5,421
5,284

3,383
4,196
3,868

1,981
2,918
2,217

233
260
120

4
158
115

2,218
2,898
2,534

2,367
3,672
3,012

844
384
1,120

4,684
5,581
4,701

1977 - September
October
November
December

4,177
4,221
5,331
6,531

1,908
2,114
2,211
1,542

1,569
979
1,200
3,820

700
1,128
1,920
1,169

22
10
89
176

208
1
22
16

833
731
782
2,541

1,501
1,437
1,729
1,080

322
8
1,013
299

1,521
2,045
1,805
2,610

1978 - J a n u a r y
February
March
April
May
June
July
August
September

3,013
2,657
4,442
3,285
4,035
5,215
4,226
3,311
3,832

1,382
1,464
1,902
1,958
1,719
1,744
2,177
1,497
1,610

998
667
1,718
853
1,277
2,066
1,541
1,032
1,295

633
526
822
474
1,039
1,405
508
782
927

233
0
0
12
106
142
80
40
0

0
0
4
20
2
136
16
6
93

273
716
1,229
549
878
1,471
842
721
971

644
465
1,258
743
1,685
1,244
799
875
1,338

519
34
291
35

1,578
1,441
1,665
1,960
1,470
2,151
2,231
1,162
1,308

NOTES:
Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other.
1
Source: Securities and Exchange Commission.



"""

349
353
552
215

;

T a b l e 5A

INTERMEDIATE AND LONG-TERM
PUBLIC SECURITY OFFERINGS
OTHER THAN U.S. TREASURY '
J a n u a r y 29 t h r o u g h F e b r u a r y 9 ,

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

1979

MATURITY

COUPON RATE

OFFERING
YIELD

MOODY'S/S&P'S
RATINGS

CORPORATE

H o u s t o n L i g h t i n g & Power Co.
Citicorp
B e n e f i c i a l Corp.
M o r t o n ' s Shoe Co.
P a c i f i c T e l . & T e l e . Co.
S o u t h e r n R a i l w a y Co.
T e x a s Power & L i g h t Co.
Houston I n d u s t r i e s I n c .
P u g e t Sound Power & L i g h t Co,
T e x a s Power & L i g h t Co.
Commonwealth E d i s o n Co.

Pfd. stk.
Notes**
Notes
Debt.
Debt.
Equip, t r .
1 s t mtg.
Com. s t k .
Pfd. stk.
Pfd. stk.
Com. s t k .

500.0
150.0
16.0
300.0
24.0
100.0
58.0
50.0
30.0
187.0

OTHER
Hyro-Quebec

Debt.

200.0

—

——

2004
1985
1996
2016
1980-1994
2009

9.36
8.84

2009

Rights offering.

1

Includes only corporate and other security offerings of $15 million and over; excludes options, exchanges, and secondary offerings

y

Aa/AA
Aaa/AAA
Aa/AA
B/B
A/A+
Aa/AA+
Aaa/AAA

9.36
8.90

Baa/BBB
Aa/AA

—

*




9.04
11.05
9.40
12.75
9.88
10.20-9.35
9.42

——

NOTES:

** F l o a t i n g - r a t e n o t e s .

9.04
11.05
9.40
12.75
9.88
9.25
9.38

10.00

10.00

Aa/AA

X

oo
T a b l e SB

INTERMEDIATE AND LONG-TERM *
PUBLIC SECURITY OFFERINGS
OTHER THAN U.S. TREASURY '
J a n u a r y 29 t h r o u g h F e b r u a r y 9 , 1979
TYPE

ISSUER

AMOUNT
(MILLIONS OF
DOLLARS)

MATURITY

MOODY'S/S&P'S
RATINGS

OFFERING
YIELD

NET INTEREST
COST

STATE AND LOCAL

P h i l a d e l p h i a , Pa.
P h i l a d e l p h i a , Pa.
C h a r l e s t o n Co., S.C.
Charleston Co., S.C.
Louisiana, State of
I s l i p , N.Y.
C h a r l o t t e , N.C.
S y r a c u s e , N.Y.
F l o r i d a , S t a t e of
M a r t i n s v i l l e I n d u s t . Dev. A u t h . , Va.
M a r t i n s v i l l e I n d u s t . Dev. A u t h . , Va.
J o n e s b o r o , Arkansas
J o n e s b o r o , Arkansas
San B e r n a r d i n o R e d e v . A g c y . , C a l .
San B e r n a r d i n o R e d e v . A g c y . , C a l .
San B e r n a r d i n o R e d e v . A g c y . , C a l .
S o u t h C a r o l i n a , S t a t e of
S t a c k C o . , Ohio
S t a c k C o . , Ohio
Texas, S t a t e of
New York S t a t e Dorm. A u t h .

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

16.6
43.4
9.5
12.9
91.8
10.3
10.6
15.5
117.5
4.9
5.2
6.0
14.0
7.0
6.0
21.8
22.2
10.4
11.8
35.0
19.8

1980-2004
1980-2009
1983-1993
2008
1980-1999
1980-1999
1981-1999
1979-1993
1981-2008
1982-1996
2004
1981-1998
2011
1981-1994
2000
2011
1979-1995
1981-1997
2005
1987-1996
2009

6.60-6.90
6.60-7.58
5.90-6.80
7.25
5.10-5.70
5.25-6.00 .
5.00-5.70
5.25-5.60
5.10-6.10
5.80-6.80
7.30
5.50-7.00
7.25
5.60-6.75
7.00
7.13
5.00-5.30
5.40-7.00
7.25
5.00-5.25
7.63

7.70
7.77 :
—

5.51
5.95
5.33
5.86
7.16
7.16
7.15
7.15
7.15
5.24

5.17

Baa/ABaa/AA/AA/AAa/AA
A/AAA
Aaa/AAA
Aa/ —
Aa/AA
A/A
A/A
—/AA
—/AA
— /A
--/A
— /A
Aaa/AAA
—

/ —

—

/ —

Aaa/AAA
Baa/A+

NOTES:
1

Includes only state and local security offerings of $10 million and over; excludes secondary offerings.

2

For State and local government securities, G.O. denotes general obligation; Rev. denotes revenue obligations.

*

00

G r e a t e r t h a n 12 m o n t h s .




•

•

•

»

•

•

•

•

•

•

•

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9
Table 6A

FORTHCOMING INTERMEDIATE AND LONG-TERM
PUBLIC SECURITY OFFERINGS
OTHER THAN U.S. TREASURY '
As o f F e b r u a r y 9 , 1979

ISSUER

TYPE

AMOUNT
(IN MILLIONS
OF DOLLARS)

APPROXIMATE
DATE OF OFFERING

CORPORATE

M i s s o u r i P a c i f i c R a i l r o a d Co.
Ohio E d i s o n Co.
Duquesne L i g h t Co.
Texas E l e c t r i c S e r v i c e Co.
G e o r g i a Power Co.
G e o r g i a Power Co.
P a c i f i c N o r t h w e s t B e l l T e l e . Co.
C a e s a r s World I n c .
L o u i s i a n a Power & L i g h t Co.
P o r t l a n d G e n e r a l E l e c t r i c Co.
South C e n t r a l B e l l T e l . Co.
*Transamerica F i n a n c i a l Corp.
Aristar Inc.
El P a s o E l e c t r i c Co.
Duke Power Co.
S o u t h w e s t e r n B e l l T e l . Co.
^Columbia Gas S y s t e m
C i n c i n n a t i Gas & E l e c t r i c Co.
Gulf S t a t e s U t i l i t i e s
* E c h l i n M a n u f a c t u r i n g Co.
F e d e r a l E x p r e s s Corp.

Equip t r .
Com. s t k .
1 s t mtg.
1 s t mtg.
1 s t mtg.
Pfd. s t k .
Com. s t k . ( r t s )
Debt
Pfd. stk.
Com. s t k .
Debt.
Debt.
Notes
1 s t mtg.
Com. s t k .
Debt.
1 s t mtg.
1 s t mtg.
1 s t mtg.
Com. s t k .
Com. s t k .

19.9
108.0
100.0
75.0
100.0
50.0
170.0
25.0
35.0
60.0
250.0
75.0
25.0
30.0
110.0
450.0
75.0
100.0
75.0
25.0
20.0

Feb.
14
Feb.
14
Feb.
20
Feb.
20
Feb.
21
Feb.
21
Feb.
21
Feb.
22
Feb.
22
Feb.
27
Feb.
27
Feb.
Feb.
Mar.
6
Mar.
14
Mar.
20
21
Mar.
Mar.
21
Mar.
22
Indef,
Indef •

OTHER
European I n v e s t m e n t Bank
European I n v e s t m e n t Bank
Ontario, Province of
^Stockholm

Bonds
Bonds
Bonds
Debt.

100.0
150.0
300.0
50.0

Feb.
Feb.
Feb.
Feb.

NOTES:
*

Included in table for first time.

1

Includes only corporate and other security issues of $15 million and over; excludes exchanges, options




15
15
15
28

10
Table 6B

FORTHCOMING INTERMEDIATE AND LONG-TERM
PUBLIC SECURITY OFFERINGS
OTHER THAN U S. TREASURY

1

As of F e b r u a r y 9, 1979
AMOUNT
(IN MILLIONS
OF DOLLARS)

APPROXIMATE
DATE OF OFFERING

ISSUER

TYPE

P l e a s a n t s C o . , W. Va.
*Wood C o u n t y , W. Va.
*Monongalia C o u n t y , W. Va.
Kansas, S t a t e of
W a s h i n g t o n P u b l i c Power S u p p l y S y s .
New York, S t a t e o f
Iowa H o u s i n g F i n . A u t h .
Dade C o . , F l a .
*Nevada H o u s i n g D i v i s i o n
A r l i n g t o n I n d e p . S c h . D i s t . , Texas
* A l b u q u e r q u e , N.M.
Jacksonville Elec. Auth., Fla.
* 0 y s t e r B a y , N.Y.
* W e s t l a k e , Ohio
*Cuyahoga C o u n t y , Ohio
*Clark County S . D . , Nevada
Hawaii, S t a t e of
I l l i n o i s , S t a t e of
* M i n n e a p o l i s S p e c i a l S . D . # 1 , Minn.
*New York S t a t e H o u s i n g F i n a n c e Agy.
* S u l l i v a n C o u n t y , Tenn.
Milwaukee C o . , W i s e .
H o w e l l Pub. S c h o o l D i s t . , Mich.
Connecticut, S t a t e of
Redwood C i t y Gen. Imp. D i s t . , C a l .
S o u t h Dakota H o u s i n g D e v . A u t h .
Kentucky H o u s i n g Corp.
Municipal A s s t . Corp., N.Y.C.
New York C i t y Educ. C o n s t r . Fund
A l a s k a H o u s i n g F i n a n c e Corp.
* S a l t R i v e r P r o j . A g r i c . Impro. &
Power D i s t . , A r i z o n a
Delaware S t a t e Housing Auth.
Ohio, S t a t e o f
Orange C t y . Muni. Water D i s t . C a l .
* E a s t B a t o n Rouge P a r i s h M o r t . F i n .
A u t h . , La.

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

25 .0
21, . 3
20, .0
40, . 0
175 .0
133, .0
112, .6
61, .6
14, .0
16. .0
78 .2
48. .0
11. . 4
24, .5
18, .7
14, .0
75. ,0
150, .0
2 8 . .0
70, .0
10. .0
4 7 . ,7
21, .0
1 2 5 . ,0
11. .8
150. .0
60. ,0
106. .0
90. .0
72. ,0

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

13
13
13
14
14
14
15
15
15
15
20
20
21
22
22
22
22
22
27
27
27
27
27
27
27
28

Rev.
Rev.
G.O.
Rev.

120. .0
23. ,0
50, .0
90, .0

Mar.
Mar.
Mar.
Mar.

1
1
1
7

Rev.

100. ,0

Mar.

15

STATE & LOCAL

NOTES:
1

Includes state and local government issues of $10 million and over, foreign government. International Bank for Reconstruction
issues of Federally sponsored agencies; excludes secondary offerings.

*

Included in the table for the first time.




Table 7

STOCK PRICES AND VOLUME
STOCK PRICES

DATE

NYSE INDEX

BJ INDUSTRIALS

TRADING VOLUME

AMEX

NASDAQ

NYSE

AMEX

NASDAQ

1974 •High
Low

53.37 (3/13)
32.89 (10/3)

891.66 (3/13)
577.60 (12/6)

102.01 (3/14)
58.26 (12/9)

96.53 (3/15)
54.87 (10/3)

24.9 (1/3)
7.5 (7/5)

4.4 (1/3)
.9 (9/26)

7.5 (1/3)
2.8 (7/5)

1975 •High
Low

51.24 (7/15)
37.16 (1/8)

881.81 (7/15)
632.04 (1/2)

96.86 (7/15)

62.20 (1/2)

88.00 (7/15)
60.70 (1/2)

35.2 (2/13)
8.7 (9/15)

4.2 (2/21)
1.1 (9/15)

8.1 (2/13)

1976 •High
Low

57.51 (9/21)
48.04 (1/2)

1014.79 (9/21)
858.71 (1/2)

107.05 (7/12)
84.31 (1/2)

92.52 (7/15)
78.06 (1/2)

44.5 (2/20)
10.3 (1/2)

8.6 (2/20)
1.1 (1/2)

11.1 (2/20)

1977- •High
Low

57.69 (1/2)
49.78 (11/2)

999.75 (1/3)
800.85 (11/2)

127.89 (12/30)
109.61 (1/12)

105.05 (12/30)
93.66 (4/5)

35.3 (11/11)

4.2 (1/13)
1.4 (9/22)

11.2 (11/10)

1978 •High
Low

60.38 (9/12)
48.37 (3/6)

907.74 (9/8)
742.12 (2/28)

176.87 (9/15)
119.73 (1/11)

139.25 (9/13)
99.09 (1/11)

66.4 (8/3)
7.6 (1/20)

1979- H i g h
Low

56.99 (1/26)
53.93 (1/2)

859.75 (1/26)
811.42 (1/2)

162.35 (1/26)
152.03 (1/2)

127.04 (1/26)
117.84 (1/2)

37.1 (1/12)
18.3 (1/2)

55.41
55.91
55.85
56.99

830.73
836.28
837.49
859.75

157.66
160.33
161.04
162.35

122.05
123.74
124.65
127.04

55.79
54.88

834.63
822.42

159.25

125.82
123.76

1979
Jan.

5

12
19

26
Feb.

2
9

160.08

NOTES:
1

Figures other then high* end lows ere Frideys only. Highs end lows ere for the yeer end ere not neeesserily for Frideys.

2

Volume figures are weekly evereges of deily figures (millions of shares).

3

12/31/66 - 50

4

Besed on everege price chenge until September 4, 1973 thereafter, based on market value of shares listed.




/

10.6 (10/10)

11.0 (10/30)

2.5 (9/15)
3.5 (1/2)
5.1 (5/27)
18.8 (5/18)

1.3

(1/20)

2.8 (1/20)

2.2 (1/22)

4.3

(1/12)

13.4 (1/24)
7.2 (1/2)

27.4
27.1
27.4
30.4

3.5
3.2
3.3
2.9

10.6
11.0
10.8
12.1

27.0
25.5

2.8

2.5

10.4
10.4

12

Table 8

SECURITY CREDIT
REGULATED MARGIN CREDIT EXTENDED BY
END OF PERIOD

OUTSTANDING

1977 - December
1978 - January
February
March
April
May
June
July
August
September
October
November
December

BROKERS ON 1
MARGIN
STOCK

BROKERS O N
CONVERTIBLE
BONDS

2

BANKS

3

UNREGULATED NONMARGIN
STOCK CREDIT
AT BANKS

2,568

9,740

250

873

9,590
9,780
9,920
10,260
10,660
11,090
11,190
11,740
12,400
12,090
11,000
10,830

246
242
246
248
245
242
247
243
225
216
209
205

2,565
851
2,544
877
2,544
855
2,560
914
series discontinued

130

4

-150
190
140
340
400
430
100
550
660
-310
-1,090
-170

-4
-4
4
2
-3
-3
5
-4
—18
-9
-7
-4

CHANGE IN OUTSTANDING

1977 - December
1978 - January
February
March
April
May
June
July
August
September
October
November
December

1

-36

-3
-22
-21
26
-22
16
-59
series discontinued

NOTES:
1
Margin account debt as reported by the New York Stock Exchange, excluding credit for subscription issues and convertible bonds.
2
3
4

New York Stock Exchange data.
June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting
sample, which accounted for 60 per cent of security credit outstanding at banks on June 30.
Nonmargin stocks are those not listed on a national securities exchange and not included on the Board of Governors of the Federal Reserve
System's list of OTC margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no
value.




4

#

#

#

#

#

#

#

#

#

#

Table 9

SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS
IN MILLIONS OF DOLLARS

SAVINGS & LOAN ASSOCIATIONS

MUTUAL SAVINGS BANKS
DATE

1974
1975
1976
1977

REGULAR DEPOSITS

NET
FLOW
2,165
11,070
12,670
10,647

1978-June
July
August
September
October
November .
December^

723
668
1,054
1,116
1,202
353
644

ANNUAL 3
GROWTH
RATE
2.3
11.3
11.6
8.9

1,304
341
260
1,378
615
275
1,425

1978-June
July
August
September
October
November .
December^-'

1

NET
NEW
MONEY
-2,822
4,757
5,275
2,874
-90
38
-75
-41
48
-59
-325

6.4
5.9
9.2
9.7
10.4
3.0
5.5

——

—

—
—

—
—

2

SHARE CAPITAL

NET
FLOW
16,006
42,769
50,169
50,963
NOT
6,656
3,074
2,312
6,433
2,645
2,157
5,895

4,675
3,846
4,578
5,757
3,510
4,399
3,803

NET
NEW
MONEY

ANNUAL 3
GROWTH
RATE
4,668
7.1
29,276
17.6
17.6
34,369
15.2.
32,004
SEASONALLY ADJUSTED
1,744
2,812
2,069
— —
1,606
2,534
— —
1,897
689

SEASONALLY ADJUSTED*/
— —
14.0
——
11.4
——
13.4
16.7
10.0
p-—
12.4
10.7

TOTAL

2

DEPOSITS

NET
FLOW
18,171
53,839
62,839
61,610
7,960
3,415
2,572
7,811
3,260
2,432
7,320

5,398
4,514
5,632
6,873
4,712
4,752
4,447

ANNUAL 3
GROWTH
RATE
5.6
15.8
15.9
13.5
——
——
——
——

—

12.1
10.0
12.3
14.9
10.1
10.1
9.4

NET
NEW
MONEY

2

1,846
34,033
39,644
34,783
1,654
2,850
1,994
1,565
2,582
1,838
364

__
mam mm
• M

——
mam

NOTES:
1
Regular deposits at mutual savings banks exclude items such as Christmas club and certain escrow accounts, which represent a very small part of total deposits.
2

New deposits net of both withdrawals and interest. Data for S&L's are for insured associations only, which represent 96 per cent of industry total resources.

3

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.

4

S e a s o n a l l y a d j u s t e d s e r i e s have been r e v i s e d due to r e c a l c u l a t i o n o f s e a s o n a l f a c t o r s .
Associati i of Mvfual Savings Banks and F e d e r a l Home Loan Bank Board.

SOURCE:
 N a t i o n a l


H.16

14
Table 10

MORTGAGE COMMITMENTS AT
SELECTED THRIFT INSTITUTIONS
BILLIONS OF DOLLARS, SEASONALLY ADJUSTED

OUTSTANDING COMMITMENTS
PERIOD

TOTAL

ALL SAVINGS
MUTUAL
& LOAN
SAVINGS BKS
ASSOCIATIONS (N Y. STATE)

NET CHANGE

TOTAL

ALL SAVINGS
MUTUAL
& LOAN
SAVINGS BKS
ASSOCIATIONS (N Y. STATE)

1972

25.3

20.3

5.0

7.48

6.28

1.20

1973

20.0

16.4

3.5

-5.31

-3.92

-1.39

1974

14.7

12.4

2.3

-5.20

-3.91

-1.29

1975

20.2

18.2

2.2

5.81

6.06

1976

27.8

25.0

2.8

7.46

6.80

.66

1977 - J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

27.8
28.5
29.7
30.4
30.8
32.1
32.8
34.0
35.0
37.2
38.2
38 . 3

25.0
25.5
26.5
27.2
27.5
28.3
29.0
30.1
30.9
32.7
33.5
33.7

2.8
3.0
3.2
3.2
3.3
3.8
3.8
3.9
4.1
4.5
4.7
4.6

.45
.66
1.20
.68
.47
1.32
.60
1.29
.97
2.23
1.05
.06

.38
.46
1.00
.68
.40
.79
.63
1.11
.80
1.86
.82
.16

.07
.20
.17

1978 - J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

38.0
37.3
36.9
36.5
36.2
36.1
36.0
36.4
36.7
38.8
39.1
38.2

%6
33.0
32.7
32.3
31.9
31.5
31.5
31.9
32.3
33.9
34.0
33.2

4.4
4.3
4.2
4.2
4.3
4.6
4.5
4.5
4.4
4.9
5.1
5.0

-.32
-.70
-.40
-.46
-.34
.02
-.11
.32
-.34
2.12
• 30
-.95

—. 08
—. 61
-.34
-.42
-•39
-.32
-.03
.36
• 42
1.63
.10
-.85

-

.25

—

-

-

.07
.53
.03
.18
.17
.37
.23
.10

.24
.09
.06
.04
.05
.34
— . 08
- .04
- .08
.49
.20
- .10

-

NOTES:
Based on data from Federal Home Loan Bank Board and Savings Banks Association of New York State. Both series include a minor amount of nonresidential commitments; S&L commitments also include loans in process. Net changes are derived directly from unrounded end of period outstanding
levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding.




,

1

15

T a b l e 11

NET NEW MONEY BORROWINGS
BY MAJOR HOUSING AGENCIES
IN MILLIONS OF DOLLARS

PERIOD

TOTAL
INCLUDING
SHORT-TERM
DISCOUNT
NOTES

INTERMEDIATE AND LONG-TERM I S S U E S
TOTAL

FHLB

FHLMC

FNMA

FNMA & FHLB
SHORT-TERM
DISCOUNT
NOTES 1

1977-Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

12
-862
289
344
532
605
531
347
195
247
466
1,078

188
-592
-354
746
297
203
553
301
-291
211
500
0

0
-200
0
-6
105
0
0
304
0
0
300
0

-189
-393
-4
0
200
3
-47
-3
9
11
200
0

-1
1
-350
752
—8
200
600
0
-300
200
0
0

-176
-270
643
-402
235
402
-22
46
486
-36
-34
1,078

1978-Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. ,
Dec . -

399
1,712
887
848
3,091
1,492
1,605
1,811
1,683
1,680
1,108
3,023

-12
1,388
-17
600
1,483
1,276
1,881
1,182
1,131
1,630
885
2,183

0
1,400
0
0
1,500
0
700
1,200
0
0
900
750

-12
-12
-17
0
-17
276
-19
—18
181
-70
-15
183

0
0
0
600
0
1,000
1,200
0
950
1,700
0
1,250

411
324
904
248
1,608
216
-276
629
552
50
223
840

1979-Jan.-/

650

0

0

0

0

650

NOTES:
Based on data from Treasury Survey of Ownership.
Sales of FHLB discount notes began in May 1974.



16

Table 12

NET CHANGE IN MORTGAGE HOLDINGS
IN MILLIONS OF DOLLARS

PERIOD

1970
1971
1972
1973
1974
1975
1976
1977

FINANCIAL INSTITUTIONS

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

21,930
41,406
57,587
58,372
42,739
43,497
62,783
96,814

17,020
39,018
55,561
55,072
36,517
38,658
64,903
95,924

COMMERCIAL
BANKS

MSB's

S & L's

2
INSURANCE FNMA-GNMA
COMPANIES
2,348
1,221
1,452
4,278
5,078
2,933
2,414
5,184

4,910
2,388
2,026
3,300
6,222
4,839
-2,120
890

3,019
412
1,600
3,409
1,700
344
4,837
553
2,600
4,856
486
2,600
5,021
569
3,500
5,660
642
3,700
3,991
674
3r200
4,721
636
3,700
4,294
2,800
516
4,265
500
3,000
4,184
594
3,200
3,502
2,200
Seasonally Adjusted

406
304
488
854
373
850
556
1,006
763
796
945

320
498
473
608
1,244
773
728
998
984
883
485

4,319
4,384
4,736
4,349
4,300
4,472
3,647
4,214
4,188
4,450
4,762
3,882

544
377
615
817
509
851
679
1,045
796
703
923

379
600
560
747
1,455
969
444
930
745
827
487

2,462
9,940
16,800
19,600
11,700
4,200
13,900
25,400

1,946
3,938
5,377
5,642
2,172
2,236
4,074
6,474

10,254
23,919
31,932
25,552
17,567
29,289
44,515
58,566

Not S e a s o n a l l y A d j u s t e d
1978 — J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

5,757
6,255
8,951
9,404
10,707
11,625
9,149
11,061
9,357
9,444
9,408

5,437
5,757
8,478
8,796
9,463
10,852
8,421
10,063
8,373
8,561
8,923

1978 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

7,816
8,104
9,050
8,710
10,172
10,037
8,505
10,147
8,968
9,609
10,150

7,437
7,504
8,490
7,963
8,717
9,068
8,061
9,217
8,223
8,782
9,663

2,002
2,228
2,552
2,315
3,345
3,291
3,100
3,373
2,701
3,149
3,340
2,401

572
515
587
482
563
454
635
585
538
480
638

NOTES:
1

Monthly data for commercial banks based on Federal Reserve estimates bench marked to Call Report data on real estate loans outstanding as available. Other data derived from mortgage debt outstanding as reported separately by National Assn. of Mutual Savings Banks, Federal Home Loan
Bank Board, Institute of Life Insurance and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the
Government National Mortgage Association. Data for mutual savings banks and for Life Insurance companies may differ somewhat from those derived from regular quarterly series because of minor conceptual differences for which adjustments are not made in the monthly series. Altogether,
these groups accounted for 8 3 per cent of the net increase estimated for all holders in 1974.

2

Beginning January 1972 data reflect activity in limited amount of conventional mortgages.




,

,

17

Table 13

NET INCREASE IN
MORTGAGE DEBT OUTSTANDING 1
IN BILLIONS OF DOLLARS, S E A S O N A L L Y ADJUSTED ANNUAL RATES

2
QUARTER

TOTAL

3

RESIDENTIAL
TOTAL

1- t o 4 FAMILY

MULTIFAMILY

COMMERCIAL

MULTFAMLY
&
COMMERCIAL

FARM

1972 - I
II
III
IV

67,9
73.9
77.2
88.8

49,8
53.9
58,6
64.1

38,5
40.7
47.7
48.4

11,3
13,2
11.0
15,7

14,7
16,5
14,9
21,1

26.0
29.6
25.9
36.8

3.5
3,5
3.7
3.6

1973 - I
II
III
IV

82.0
86.7
79.8
71.1

57.5
59,2
55.4
48.9

49,4
46,1
42.9
41.1

8,1
13,1
12,5
7.9

18,8
21,7
19,4
16.7

27,0
34,8
31.9
24,5

5.6
5,8
5.0
5.5

1974 - I
II
III
IV

71.1
69.6
53.6
47.7

50.4
45.9
34.1
30.4

40.8
39.0
27.4
26.1

9,5
7,0
6,7
4.3

17,2
18,8
13.7
11,4

26.7
25.7
20.3
15.7

3.6
4,0
5.8
5,9

1975 - I
II
III
IV

45.8
53.0
61.3
68.7

32,0
38.1
45.1
50.4

31.1
38.7
45.2
50.5

0.9
r-0.6
'-0.1
*-0 • 1

8,6
10,1
12,1
14,2

9.4
9,4
12,1
14,1

5.3
4,9
4.0
4,1

1976 - I
II
III
IV

80.9
74.5
93.1
99.6

62.5
55.0
72.7
78.9

61.0
55.2
68.9
76.5

1.5
-0.2
3.8
2.4

13.3
14.8
13.5
13.0

14.8
14.5
17.2
15.5

5.2
4.7
6.9
7.7

1977 - I
II
III
IV

108.5
133.8
140.1
153.6

85.9
110.0
113.7
119.4

81.6
101.8
106.2
110.2

4.2
8.3
7.5
9.2

14.0
14.5
17.8
25.6

18.2
22.8
25.3
34.8

8.6
9.2
8.6
8.7

1978 - I
II
III

133.7
145.3
152.5

105.4
114.0
110.9

96.2
104.8
99.8

9.2
9.2
11.1.

19.3
21.7
29.7

28.5
30.9
40.8

9.0
9.6
11.8

NOTES:
1

Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life
Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association,
Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of
property, where not available, and interpolations and extrapolations, where required, estimated mainly by Federal Reserve.

2

May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment.

3

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




\

Table 14

PRIVATE HOUSING PERMITS, STARTS,
COMPLETIONS, AND MOBILE HOME SHIPMENTS
IN THOUSANDS OF UNITS, SEASONALLY ADJUSTED ANNUAL RATES

PERMITS 1
PERIOD

TOTAL

1 —FAMILY

COMPLETIONS

STARTS
2 - O R MORE
FAMILY

TOTAL

2 - O R MORE
FAMILY

1—FAMILY

1969
1970
1971
1972
1973
1974
1975
1976
1977

1,324
1,352
1,925
2,219
1,820
1,074
939
1,297
1,677

626
647
906
1,033
882
644
676
894
1,125

698
705
1,018
1,186
937
431
264
403
552

1,407
1,434
2,052
2,357
2,045
1,338
1,160
1,538
1,987

811
813
1,151
1,309
1,132
888
892
1,162
1,451

656
621
901
1,048
914
450
268
376
375

1978 - J a n .
Feb .
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1,526
1,534
1,647
1,740
1,597
1,821
1,632
1,563
1,731
1,719
1,724
1,680

1,032
957
1,037
1,157
1,058
1,123
1,035
1,020
1,092
1,127
1,114
1,158

494
577
610
583
539
698
597
543
6 39
592
610
522

1,548
1,569
2,047
2,165
2,054
2,124
2,119
2,025
2,075
2,016
2,155
2,125

1,156
1,103
1,429
1,492
1,478
1,441
1,453
1,440
1 , 463
1,455
1,558
1,533

TOTAL

392
466
618
673
576
683
666
5 85
612
651
597
592

MOBILE

1 —FAMILY \2- OR MORE
HOME
SHIPMENTS
| FAMILY

1,399
1,418
1,706
1,972
2,014
1,692
1,297
1,362
1,652

392
617
692
828
840
760
430
336
398

413
401
497
576
567
329
216
246
277

1,759
1,696
1,821
1,943
1,854
1,890
1,943
1,967
1,971
1,845
1,812

!

808
802
1,014
1,143
1,174
932
867
1,026
1,254
1,300
1,233
1,363
1,515
1,426
1,344
1,289
1 , 364
1,456
1,410
1,324

459
463
458
428
428
546
654
603
525
435
488

324
265
285
252
258
263
232
283
272
300
312
308

NOTES:
Private building permits (for 14,000 areas with permit systems, excluding farm), starts, and completions are Census Bureau data. A dwelling unit is started when excavation begins. In the case of
a p a r t m e n t buildings, all units are considered started at t h a t time; however, all such units are considered completed when more than half of the units in the structure are ready for use. Private mobile
h o m e shipments are Mobile Home Manufacturers Association data converted to seasonally adjusted annual rate by Census Bureau.


Permit data for 1969 and 1970 based on 13,000 areas with permit systems
1

#
#
#
#
#

#

#

#

#

#

T a b l e 15

AVERAGE RATES AND YIELDS ON HOME MORTGAGES

EXISTING HOMES

NEW HOMES
PERIOD

SPREAD
BETWEEN
NEW A a a
RETURNS ON
NEW HOMES
UTILITY
CONVENTIONAL
BOND
AND HUD(FHA)
YIELD
NEW HOME
DISCOUNT
SPREAD
(PERCENTAGE MORTGAGES (IN PER CENT)
(BASIS
(BASIS
POINTS)
POINTS)
POINTS)

HUD(FHA) INSURED LOANS
SECONDARY MARKET

CONVENTIONAL LOANS
PRIMARY MARKET

RATE
(IN PER CENT)

1976

-

High
Low
High

1977

Low
1978

-

Jan.
Feb .

SPREAD
(BASIS
POINTS)

RATE
(IN PER CENT)

SPREAD
(BASIS
POINTS)

YIELD
(IN PER CENT)

9.05

9.10

95
10

9.06

8.90

91
5

8.25

8

4 .3
2 .0

9.10
8.80

99
52

9.20
8.85

98
63

9.11
8.40

73
22

4 7
1.7

9.15

NA

9.20

NA

9.11

NA

4.7

4

NA

9.25
9.30

54
47
53

NA
9.29
9.37

NA

NA

NA

46
45

4.1
4.7

8.71
8.83
8 .92

58

9.67

65

5 .0

NA
9.92
9.78

NA
84
98

NA
3.1
2.1

9.78

72

Mar.
Apr.

9.25
9.30
9.40

54
47
48

May

9.60

58

June
July
Aug.

9.75
9.80
9.80

59
72
100

8.95

9.45
9.60
9.75
9.80
9.80

59
72
100

59

65
- 4
40
4

1
3

9 .02

2.1

2

9.06

2

9.23

11
14

9.80

74

9.85

79

Oct.
Nov.

9.95

72

9.95

72

9.93

55

10.10
10.30

NA

10.15
10.30

NA
NA

10.16

9.99

NA
NA

3.6
4.8

-

2.1

NA

8.31
8.01

7
NA
-12
2

Sept.

Dec.

8.72
8.05

9 .16
9 .08
8.80

NA
NA

NOTES:
1
Gross yield spread is average mortgage return before deducting servicing costs, minus average yield on new issues of high-grade utility bonds with 5-year call protection.
Rates on conventional first mortgages (excluding additional fees and charges) are based on unweighted HUD (FHA) field office opinions on prevailing contract interest rates in the market areas
of the insuring offices, rounded to the nearest 5 basis points. For secondary market data, weighted HUD office opinions on the average bid price for HUD (FHA) loans with minimum downpayment, prepaid in 15 years, for immediate delivery, are used.




i

20
T a b l e 16

FNMA AUCTION RESULTS
HOME MORTGAGE COMMITMENTS
CONVENTIONAL

GOVERNMENT-UNDERWRITTEN
AMOUNT
(IN MILLIONS OF DOLLARS)

DATE OF
AUCTION

OFFERED

AVERAGE
YIELD

AMOUNT
(IN MILLIONS OF DOLLARS)
OFFERED

ACCEPTED

10.69(12/27)

AVERAGE
YIELD

ACCEPTED

717(5/15) 363(5/15)

10.92(12/27)

1011(1/9)

605(1/9)

Low

130(8/7)

80(8/7)

J u l y 10
24

503.3
253.4

327.4
144.1

10.02
10.00

169.8
146.2

90.5
88.4

10.17
10.21

Aug.

7
21

130.3
368.8

80.1
197.1

9.82
9.80

74.7
150.0

47.5
81.0

10.15
10.07

Sept. 5
18

351.2
366.7

154.7
181.2

9.78
9.79

199.4
285.3

126.3
157.4

10.02
10.01

2
16
30

682.4
425.4
857.0

278.6
176.2
377.6

9.91
9.98
10.20

395.5
336.1
425.2

166.9
148.8
179.9

10.10
10.18
10.31

Nov. 13
27

452.8
335.2

182.4
139.4

10.27
10.33

488.2
373.2

199.5
187.3

10.49
10.64

Dec. 11
27

283.4
343.6

144.4
175.2

10.40
10.60

262.2
155.2

141.5
79.4

10.77
10.92

8

211.0
93.9

101.1
54.3

10.67
10.73

71.2
42.3

36.0
22.1

11.02
11.13

1978 - High

Oct.

1979

Jan.

23

9.13(1/9)

75(8/7)

48(8/7)

9.28(1/9)

NOTES:
Average secondary market yields are gross before deduction of the fee of 38 basis points paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for Federal National
Mortgage Association (FNMA) commitment fees and FNMA stock purchase and holding requirements on 4-month commitments. Mortgage amounts
offered by bidders relate to total eligible bids received.




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