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Capital
Market
Developments
X
**>

February 5, 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

#

Index

S U B S C R I P T I O N RATES:
Weekly $ 1 5 . 0 0 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

TABLES
1 - 6

SECURITY VOLUME AND YIELDS

7, 8

STOCK MARKET AND SECURITY
CREDIT

9-16

MORTGAGE MARKET

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 f o r m
collectible at par in U.S. Currency.




SYMBOLS
e

ESTIMATE

p

PRELIMINARY

r

REVISED

n.a.

NOT AVAILABLE
DATA DO NOT EXIST

Table 1

YIELDS, VOLUME AND RECEPTION
CORPORATE BOND MARKET
VOLUME

YIELDS
WEEK ENDING

19 7 8-Dec

1
8
15
22
29

1979-Jan.

5
12
19
26

Feb.

2

3
GROSS
OFFERINGS
( $ MILLIONS)

PER CENT
SOLD BY END
OF WEEK

NEW ISSUES 4
IN SYNDICATE
( $ MILLIONS)

NEW ISSUE 1
A a a UTILITY

RECENTLY
OFFERED
Aaa UTILITY

9.27
9.28
9.29

9.28
9.31
9.35
9.54
9.51

388
455
560
5
0

92
86
75
100

30
64
140
0

9.51
9.55
9.57
9.45

10
0
530
187

100

0

97
100

18
0

9.41p

663

100

0

9.54

2

——

MUNICIPAL BOND MARKET
VOLUME

YIELDS
WEEK ENDING

MOODY'S
NEW ISSUE
Aaa

BOND BUYER
20-BGND
INDEX

3
GROSS
OFFERINGS
( $ MILLIONS)

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

5.70

6.22

393

81

115

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.

4

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.




Table 2

HIGH GRADE BOND YIELDS
NEW I S S U E
A a a UTILITY

DATE

1

RECENTLY OFFERED
A a a UTILITY

2

MOODY'S S E A S O N E D
CORPORATE A a a

3

U.S. GOVT. 20-YEAR
C O N S T A N T MATURITY

4

B O N D BUYER
2 0 - B O N D INDEX

1974 - High
Low

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

10.52 ( 1 0 / 1 1 )
8.13 (1/4)

9 . 3 9 (10/11)
7.73 (1/4)

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

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

1975 - High
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 ( 1 0 / 3 )
6.27 (2/13)

1976 - High
Low

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

9.10 (1/2)
7.84 ( 1 2 / 3 1 )

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 - High
Low

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

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

8 . 2 8 (12/30)
7.88 ( 1 / 7 )

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

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

1978 - High
Low

9.29 (12/15)
8.60 (3/24)

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

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

9.00 (12/22)
8.02 (1/6)

6.67 (12/22)
5.58 (3/17)

1978 - October
November
December

9.17
9.27
9.28

9.13
9.27
9.41

8.89
9.03
9.16

8.69
8.75
8.90

6.13
6.19
6.51

9.51
9.55
9.57
9.45r

9.26
9.26
9.28
9.24r

8.99
9.01
9.03
8.95r

6.58
6.50
6.48
6.30

9.41p

9.18p

8.90p

6.22

1979 - Jan.

Feb.

5
12
19
26

— —
—

W

9.54
—

2

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

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

5

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

G R O S S PROCEEDS
CORPORATE

PERIOD

STATE AND LOCAL

1978

February
March
April
May
June
July
August
September
October
November
December

Q1
02
03
04
1st Half
3 Qtrs.
Year

1976

1978

1977

1976

3,013
2,657
4,442

4,362
2,792
5,578

3,381
3,863
6,632

3,305
2,751
4,829

3,402
3,442
4,063

2,451
2,885
3,365

3,285
4,035
5,215

3,998
3,797
5,660

3,507
4,186
6,439

3,824
5,497
4,355

3,409
4,566
5,786

2,218
3,575
3,115

4,226
3,311
3,832

4,289
3,469
4,177

3,216
3,357
4,817

3,909
6,388
2,289

3,113
4,118
4,013

2,734
2,821
2,814

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

4,221
5,331
6,531

4,511
3,074
6,503

3,125
4,075
3,600e

3,807
3,332
3,646

. 3,524
3,336
2,342

10,112
12,535
11,369
11,lOOe

January

1977

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

13,876
14,132
11,390
14,088

10,885
13,676
12,586
10,800e

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

8,701
8,908
8,369
9,202

22,647
34,016
45,116

26,187
38,122
54,205

28,008
39,398
53,488

24,561
37,147
47,947e

24,668
35,912
46,697

17,609
25,978
35,180

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

G R O S S PROCEEDS BY TYPE OF ISSUER

G R O S S PROCEEDS BY TYPE OF ISSUE
PERIOD

BONDS

COMMON
AND
PRIVATELY
PREFERRED
PLACED
STOCK

MEMO
MANUFACTURING

PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS

TOTAL

PUBLICLY
OFFERED

FOREIGN

CONVERTIBLE

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

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

3,527
4,975
3,506
5,999

2,707
2,874
2,214
4,217

268
346
272
275

6
108
495
39

3,031
3,440
3,250
4,054

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

1,415
1,059
644
1,320

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

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 - January
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

1977 - I
II
III
IV

1978 -

I
II
III

ISSUES INCLUDED

NOTES:
1

Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other.

Source: Securities and Exchange Commission.




— —

349
353
552
215

1

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 through F e b r u a r y 2, 1979

ISSUER

CORPORATE

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON RATE

OFFERING
YIELD

MOODY'S/S&P'S
RATINGS

Houston L i g h t i n g & Power Co.
Citicorp
B e n e f i c i a l Corp.

Pfd. s t k .
Notes **
Notes

500.0
150.0

2004
1985

9.04
11.05
9.40

9.04
11.05
9.40

Aa/AA
Aaa/AAA
Aa/AA

OTHER
Hyro-Quebec

Debt.

200.0

2009

10.00

10.00

Aa/AA

NOTES:
•
1

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

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




1

00

Table 5B

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

1

January 29 t h r o u g h . F e b r u a r y 2, 1979
ISSUER

TYPE

AMOUNT
(MILLIONS OF
DOLLARS)

MATURITY

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.
C h a r l e s t o n Co., S.C.
L o u i s i a n a , S t a t e of
I s l i p , N.Y.
C h a r l o t t e , N.C.
Syracuse, 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.

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

16.6
43.4
9.5
12.9
91.8
10.3
10.6
15.5
117.5
4.9
5.2

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.

*

G r e a t e r than 12 months.




1980-2004
1980-2009
1983-1993
2008
1980-1999
1980-1999
1981-1999
1979-1993
1981-2008
1982-1996
2004

7.70
7.77
5.51
5.95
5.33
—

5.86
7.16
7.16

OFFERING
YIELD

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

MOODY S / S & P ' S
RATINGS

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

T a b l e 6A

FORTHCOMING INTERMEDIATE AND LONG-TERM
PUBLIC SECURITY OFFERINGS
OTHER THAN U.S. TREASURY
As of February 2, 1979

1

TYPE

AMOUNT
(IN MILLIONS
OF DOLLARS)

APPROXIMATE
DATE OF OFFERING

Texas Power & L i g h t Co.
Southern Railway Co.
Texas Power & L i g h t Co.
Puget Sound Power & L i g h t Co.
Houston I n d u s t r i e s
P a c i f i c T e l . & T e l e . Co.
Commonwealth Edison Co.
*Missouri P a c i f i c R a i l r o a d Co.
Ohio Edison 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.
Georgia Power Co.
Georgia Power Co.
P a c i f i c Northwest B e l l T e l e . Co.
Louisiana Power & L i g h t Co.
P o r t l a n d General 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.
*Federal Express Corp.
Aristar Inc.
M o r t o n ' s Shoe Co.
El Paso E l e c t r i c Co.
Duke Power Co.
^Southwestern B e l l T e l . Co.
^ 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

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

100.0
24.0
30.0
50.0
60.0
300.0
184.6
19.4
108.0
100.0
100.0
100.0
50.0
170.0
35.0
60.0
250.0
20.0
25.0
15.0
30.0
110.0
450.0
100.0
75.0

6
Feb.
Feb.
6
Feb.
6
Feb.
6
Feb.
7
Feb.
7
8
Feb.
Feb. 14
Feb. 14
Feb. 20
Feb. 21
Feb. 21
Feb. . 21
Feb. 21
Feb. 22
Feb. 27
Feb. 27
Feb.
Feb.
Feb.
6
Mar.
Mar. 14
Mar. 20
Mar. 21
Mar. 22

OTHER
*European Investment Bank
*European Investment Bank
* O n t a r i o , Province of

Bonds
Bonds
Bonds

100.0
150.0
300.0

Feb.
Feb.
Feb.

ISSUER
CORPORATE

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

10
Table 6B

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

1

As of February 2, 1979

ISSUER

TYPE

AMOUNT
(IN MILLIONS
OF DOLLARS)

APPROXIMATE
DATE OF OFFERING

STATE & LOCAL

San Bernardino Redev. Agy., C a l i f .
Texas, S t a t e of
* P l e a s a n t s Co., W. Va.
South C a r o l i n a , S t a t e of
*Iowa Housing F i n . Auth.
*Kansas, S t a t e of
Washington P u b l i c Power Supply Sys
New York, S t a t e of
*Dade Co., F l a .
A r l i n g t o n I n d e p . Sch. D i s t . , Texas
J a c k s o n v i l l e Elec. Auth., Fla.
*Hawaii, S t a t e of
* I l l i n o i s , S t a t e of
Milwaukee C o . , Wise.
Howell Pub. Sch. D i s t . , Mich.
^Connecticut, S t a t e of
Redwood C i t y Gen. Imp. D i s t . ,
Calif.
*South Dakota Hsg. Dev. Auth.
Kentucky Hsg. Corp.
Municipal A s s t . Corp. N.Y.C.
New York C i t y Educ. C o n s t r u c t i o n
Fund
Alaska Hsg. Finance Corp.
*Delaware S t a t e Hsg. Auth.
*0hio, S t a t e of
*Orange C i t y Mun. Water D i s t . ,
Calif.

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

34.8
35.0
25.0
22.2
100.0
40.0
175.0
133.0
61.6
16.0
48.0
75.0
150.0
47.7
21.0
125.0

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

5
5
6
6
8
14
14
14
15
15
20
22
22
27
27
27

G#0.
Rev.
Rev.
Rev.

11.8
150.0
60.0
106.0

Feb.
Feb.
Feb.
Feb.

27
28

Rev.
Rev.
Rev.
G.O.

90.0
72.0
23.0
50.0

Feb.
Feb.
Mar.
Mar.

1
1

Rev.

90.0

Mar.

7

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
1

STOCK PRICES

DATE
NYSE INDEX

3

|

BJ INDUSTRIALS

AMEX

4

2

TRADING VOLUME

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 ( V 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)
2 . 5 (9/15)

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 )

4 4 . 5 (2/20)
10.3 ( 1 / 2 )

8 . 6 (2/20)
1.1 (1/2)

1 1 . 1 (2/20)
3.5 (1/2)

1977-High
Low

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

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

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

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

3 5 . 3 (11/11)
10.6 (10/10)

4 . 2 (1/13)
1.4 (9/22)

11.2 (11/10)
5 . 1 (5/27)

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)

11.0 (10/30)
1 . 3 (1/20)

18.8 (5/18)
2.8 (1/20)

1979-High

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)

3 7 . 1 (1/12)
18.3 ( 1 / 2 )

4.3 d / 1 2 )
2.4 ( 1 / 2 )

13.4 ( 1 / 2 4 )
7.2 ( 1 / 2 )

5
12
19
26

55.41
55.91
55.85
56.99

831.69
836.28
837.49
859.75

157.66
160.33
161.04
162.35

122.05
123.74
124.65
127.04

27.4
27.1
27.4
30.4

3.5
3.2
3.3
2.9

10.6
11.0
10.8
12.1

2

55.79

834.63

159.59

125.82

27.3

2.6

10.6

Low

1979
Jan.

Feb.

NOTES:
1

Figures other than highs and lows are Fridays only. Highs and lows are for the year and are not necessarily for Fridays.

2

Volume figures are weekly averages of daily figures (millions of shares).

3

12/31/65 - 50

4

Based on average price change until September 4, 1973 thereafter, based on market value of shares listed.




/

12
Table 8

SECURITY CREDIT
REGULATED MARGIN CREDIT EXTENDED BY
END OF PERIOD

BROKERS ON
MARGIN
STOCK

OUTSTANDING

1977 - November
December

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

9,610
9,740
9,590
9,780
9,920
10,260
10,660
11,090
11,190
11,740
12,400
12,090
11,000
10,830

1

BROKERS O N 2
CONVERTIBLE
BONDS

C/
246250

BANKS

872
873

3

UNREGULATED NONMARGIN
STOCK CREDIT
AT BANKS

2,604
2,568

246
242
246
248
245
242
247
243
225
216
209

851
2,565
877
2,544
855
2,544
914
2,560
s e r i e s discontinued

n.a.—
4

-10
1

-4
-4
4
2
-3
-3
5
-4
-18
-9
-7

-22
-3
26
-21
-22
-59
16
s e r i e s discontinued

CHANGE IN OUTSTANDING

1977 - November
December
1978 - J a n u a r y
February
March
April
May
June
July
August
September
October
November
December

50
130
-150
190
140
340
400
430
100
550
660
-310
-1,090
-170

.

25
—36

mmm

NOTES:
1

Margin account debt as reported by the New York Stock Exchange, excluding credit for subscription issues and convertible bonds.

2

New York Stock Exchange data.

3

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.

4

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.

5

Data p r i o r t o November n o t s t r i c t l y comparable due t o changes i n r e p o r t i n g .




4

Table 9

SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS
IN MILLIONS OF DOLLARS

SAVINGS & LOAN ASSOCIATIONS

MUTUAL SAVINGS BANKS
REGULAR DEPOSITS
DATE
NET
FLOW

1974
1975
1976
1977

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

1978-M#y
June
July
Augus t
September
October
November_/
December!!'

543
514
963
1,222
1,313
1,251
391
665

ANNUAL 3
GROWTH
RATE

2.3
11.3
11.6
8.9

436
1,304
341
260

1978-May
June
July
August
September
October
November- ,
December^

1

NET
NEW
MONEY

-2,822
4,757
5,275
2,874
97
-90
38
-75
-41
48
-59
-325

275
1,425
4.8
4.5
8.5
10.7
11.4
10.8
3.3
5.7

2

SHARE CAPITAL
NET
FLOW

16,006
42,769
50,169
50,963

ANNUAL 3
GROWTH
RATE

7.1
17.6
17.6
15.2

NET
NEW
MONEY

4,668
29,276
34,369
32,004

NOT SEASONALLY ADJUSTED
2,380
—
2,145
6,656
—
1,744
3,074
—
2,812
2,312
—
2,069
6,433 .
—
1,606
2,645^
—
2,534
2,157
—
1,897
4,895
—
689
SEASONALLY ADJUSTED
3,010
9.1
3,452
10.3
5,192
15.4
5,439
15.9
6,112
17.7
4,227
12.0
—
4,459
12.6
3,637
10.2

TOTAL

2

DEPOSITS
NET
FLOW

18,171
53,839
62,839
61,610
2,816
7,960
3,415
2,572
7,811
3,260
2,432
6,320
3,553
3,966
6,155
6,661
7,425
5,478
4,850
4,302

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 Net f l o w s r e f l e c t t h e c o n v e r s i o n of an S&L to an MSB.
Source: N a t i o n a l A s s o c i a t i o n of Mutual Savings Banks and Federal Home Loan Bank Board.




ANNUAL 3
GROWTH
RATE

5.6
15.8
15.9
13.5

—

8.0
8.9
13.7
14.6
16.1
11.7
10.3
9.0

NET
NEW
MONEY

1,846
34,033
39,644
34,783
2,242
1,654
2,850
1,994
1,565
2,582
1,838
364

2

14
Table 10

MORTGAGE COMMITMENTS AT
SELECTED THRIFT INSTITUTIONS
BILLIONS OF DOLLARS, SEASONALLY A D J U S T E D

OUTSTANDING COMMITMENTS
PERIOD
TOTAL

ALL S A V I N G S
MUTUAL
SAVINGS BKS
& LOAN
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

- .25

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.a
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

33.6
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

—

.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.




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 A N D LONG-TERM I S S U E S

TOTAL

FHLB

FHLMC

FNMA

F N M A & FHLB
SHORT-TERM
DISCOUNT
NOTES 1

1975 - J u l y
Aug.
Sept.
Oct.
Nov.
Dec.

+236
-398
215
587
152
669

+300
-700
100
850
200
600

0
-700
0
+150
0
0

0
0
0
0
200
0

+300
0
100
700
0
600

-64
302
115
-263
-48
69

1976 - J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-197
-964
-851
124
-953
-107
-58
787
195
-37
-552
145

0
-604
-304
693
-607
-206
291
+190
190
310
-297
-219

0
-1,100
0
0
-600
0
0
0
0
0
-300
0

0
196
-4
-7
-7
-6
-9
+190
-10
-8
-9
-7

0
300
-300
700
0
-200
300
0
200
318
12
-212

-197
-360
-547
-569
-346
99
-349
597
5
-347
-255
364

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

399
1,712
887
848
3,091
1,492
1,605
1,811
1,683
1,680
1,323
2,200

-12
1,388
-17
600
1,483
1,276
1,881
1,182
1,131
1,630
1,100
2,000

0
1,400
0
0
1,500
0
700
1,200
0
0
900
600

-12
-12
-17
0
-17
276
-19
-18
181
-70
200
120

0
0
0
600
0
1000
1200
0
950
1700
0
1250

411
324
904
248
1,608
216
-276
629
552
50
223
200

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

2

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

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

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
344
1,700
4,837
553
2,600
4,856
486
2,600
5,021
569
3,500
5,660
642
3,700
3,991
674
3,200
4,721
636
3,700
4,294
516
2,800
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

572
515
587
482
563
454
635
585
538
480
638

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

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.
MayJune
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 - J a n .
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

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

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 83 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
*-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.
Digitized for 3
FRASER
Residential mortgage debt includes nonfarm only and is sum of 1 to 4- family and multifamily mortgage debt.


T
T a b l e 14

PRIVATE HOUSING PERMITS, STARTS,
COMPLETIONS, AND MOBILE HOME SHIPMENTS
IN T H O U S A N D S O F U N I T S , S E A S O N A L L Y A D J U S T E D ANNUAL R A T E S

PERIOD

TOTAL

1 —FAMILY

COMPLETIONS

STARTS

PERMITS 1
2 - O R MORE
FAMILY

TOTAL

1 —FAMILY

TOTAL

2 - O R MORE
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
1,0-92
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

392
466
618
673
576
683
666
585
612
651
597
592

1 —FAMILY

I

!

MOBILE
HOME
2 - OR M O R E
FAMILY
SHIPMENTS

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

808
802
1,014
1,143
1,174
932
867
1,026
1,254

392
617
692
828
840
760
430
336
398

413
401
497
576
567
329
216

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

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
OR
A
JUo

246

277

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
apartment buildings, all units are considered started at that time; however, all such units are considered completed when more than half of the units in the structure are ready for use. Private mobile
home shipments are Mobile Home Manufacturers Association data converted to seasonally adjusted annual rate by Census Bureau.
1
Permit data for 1969 and 1970 based on 13,000 areas with permit systems



T a b l e 15

AVERAGE RATES AND YIELDS ON HOME MORTGAGES

EXISTING HOMES

NEW HOMES

1

1

PERIOD

SPREAD
BETWEEN
R E T U R N S ON
NEW A a a
NEW HOMES
CONVENTIONAL
w v n v b n 1 iwiiML
UTILITY
1
AND HUD(FHA)
BOND
NEW HOME
DISCOUNT
YIELD
SPREAD
(PERCENTAGE MORTGAGES (IN PER CENT)
(BASIS
(BASIS
POINTS)
POINTS)
POINTS)

H U D ( F H A ) INSURED L O A N S
S E C O N D A R Y MARKET

CONVENTIONAL L O A N S
PRIMARY MARKET

RATE
(IN PER CENT)

SPREAD
(BASIS
POINTS)

RATE
(IN PER CENT)

SPREAD
(BASIS
POINTS)

YIELD
(IN PER CENT)

1976 - High
Low

9.05
8.90

91
5

9.10
8.95

95
10

9.06
8.25

59
8

4 .3
2 .0

65
- 4

8.72
8.05

1977 - High
Low

9 .10
8.80

99
52

9.20
8.85

98
63

9.11
8.40

73
22

4 ,7
1.7

40
4

8.31
8.01

1978 - J a n .

9.15
9.25
9.30
9.40
9.60
9.75
9.80
9.80
9.80
9.95
10.10
10.30

N
A
54
47
48
58
59
72
100
74
72
NA
NA

9.20
9.25
9.30
9.45
9.60
9.75
9.80
9.80
9.85
9.95
10.15
10.30

N
A
54
47
53
58
59
72
100
79
72
NA
NA

9.11
N
A
9.29
9.37
9.67
N
A
9.92
9.78
9.78
9.93
9.99
10.16

N
A
N
A
46
45
65
N
A
84
98
72
55
NA
NA

4.7
N
A
4.1
4.7
5.0
N
A
3.1
2.1
2.1
2.1
3.6
4.8

4
N
A

N
A
8.71
8.83
8.92
9.02
9.16
9.08
8.80
9.06
9.23
NA
NA

Feb.

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

1

3
- 7
N
A
-12
2
2
2
11
14

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

I_i

vo

20
Table 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

AVERAGE
YIELD

ACCEPTED

10.69(12/27) 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

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

Oct.

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

Jan.

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

1979

8

23

9.13(1/9)

75(8/7)

48(8/7)

9.28(1/9)

10.21

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