Full text of H.16 Capital Market Developments : February 28, 1972
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SOEiOEiiP"1 L 5.8 Cowlidtntiol (F.R.) am • six booths February 28 (S1TAL MARKET DEVELOPMENTS 1972 ~ i 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 TABLE 1: Yields, Volume and Reception CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 514 65 599 76 312 70 332 n.a. 75 1972 - Jan. 7 14 21 28 YIELDS MOODY'S SEASONED 1 NEW ISSUE Aaa 7.00 7.19 6.86 7.17 7.16 7.01 7.19 7.22 Feb. 4 11 18 25 7.22 7.30 7.10 7.11 7.25 7.29 7.28 7.26 285 620 540 223 77 80 68 70 n.a. Mar. 3 n.a. n.a. 400e n.a. n.a. WEEK ENDING: WEEK ENDING: 1972 - Jan. 7 14 21 28 YIELDS BOND BUYER MOODY'S SEASONED 20 SEASONED BOND INDEX 5.03 4.75 4.65 4.99 5.17 4.90 5.29 5.05 n.a. MUNICIPAL BOND MARKET VOLUME2 PER CENT 1 SOLD BY END 1 BONDS SCHEDULED GROSS OF WEEK | WITHIN 28 DAYS OFFERINGS 72 1,000 125 62 1,093 594 68 1,239 417 556 79 858 Feb. 4 11 18 25 5.10 5.00 5.00 4.95 5.35 5.27 5.24 5.28 214 667 380 459 Mar. 3 n.a. n. a. 453e 87 84 80 31 ' n.a. 1,098 1,080 1,504 1,560 n.a. 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: Set- footnotes to Table 3 TABLE 2: DetaiIs on Inventories DATE OFFFRED j AMOUNT (MIL. S) 2/15 2/15 2/24 2/24 2/23 2/23 OFFERED 75.0 175.0 25.0 25.0 40.0 50.0 DATE | RELEXSED 2/22 1972 - Jan Feb. CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK 1 !ORIGINAL RATING AND COUPON | YIELD CALL PROTECTION 1 ISSUER 5 yrs Aaa 6.50 pacific Tel & Tel .. 6 5/8 5 yrs Aaa 7.23 7 1/4 Pacific Tel & Tel 5 yrs A 7.52 7.50 Gen'l Tele of Wise 7 yrs 6.83 NR 6.75 First Nat'1 Bank of Ore 10 yrs NR 7.95 7.95 Am Credit 5 yrs Aa 7.35 7 3/8 No States Pwr n ESTIMATED PROPORTION SOLD 50% 50% 25% 75% 85% 25% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROCOUPON IN YIELD CALL PROT. ISSUER YIELD 10% A 5 yrs +7 7 5/8 7.50 Appal Pwr AMOUNT 28 4 11 18 25 INVENTORIES 1 MUNICIPALS BLUE LIST IN SYNDICATE 197 885 885 715 773r 797 96 147 134 168 CORPORATES IN SYNDICATE 121 123 147 133 194 No call protection. All figures in millions of dollars. Blue List is daily average for x-.eek ended Friday, except for latest week of three days ended Wednesday. All other figures are as of Friday. which is daily average TABLE 3: High Grade Bond Yields DATE NEW CORPORATE Aaa 1 MOODY'S SEASONED CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS 4 - High Low 8.85 (12/26) 6.90 (2/21) 7.84 (12/26) 6.55 (1/12) 6.97 (12/26) 5.96 (1/24) 6.90 (12/18) 4.82 (1/28) 1 - High " Low 9.30 (6/19) 7.68 (12/18) 8.60 (7/3) 7.48 (12/21) 7.55 (5/29) 6.17 (12/18) 7.12 (5/29) 5.33 (12/11) . - High Low 8.23 (5/12) 6.76 (1/29) 7.71 (8/13) 7.06 (2/12) 6.51 (6/18) 5.69 (3/23) 6.23 (6/24) 4.97 (10/21) : - Jan. 28 7.19 7.22 6.04 5.29 Feb. 4 11 18 25 7.22 7.30 7.10 7.11 7.25 7.29 7.28 7.26 6.09 6.10 6.05 6.02 5.35 5.27 5.24 5.28 1 New corporate issues, with call protection, adjusted (as described in footnote 1 of Table 1) to a Aaa basis. 2 Weekly average of daily figures. Average term of bonds included is 22-24 years. 3 Weekly average of daily figures. 4 Thursday figures. The average rating of the 20 bonds used in this index falls midway between the four top groups as classified by Moody's Investors Service; Note--Highs and lows are for individual series and may be on different dates for different scries. TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS CORPORATE PERIOD 1 STATE AND LOCAL 2 1972 1971 1970 i 1972 1971 1970 3,350e 3,115 3,000 6,075 2,636 1,802 3,539 ' ! l,70.0e 2,732 1,851 2,258 1,340 1,214 1,555 April May June 4,042 3,271 4,375 3,170 3,909 3,389 l 1,891 2,167 2,013 1,647 996 1,085 July August September 4,147 2,532 3,768 2,768 2,274 2;518 • 1,989 1,903 2,098 1,348 1,359 1,758 October November December 3,387 3,704 3,673 2,777 4,182 3,980 1,728 2,264 2,068 1,924 ' 1,748 2,190 12,190 11,688 10,447 10,764 7,977 10,468 8,560 11,939 6,841 6,081 5,990 6,060 4,109 3,728 1 4,465 ! 5,862 23,844 34)325 45,089 18,445 27,005 38,944 12,912 18,902 24,962 7,837 ' 12,302 18,164 January February March 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1 2 . ! ! 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 1 TOTAL GROSS PROCEEDS BY TYPE OF ISSUE COMMON BONDS AND MEMO: PUBLICLY PRIVATELY PFD. ISSUES INCLUDED MFG. OFFERED PLACED STOCK FOREIGN | CONVERTIBLE GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS1 - IV 11,938 7,827 1,421 2,690 226 737 3,169 3,406 1,,346 4,020 - I II III IV 12,190 11,688 10,447 10,764 8,369 6,546 4,725 5,135 1,516 1,758 1 641 2,,439 2,306 3,384 4,079 3,193 84 215 114 133 724 1,351 652 767 3,794 3, 130 2,202 2,,453 3,197 2,910 2,651 3,041 1,,606 896 2,,263 1.,053 3,594 4,753 3,331 4,164 - Dec. 3,979 2,436 834 709 159 165 1,,056 955 282 1,687 - Jan. Feb. Mar. 3,115 3,000 6,075 2,033 2,201 4,135 594 275 647 489 524 1,293 43 3 38 99 168 557 716 661 2 ,417 = 676 1,069 1,452 391 683 532 1,332 587 1,675 Apr. May June 4,042 3,271 4,375 2,116 2,148 2,282 507 491 760 1,419 633 1,332 116 47 52 384 255 712 1;,135 588 1:,206 1,267 588 1,055 273 405 218 1,367 1,489 1,897 July Aug. Sept. 4,147 2,532 3,768 1,331 1,428 1,966 619 416 606 2,196 687 1,196 72 34 8 199 160 293 582 474 1,146 732 849 1,070 1 ,622 359 282 1,210 850 1,271 Oct. Nov. Dec. 3,387 3,704 3,673 1,942 2,003 1,190 723 433 1,283 723 1,269 1,201 59 62 12 222 395 150 662 811 980 933 1,217 891 432 269 352 1,360 1,408 1,450 550 770 1,740 900 n. a. 240 500i 900 1,760 -Jan. e/ 3,560 Other issuers arc extractive, railroad and other transportation', real estate and finance, and commercial and other. Source: Securities and Exchange Commission. Quarterly supplements are available. \ TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY f Jan. 31, 1972 thru Feb. 25 1972 COUPON OFFER- MOODY'S RATH OR RATING ING NET INTERYIELD EST COST Corporate Pacific NW Bell Tel B.F. Saul Real Estate Inv. Tr G.Eo Credit Corp Niagara Mohawk Pwr Corp Southeastern Tel Co IDS Realty Trust Pa Pwr & Lt Co Texas Pwr & Light Texas Pwr & Lt Singer Credit Corp Singer Credit Corp Fla Pwr & Lt Co Central Hudson Gas & Elect Co Credithift Fin Corp Charter New York Corp First Banc Group of Ohio U.S. Nat'l Bank of Oregon Shell Oil Co Commercial Credit Co Commercial Credit Co Tri-South Mtg Inv Dean Witter & Co Pacific Tel & Tel Co Pacific Tel & Tel Southern Pacific Trans Co Northern Trust Co First Nat1l City Corp Globe-Union Inc. Appalachian Pwr Co Appalachian Pwr Co Akzona» Inc. Juke pwr Va- Pwr & Lt Notes 75.0 40.0 Conv deb Notes 75.0 Gen'l mtg 80.0 20.0 1st mtg Bene int 50.0 1st mtg 75.0 25.1 Pref 40.0 1st mtg 20.0 Debs , 30.0 Notes 66.8 Cm st 20.0 1st mtg 25.0 Debs 60.0 Debs 15.0 Debs 50.0 Debs 200.0 Debs 75.0 Notes 25.0 Notes Conv deb 25.0 28.8 Cm st 175.0 Debs 75.0 Notes 50.0 Eq tr Cap notes 30.0 100.0 Bonds 20.0 Bonds 50.0 Bonds 25.0 Pref st 60.0 Bonds 125.0 Cm stk 1 Pref st 45.0 1979 1991 1979 2002 1997 7.00 6-1/2 7.05 7.50 7.65 6.90 6.50 7.05 7.50 7.65 Aaa 2002 7-5/8 7.55 Aa 2002 1992 1979 7-1/2 7-7/8 7-1/8 7.40 7.95 7.125 Aaa 2002 7.67 8.00 1992 1979 • 7.00 7.00 1980 .7-3/4 2002 7.25 2002 7-3/4 1992 7.00 1979 7.00 1992 7.60 8.05 7.125 7.10 7.75 7.25 7.85 7.09 7.00 Aa --- A A — — — — — — — Aa — — — 2008 1979 1987 1980 1979 1997 2002 7.30 6.62 7.38 6.75 6.25 7.85 7.56 7.23 6.50 7.42 6.81 6.71 7.85 7.50 Aaa Aaa Aa 1997 7.50 7.50 A -- -- — -- , -- — — Baa A -— TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY Jan. 31, 1972 thru Feb. 25, 1972 COUPON OFFER- MOODY'S RATE OR RAT INC. ING NET INTERYIELD EST COST Corporate Minn Pwr & Lt Public Svc of Colo Jim Walter Corp Northern States Pwr American Credit Corp Gen'l Tele of Wise First National Bank of Oregon Pref stk Pref stk S.F debs Bonds Bonds 1st mtge Cap notes 17.3 25.0 50.0 50.0 50.0 25.0 25.0 —— -M -- — 7.88 7.38 7.95 7.50 6.75 7.90 7.35 7.95 7.52 6.83 Baa Aa -- 2002 1992 2002 1980 A T A B L E b: Large Loiki lotm Public Security Issues for New Capital (continm d) iQthei than U.S. Treasury) 1 ! A MDl 'NT (MILLIONS •JYPL i OF ..... i.. DOLLARS) — 1972 ! COUPON 1 RATF. OR • MTLK- MOODY'S MATURITY I NET INTERL.< : RATING j EST COST j Yll.l.D I — I State and Local L'Anse Creuse S/D, Mich. Fort Lauderdale, Fla. Fort Lauderdale, Fla. Texas Wtr Dev Bd Tucson Arizona Hartford, Conn. Hartford, Conn. Maine State Housing Auth. Ohio, State of Penna Higher Ed Fac Auth. Denver Sch Dist Co Alexandria, La. Michigan New York State Dorm Auth Port of New York North Carolina Fort Worth, Texas Alaska, State of Tallahassee, Fla, Shelby Co Health & Ed. Fac. Bd., Tenn. Shelby Co Health & Ed. Fac. Bd., Tenn. St. Paul, Minn. St. Paul, Minn. St. Paul, Minn. South Carolina Brunswick & Glynn Co Dev Auth, Ga. Brunswick & Glynn Co D,ev Auth, Ga. Huntington & Babylon, N.Y. CSD G.O. Rev. G.O. Rev. G.O. G.O. G.O. Rev. G.O. G.O. /G.O. Rev. G.O. Rev. Rev. G.O. G.O. & Rev. G.O. Elec Rev Rev. Rev. G.O. (G.O. G.O. IG.O. & Ref. 1 22.8 1973-2001 15. 9 1973-1997 8.4 1973-1997 25.0 1973-1992 12.0 1973-1992 10.0 1973-2012 15.0 1973-1992 19.7 1973-2002 60.0 1973-1992 21. 7 29.8 1973-1991 13.0 1973-1996 70.0 1974-1998 29.2 . 1974-2003 150.0 2007 45. 9 1972-1990 24.4 1973-1997 23.4 1973-1992 23,,0 1973-1992 5.58 5.08 5.06 4.68 4.67 5.06 4.70 5.50 5.93 4.47 5.21 4.57 5.92 5.91 4.34 —— —— -- 3.00-6.20 2.75-5.65 2.75-5.50 2.60-5.25 2.80-5.20 2.70-5.30 2.60-5.30 2.90-5.70 3.00-5.15 Baa A A Aaa A Aaa Aaa 2.80-4.90 2.90-5.45 2;90-5.00 3.25-6.20 5.90 2.30-4.75 4.50.5.60 2.75-5.50 2.76-5.20 Aa A Aa 9 .4 1972-2004 6.98 6.98 20 .7 2 .1 4 .5 5 .6 40 .0 1972-2004 1975-2002 1973-1982 1973-1982 1973-1987 6.98 4.91 3.82 3.82 4.13 3.10-5.15 2.60-5.25 2.60-5.25 2.50-4.50 1997 -- 5.96 Rev. 9 .0 Rev. G.O. 6 .0 10.1 1978-1992 1972-1998 __ -- 4.25-5.75 2.70-5.80 Aa A Aaa Aa Baa-1 A -- Aa -- Aa Aaa -__ -- TABLE b: Large Loncj term Public Security Issues for New Capital (continued) (Other than U.S. Treasury)1 Jan. 31, thru Feb. 25, 1972 COUPON RATE OR • il'TI'R- MOODY'S NET INTERi;.(. RATING EST COST Y1KL1) AMOUNT (MILLIONS OF DOLLARS) State and Local Alabama Public School Coll. Auth Douglas Co. Neb., Hosp Auth Douglas Co. Neb., Hosp Auth Gwinnett Co., Ga. Puerto Rico Highway Auth Puerto Rico Highway Auth Vermont Municipal Bd Bank Islip Central S/D N.J. Clark Co, Nev. New York State Housing Hartford Co Metro Dist, Conn. Hartford Co Metro Dist, Conn. New Jersey, State of Chicago Park Dist, 111. Northampton Co, Pa Com Coll. G.O. G.O. G.O. Rev. Rev. Rev. G.O. G.O. G.O. G.O. Rev. Rev. G.O. G.O. G.O. 27. 0 5. 7 16.,3 12. 0 21.,0 39,,0 63.,7 11.,2 13.,0 175..0 3..0 7..0 , 75..0 15..0 14.• o. 1986 1976-1986 2000 1974-2002 1973-1992 2002 1972-1991 1972-1998 1973-1992 1974-2004 1972-1981 1973-2002 1976-1997 1974-1987 1972-1988 4.56 4. 74 5.,90 6.,24 3..74 4..82 4.,80 4.56 -- 2.,80-4. 75 4.,20-5.,70 6.,25 3.,75-6.,25 Aa 2..90-5.,80 2.,50-5.,20 2.,70-6.,10 3..00-6.,20 3..30-6..38 2,.40-4,.10 2., 60-4, .70 3,.25-5..00 3,.10-4..90 2,.25-5..00 A A Aa Baa Baa A Aaa Aaa Aaa A-l Aa 5,.70 5,.07 5,.80 -- Other Federal Land Bank FHLB FHLB Bonds Debs Debs 425,.0 50,.0 50,.0 1975 1974 1976 5..70 .10 . 7, 7..38 Kights offering. Includes corporate and other security offerings of $15 million and over; State and local security offerings of $10 million and over. In case of State and local government securities, G.O. denotes general obligation; Hev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-lit., revenue bonds secured only by income from quas i -ut i 1 i t i es ; Kev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Kent., revenue bonds secured solely by lease payments. Includes foreign government and International Bank for Reconstruction and Development issues and non-quaranteed issues by Federal Agencies. 1?. 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 Vebruarv 25. 197? ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING State and Local Minneapolis St. Paul Metro Area Metro Council, Minn Rev. Anchorage, Alaska G.O. Metro Water Dist., So. Cal. Rev. Newark, N.J. G.O. Washington, State of G.O. Washington, State of Rev. Mass House Finance Agency Rev. Penna State Pub Sch Auth G.O. Nassau Co, N.Y 3.0. Triborough Bridge & Tunnel Auth Rev. N.Y. Chester City Sch Auth, Pa Rev Passaic Valley Swr Comm 3.0. New Britain, Conn 3.0. Dallas-Ft. Worth Reg Airport, Texas Rev. Texas, State of 3.0. Jersey City, N.J. 3.0. Jefferson Co. Sch. Dist. 3.0. Philadelphia Sch Dist, Pa. 3.0. Bonds HAA Lubbock, Tex 3.0. Baltimore, Md 3.0. New Orleans, La k ] San Gabriel Valley-Jlun Dist, Calif * Etef Los Angeles Department Elec Rev Ohio, State of 3.0. Hev. University of Texas Bonds Indianapolis, Ind Sacramento MUD, Cal 3.0. Los -Angeles Co Flood Control Dist, Calif IJ. 0. * 1 2 33.7 10.0 100.0 15.0 10.0 20.0 20.0 61.0 52.2 Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Mar. 28 28 29 29 29 29 75.0 29.8 23.7 12.8 Mar. Mar. Mar. Mar. 1 1 2 2 112.0 40.0 12.8 22.0 40.5 224.8 12.0 35.0 11.0 Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. 6 6 7 7 7 8 9 14 15 17.5 40.0 46.0 50.0 10.0 28.0 Mar. Mar. Mar. Mar. Mar. Mar. ' 15 15 16 16 22 22 27.0 Apr. 11 1 Included in table for first time. Includes corporate and other issues of $15 million and over; State and local Government issues of $10 million and over. Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) As February 23, 1972 APPROXIMATE DATE OF OFFERING Corporates Metropolitan Edison North Am Car Corp. Texas Eastern Transmission Union Commerce Corp Columbus & Southern Ohio Elect Atico Mtge Invesi-"VQ Cousins Mtge & Equity Inv. Indianapolis Pwr & Lt GMAC Toledo Edison NCNB Corp Crysler Financial Consolidated Edison of NY Duquesne Light Citizens & Southern Corp Jersey Central Pwr & Lt Arizona Pub Serv Co San Diego Gas & Elect . Public Svc of Okla Kansas Gas & Elect Kansas Gas & Elect Columbia Gas System New England Mutual Life Ins Co Duke Pwr New England Tel & Tel Co Atlantic City Elec Co Northern Indiana Pub Service Cc Laclede Gas Co Institutional Investors Trust Mississippi Pwr Co Public Service Elect & Gas Co Mobil Oil Corp Pref stk Eq tr 1st mtg Bonds Pref Debs Debs Bonds Debs Com stk Debs Debs Debs Pref stk Conv debs Pref Bonds Pref Bonds Bonds Pref Bonds Debs Bonds Notes 1st Mtg 1st mtg Bonds Conv debs 1st mtg 1st mtg Debs 35.0 15.0 60.0 25.0 16.0 25.0 30.0 40.0 200.0 18.0 30.0 60.0 150.0 35.0 15.0 25.0 60.0 15.0 30.0 25.0 15.0 . 50.0 50.0 100.0 100.0 20.0 50.0 20.0 30.0 25.0 125.0 300.0 Feb. Feb. Feb. Feb. Feb. Feb. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Apr. Apr. INDEF 28 28 29 29 1 1 1 2 6 7 8 9 13 13 14 14 14 15 15 15 15 16 22 27 28 29 4 4 1/, STOCK PRICES AND VOLUME STOCK PRICES 1 NYSE INDEX 3 ' 1969 - High Low D J . INDUSTRIALS TRADING VOLUME 2 AMEX 4 50.32 (5/14) 968.85 (5/14) 32.91 (1/13) 49.31 (7/29) 769.93 (12/17) 25.02 (7/29) 16.5 (3/29) 8.6 (8/29) 8.0 (1/31) 3.6 (11/21) 1970 High Low 52.36 (1/5) 37.69 (5/26 842.00 (12/29) 27.02 (1/8) 631.16 (5/26) 19.36 (5/27) 18.5 (12/4) 7.8 (8/14) 7.1 (1/2) 1.8 (8/14) 1971 High Low 57.76 (4/28) 950.82 (4/28) 26.68 (4/28) 48.73 (1/4) 797.97 (11/23) 22.72 (1/4) 22.1 (2/12) 11.0 (8/13) 6.7 (2/12) 2.7 (8/13) 1972 Jan. Feb. 7 14 21 28 57.21 57.22 57.39 57.78 910.37 906.68 907.44 906.38 26.14 26.53 26.71 27.03 17.5 17.1 19.0 18.7 5.3 5.9 6.1 6.1 4 58.26 58.33 58.48 58.95 906.68 917.59 917.52 922.79 27.38 27.47 27.57 27.78 19.9 19.1 18.6 16.9 7.1 6.3 11 18 25 1. 6.0 6.0 Figures other than highs and lows arc Fridays only. Highs and lows are for the year and z re not necessarily for Fridays. NYSE is the New York Stock Exchange; AMEX is the American "Stock Exchange. Volume figures are daily averaged for the entire week, (millions of shares). Trading is normally conducted for 5.-1/2 hours per day and 5 days per week, or 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. 27-1/2 hours per week. periods, shown below: Hours/ Week 15 I'ABLE 9: Security Credit END OF PERIOD Outstanding: CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 [ BANKS-"]"" TOTAL T I ET • CREDII CUSTOMERS' CUSTOMERS' ET! EXTENDED BY NET DEBIT | FREE CRCL'l L j BROKERS AND BALANCES j BALANCES' [__ DEALERS 3 4,000 4,090 4,300 4,530 4,620 4,720 4,790 4,850 4,930 4,950 4,910 5,400 2,300 2,330 2,360 2,340 2,340 2,390 2,420 2,430 2,430 2,410 2,400 2,440 6,300 6,420 6,660 6,870 6,960 7,110 7,210 7,280 7,360 7,360 7,310 7,840 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 2,452 2,743 2,798 2,660 2,550 2,440 2,210 2,200 2,100 2,160 2,170 2,220 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 5,700 2,490 8,190 (4) 2,488 (4) 1971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. -30 90 210 230 90 100 70 60 80 20 -40 490 -30 30 30 -60 1972 - Jan. 300 1971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. (4) Wr Change in Outstanding: 40 -50 530 291 291 55 -138 -110 110 230 -10 100 60 10 50 50 350 268 -20 50 30 10 -20 -10 120 240 210 90 150 100 70 80 Margin debt, as reported by the New York Stock Exchange. Although margin deb until March 1968 included loans secured by U.S. governments, the amount of su loans included is thought to have been small. "Bank loans to others than brokers and dealers for purchasing or car? s. v. rities other than U.S. governments." The difference between customers' net debit balances and customor.,' no' .roe c dit balances, this figure represents the net credit extended by brokers and dealers to the nonfinancial public. NOTE: With the exception of bank loan data, figures are supplied by the N w Stock Exchange and are end of month data. Bank loans are for weekly report:-';! large commercial banks. Broker data includes loans for regulated s e c u r : t • : data includes loans for the purpose of purchasing or carrying .my security, l e t l i e regulated or not. Series discontinued. Changes in series. TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS REGULAR DEPOSITS 3 NET ANNUAL NEW NET GROWTH MONEY2 1 FLOW \ RATE \ SAVINGS & LOAN ASSOCIATIONS SHARE CAPITAL NET ANNUAL NEW NET GROWTH MONEY 2 1 FLOW RATE TOTAL DEPOSITS 1 ANNUAL NET GROWTH FLOW RATE 1 XI : :T NEW MONEY 2 Not Seasonally Ad Justed 1969 1970 1971 £/ 2,549 4,517 9,512 1970 ~ November December January 497 1,218 774 1971 - November j>/ December g/ 1972 - January 631 1,180 850 1971 - July August September October November 2/ December 2/ 629 539 683 599 659 807 9.8 8.4 10.5 9.1 10.0 12.1 1972 - January e/ 942 14.0 4.0 6.8 13.5 —— --- -763 936 5,663 4,068 10,965 28,251 388 376 637 1,087 2,773 2,609 512 310 n.a. 3.1 8.1 19.4 -1,003 5,295 20,664 6,617 15,482 37,763 __ 1,044 % 1,161 2,476 1,584 3,991 3,383 2,193 4,315 3,550 -- 1,562 1,484 -— 3,135 1,180 — — 2,700 n.a. Seasonally Adjusted —— 2,687 19.9 — *» 1,529 11.2 —2,125 15.4 —— 2,071 14.8 — 1,710 12.1 2,052 14.3 -- 3,316 2,068 2,808 2,670 2,369 2,859 16.7 10.3 13.8 13.0 11.4 13.3 - — 3,552 4,494 21.2 — -—— —— —— 24.5 — 3.4 7.7 17.5 -- -1,766 6,231 26,327 1,432 1,537 3,113 1,996 1,490 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. TABLE 11: Mortgage Commitments at Selected Thrift Institutions DATE TOTAL OUTSTANDING COMMITMENTS 1 ALL MUTUAL | SAVINGS , TOTAL SAVINGS & LOAN BANKS (N.Y. STATE) ASSOCIATIONS 1 NET CHANCE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars, Se asonally Adjusted)— 970 - Dec. 10.1 8.1 2.0 .51 .28 .23 971 - Jan. r/ Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 10.5 11.3 12.6 13.7 14.6 15.9 16.2 16.3 16.4 16.3 16.6 8.4 9.0 10.1 11.0 11.6 12.8 13.1 13.2 13.2 13.1 13.2 2.1 2.3 2.5 2.7 3.0 3.1 3.1 3.1 3.2 3.3 3.4 .14 .99 1.89 1.69 1.10 1.39 ,21 -.23 -.49 -.16 .03 .14 .79 1.60 1.32 .73 1.35 .23 -.18 -.55 -.20 -.09 .00 .20 .29 .37 .37 .04 -.02 -.05 .06 .04 .12 16.6 13.1 3.6 -.34 -.41 .07 Dec. Based on data from Federal Home Loan Bank Board and Savings Banks Associations of New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. Net changes are derived directly from unrounded outstandings levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. 18 TABLE 12: Net Change in Mortgage Holdings 1 I | TOTAL 1 INCLUDING | FNMA-GNMA DATE 1968 1969 1970 1971 1 ' FINANCIAL INSTITUTIONS MUTUAL SAVINGS & TOTAL 1 COMMERCIAL SAVINGS LOAN BANKS BANKS ASSOC. 1 Not Seasonally Adjusted LIFE INSURANCE COMPANIES FNMA-GNMA 23,796 23,867 21,945 21,288 19,492 17,035 6,677 5,404 2,462 2,798 2,533 1,956 9 ,344 9 ,572 10 ,254 2,469 1,983 2,363 2,508 4,375 4,910 1970 - Oct. Nov. ^ Dec. 2,193 2,005 2,785 1,826 1,752 2,637 294 280 200 162 183 302 1 ,175 1,171 1 ,653 193 118 482 367 253 148 1971 - Oct. Nov. Dec. 3,731 3,593 3,275 3,246 n.a. 900 800 700 331 473 n. a. 1 ,979 1 ,941 2.,335 65 39 693 456 347 1970 - Oct. Nov. Dec. 2,115 2,054 2,513 1,812 1,845 2,412 277 232 325 156 175 230 15, 1 7 3 , 1,,285 1,,675 206 153 182 303 209 101 2,033 2,184 3,005 3,057 3,300 4,136 4,186 4,168 3,924 3,657 3,647 n. a. 2,043 2,219 2,983 3,113 3,260 3,935 3,878 3,656 3,458 3,267 3,345 n.a. 394 475 690 685 864 1,219 977 901 902 884 752 826 200 217 401 293 318 . 386 374 400 306 329 465 n.a. 1,,348 1,426 1, 801 2 , 082 2 , 036 2 , 309 2 , 455 2 , 252 2 , 122 1, 977 2 , 058 2 , 354 101 101 91 53 42 21 72 130 128 77 77 378 -10 -35 22 -56 40 201 308 512 466 390 302 n.a. Seasonally Adjusted 1971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1 1 | | ' -J Monthly data for commercial banks based on Federal.Reserve estimates benchmarked to Call Report data on real estate loans outstanding as available. Other data derived from mortgage debt outstanding as reported separately by National Assn. of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance and, through August 1968, the Federal National Mortgage Asscciation, 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 87 per cent of the net increase estimated for all holders in 1970 IS TABLE 13: Net Increases in Mortgage D^Outstanding Billions of dollars, S M R 1- to 4- MULTIFAMILY FAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 3.3 3.4 3.8 3.8 3.9 5.0 4.9 4.7 7.2 8.4 8.8 8.5 1.8 1.8 2.5 2.8 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 23.6 21.5 19.0 18.2 19.2 16.8 14.4 13.0 4.4 4.7 4.7 5.3 6.1 5.4 5.4 5.2 10.5 10.1 10.0 10.5 2.2 2.2 1.7 1.4 20.6 22.9 29.1 31.3 14.2 16.9 21.8 22.5 9.1 11.5 15.5 16.0 5.1 5.4 6.3 6.5 4.8 4.6 5.2 6.7 9.9 9.9 11.5 13.2 1.5 1.5 2.1 2.2 37.1 47.8 53.7 52.1 26.6 36.1 40.6 40.4 18.5 26.4 30.7 31.0 8.1 9.7 9.9 9.5 8_3 9.4 10.8 9.3 16.3 19.1 20.7 18.7 2.2 2.3 2.3 2.4 TOTAL RESIDENTIAL3 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 I II III IV 28.1 26.4 25.8 29.4 19.4 18.2 17:4 20.2 I II III IV 31.8 29.1 26.2 24.9 I It: III IV" I II nip Hp QUARTER 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 combined. TABLE 14: FNMA Weekly "Auction" Results WEEK ENDED Oct. Nov. Dec. Jan. Feb. COMMITMENTS IN $ MILLIONS ACCEPTED 1-YEARH 6TOTAL TOTAL 3-4 OFFERED mo. 3/ MONTH & OVER 4 18 365.1 219.8 194.8 103.6 194.6i 103.6 -- -- 1 15 29 126.0 145.3 210.6 56.4 102.0 101.1 56.4 102.0 101.1 -- 13 27 232.5 222.7 70.2 148.1 70.2 148.:L 10 24 136.9 103.6 72.9 54.9 72/9 54.'9 __ 7 88.7 63..9 -- 63.9 ---- -— -- __ -- -- -— IMPLICIT YIELD2(per cent) 3-4 , 1 -YEAR 1 6months & OVER MONTH - 3/ 7.85 7.83 — • -- -- 7.77 7.70 7.66 —— -- --- -- 7.62 7.62 — -- 7.61 7.61 -— —~ — 7.61 " " Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments. 1. For "proposed construction" of new homes only. 2. Average secondary market yield after allowance for commitment fee and required purchase and holding of FNMA stock, assuming prepayment of 15 years for 30-year Government-underwritten mortgages. Yields shown are gross, before deduction of 38 basis points fee paid by investors to servicers. 3. Short-term commitments converted from a 3 to a 4 month basis beginning October 18, 1971. 21 TABLE 15: Private Housing Starts and Permits r DATE . - Jan. Feb. Mar. Apr. May June July Aug. Sept, Oct. r/ Nov. £/ Dec. 1 / - Jan. £/ 1 2 STARTS SEASONALLY ADJUSTED ANNUAL RATE TOTAL |1-FAMILY 2 OR MORE 1 n.a. n.a. i 1 ,810 n.a. n.a. 1,794 j n.a. n.a. 1.,938 n.a. n.a. 1 ,951 n.a. 2,,046 n. a. n.a. n.a. 2.,008 n.a. n.a. 2j,091 2,,219 n.a. n.a. n.a. n.a. 2,,029 n.a. n. a. 2,,038 1,242 985 2, ,228 2, 433 1,341 1,092 2, 549 1,448 1,101 BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE)2 TOTAL UNADJUSTED 1 TYPE OF FINANCING FHA VA | OTHER 110,.6 102..2 167..9 201.,1 198..5 193.,8 194.,3 204. 5 173. 8 179. 7 176. 4 154. 0 1 32 .3 27.3 33 .5 44,.6 40,.7 46.,1 42.,9 45.,8 48.,3 38.,5 47. 2 85. 4 4,.6 4,.7 6,.9 8.,5 8,.4 9.,3 9..2 9.,4 8.,7 8. 1 9. 1 7.4 73.7 70.2 127.6 148.0 149.4 138.4 141.1 147.0 116.8 133.1 115.9 56.8 1 ,635 1 ,563 1 ,627 1,,638 1 ;,927 1,,849 2,,052 2,,006 1,,900 2,,173 1,,952 2,,292 153. 7 37. 4 7.5 198.6 2,,186 | 1 Total starts are Census estimates including farm for both permit-issuing and noi.-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 to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field office receives the first compliance inspection report, which is made before footings are poured in some cases but normally after the foundations have been completed. Other starts are derived as a residual, although total and FHA and VA starts are not strictly comparable in concept or timing;,,other starts include both units financed by conventional mortgages and units without mortgages. Building permits before January 1963 are Census estimates for about 10,000 areas identified as having a local building permit system in 1959. Estimates beginning January 1963 are for approximately 12,000 and beginning January 1967 13,000, or all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per month, as well as other differences in timing and coverage. TABLE 16: Mortgage and Bond Yields DATE 1 ' ; ™ , | CONVENSPREAD BEMORTGAGES l ' TIONAL TWEEN YIELDS ON CONV. & 1 MORTFHA MORT1 GAGES 30-year GAGES 5 1 | NEW 1 Aaa CORPORATE | BONDS 1 4 SPREAD BETWEEN " YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 6 1969 - High Low 8 .62 7 .99 8 .35 7 .55 -.13 -.40 8 .75 6 .91 1.08 -.13 1970 - High Low 9 .29 8 .40 8 .60 8..30 -.10 -.74 9 .11 7 .80 .99 .01 1971 - High Low 7..97 7,.32. 7..95 7.,55 .28 -.19 8..01 7.,24 .50 -.36 1971 - July Aug. Sept. 7..97 7.,92 7.84 7.,80 7.85 7.85 -.17 -.07 .01 7.,96 7. 65 7.44 .01 .27 .40 7. 75 7. 62 7.59 7.80 7. 75 7. 70 .05 .13 . 11 7.29 7. 19 7.09 .46 .43 .50 Oct. Nov. Dec. 1972 - Jan. | 7.49 7. 60 .11 7.07 .42 1 Neither mortgage nor bond yields include allowance for servicing costs which arcmuch higher for mortgages than for bonds. Generally, bonds pay interest semi annually; .nortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the table. 2 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 30-year mortgages with minimum downpaymertts, and weighted by probable volume of tansactions. Yields computed by FHA, assuming prepayment period of 15 years for 30-year mortgages. 3 Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities. 4 Sere note for. Table 1. 5 Yield spread equals conventional mortgage rates less FHA secondary market yield. 6 Yield spread equals FHA secondary market yield less new Aaa corporate bond yield. 23 TABLE 17: Conventional Mortgage Terms DATE 1 CON- FEES & TRACT CHARGES EFFEC- MATURITY 1 (YKARS) (PER RATE TIVE CENT) RATE (PER CENT) 3 2 EXISTING HOMES LOAN/ CON- FEES & LOAN/ TRACT CHARGES EFFEC- MATU- PRICK PRICE LOAN (PER RATE RATIO AMT. TIVE RITY RATIO CENT) RATE (YEARS) (PER (PER ($000) (PER CENT) CENT) CENT) 2 3 4 LOAN AMT. ($ooo: 4 1971 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 8,.03 7,>74 7..52 7,.37 7,,36 7.,38 7,,51 7.,60 7.,67 7.,68 7. 65 7. 62 0 .92 1.00 0 .83 0,.73 0,.71 0,.74 0..90 0,.84 0,,97 0..97 0.,87 0.,93 8,.18 7,,91 7,. 66 7,,49 7..47 7,,50 7.,66 7.,74 7. 83 7. 84 7. 79 7. 77 25 .8 26,.2 25,.9 26,.3 26,. 1 26.,3 26..3 26,,2 25.,8 26.,4 26. 7 26. 6 73 .3 73 .9 73 o 7 73 ,6 74 .0 73 .7 74,.5 73,,9 75,.3 75,.5 75.,4 74.,5 26.4 26.2 26.0 26.2 26.7 27.2 27.1 26.5 25.9 26.3 27.3 26.5 7 .94 7,.67 7,.47 7.,34 7,,33 7,,38 7.,50 7.,58 7.,63 7.,62 7. 56 7„ 51 0,.82 0,.79 0,.77 0.,75 0..71 0.,74 0.,75 0,.76 0..78 0.,79 0. 79 0. 78 8.08 7.80 7.60 7.47 7.45 7.50 7.63 7.71 7.76 7.75 7.69 7.64 23 .5 24 .0 24,.1 24..2 24.,0 24..3 24.,2 24.,5 24,,2 24.,1 24.,3 24. 6 7. 62 0. 91 7. 77 26. 5 75..3 27.8 7. 46 0. 76 7.59 24.5 72.,5 73. 1 73. 5 73. 6 73. 2 73. 9 74. 5 74. 2 74. 5 74. 2 74. 6 74. 6 22.0 22.5 23.0 23.1 23.3 28.3 23.2 23.5 22.5 22.9 23.2 23.9 1972 Jan. 74.6 Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to home-builders; and permanent loans which are coupled with construction loans to owncrbuildors. 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-jn the case of new home mortgage rates--in Table 16. Fees and charges--expressed as a percentage of the principal mortgage amount — include loan commissions, fees, discounts, and other charges which provide added income to the lender and are paid by the borrower. They exclude any closing costs related solely to transfer of property ownership. 3 Includes fees & charges amortized over a 10 year period in addition to the contract interest rate. Derived by FRB. 23.
@FedFRASER