Full text of H.16 Capital Market Developments : January 10, 1972
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DECOmOLLiW k£ r m S I X MOUTHS: (FR ) January u FEDl* " CAPITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research e t d Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. 1 0 " 19 72 -f INDEX 3-5 Developments in the Corporate and Municipal Bond Markets 6-7 C a p i t a l Market Y i e l d s 8-13 C a p i t a l Market Volume 14-17 Stock Market 18-33 Mortgage Market SYMBOLS: e Estimate p Preliminary r Revised n.a. Not a v a i l a b l e TABLE 1: Yields, Volume and Reception WEEK ENDING 1971 - Dec. - Jan. 3 10 17 24 31 7.18 7.08 7.03 . 6 13 7.00 Jan. 7.28 7.27 —7.24 7.23 7.22 -- 7.19' n.a. YIELDS MOODY 1 S BOND BUYER SEASONED SEASONED 20 BOND INDEX WEEK ENDING: 1971 - Dec. CORPORATE BOND MARKET . VOLUME 2 1 PER CENT 1 GROSS SOLD BY END BONDS SCHEDULED ; OFFERINGS I OF WEEK 1 WITHIN ^2 8 DAYS YIELDS MOODY'S • SEASONED NEW ISSUE 1 3 10 17 * 24 31 5.20 5.00 5.00 5.00 4.75 6 13 4.00 / "« 5.44 5.23 5.21 5.13 5.02 5.03 " 1 213 607 452e 45 0 85 64 71 100 0 ~n.a. n.a. n.a. 514 550e 65 n.a. ____ MUNICIPAL BOND MARKE r V ' UME 2 1 GROSS OFFERINGS 404 424 1,195 69 40 126 546e PER CENT SOLD BY END OF WEEK I 1 BONDS SCHEDULED 1 WITHIN 28 DAYS 86 90 56 60 42'" 1,472 1,279 454 610 858 72 1,000 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 irfclicated. Note: Sue footnotes to Table 3 - TABLti 2. Details on Inventories DATI: OFFERED 1/6 1/6 1/6 1/5 1/5 12/13 12/8 AMOUNT fMIL. S) | ' 1 50.0 13.0 100.0 50.0 75.0 18.0 30.0 CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL I RATING AND ISSUER COUPON YIELD CALL PROTECTION Balto G & E Sun Shipbuilding Conill Co Bell Tele of Pa Bell Tele of Pa Gen'l Tele of Ind Penn Elect 7 1/8 7.05 6 5/8 6 3/8 7 1/8 7 1/2 7 7/8 ' 7.13 7.05 6. 66 6.38 7.20 7.45 7.70 Aaa Aaa NR Aaa Aaa A A 5 10 6 5 5 5 5 T ESTIMATED PRO1 PORTION SOLD yrs yrs yrs yrs. yrs yrs yrs 25% 98% 70% 40% 50% 75% 75% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT ISSUER COUPON IN YIELD CALL PROT. PORTION RELEASED YIELD NONE INVENTORIES 1 MUNICIPALS IN SYNDICATE 1971 - Dec. .3 10 17 24 31 792 749 l,032r 1,106 1,027 952 CORPORATES IN SYNDICATE 148 80 556 312 159 59 231 279 246 37 125 182 N.C. - No call protection. 1 All figures in millions of dollars. Blue List is daily average for week ended Fridav,except for Litest which i s daily average of three days endt-d "Wednesday. All other figures are as of Fri dav. TABLE 3: High Grade Bond Yields y NEW CORPORATE Aaa 1 DATE 1970 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) 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) — — 7.23 7.22 6.07 6.00 5.13 5.02 7.00 7.20 6.01 5.03 Nov. Jan. 24 31 6 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 series. 6 TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) 'GROSS PROCEEDS CORPORATE PERIOD 1971 1970 1 STATE A N D LOCAL ' 1969 January February March 3,115 3,000 6,075 2,636 1,802 3,539 April May 4,007 3,271 4,375 3,170 3,909 3,389 2,748 ' 2,076 2,530 July August September 4,147 2,532 3,768 2,768 2,274 2,518 2^478 1,427 2,427 October November December 3,369 3,550e 3,375e 2,777 4,182 3,980 1,933 2,375 2,532 12,190 11,654 10,447 10,294 7,977 10,468 8,560 11,939 6,218 7,354 6,332 6,840 23,844 34,291 44,585 18,445 27,005 38,944 13,572 19,904 26,744 1st 2nd 3rd 4th Quarter Quarter Quarter Quartoi- ls t half Three quarters Year 1971 1970 1969 2,706 1,839 2,156 1,340 1,214 1,555 1,262 987 538 1,920 2,140 2,035 1,647 996 1,085 1,801 1,110 737 j 1,964 1,892 2,061 1,348 1,359 1,758 1,097 808 559 * 1,696 2,265 1,800e 1,924 1,748 2,190 1,280 886 816 6,701 6,095 5,917 5,761e 4,109 3,728 4,465 5,862 2,787 3 ,648 2,464 2,982 7,837 12,302 18,164 6,435 8,899 11,881 ! 2,075 2,045 "2,098 | ! ! 12,796 18,713 24,474 Excluding finance companies' 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year 1 2 3 Securities and Exchange Commission' estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. Total gross proceeds excluding offerings of sales and consumer finance companies. TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) OVARTER OR MONTH TOTAL ' iv 11,938 - I II III IV 12,190 11,688 10,447 10,294 GROSS PROCEEDS RY CROSS PROCEEDS BY TYPE OF ISSUE TYPE OF ISSUER COMMON AND BONDS MEMO: COMMUNIPUBLIC ISSUES INCLUDED PUBLICLY PRIVATELY PFD. MFG-. UTILITY CATIONS PLACED STOCK . FOREIGN | CONVERTIBLE OFFERED 226 3,,169 2, 690 1 421 737 7, 827 3,,406 1,346 8 6 4 5 369 546 725 117 1 ,516 1 ,758 1 ,641 2 ,003 2 3 4 3 306 384 079 174 84 215 114 ' n.a. OTHER ISSUERS 1 4,020 724 1,351 652 770 3,,794 3,,130 2.,202 2,,288 3,,197 2.,910 2 ,651 ; 3: ,193 1,606 896 2,263 1,027 3,594 4,753 3.331 3,786 - Nov. Dec. 4,181 3,979 3:,001 2 ,436 : 283 834 898 709 11 159 184 165 1,,107 1,,056 1,,350 955 693 282 1,033 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 1.,069 676 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 i 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. 4,147 2,532 1 ,331 1 ,428 72 34 199 160 582 474 1,622 359 1,210 850 P-'/ Nov.e/ Dec. e/ M- 1 3,375 . 1 ,225 619 416 l 800 • 2 ,196 687 1 ;I 1,350 1 n l 1 1 •i 150 775 Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Sourcc: Securities, and Exchange Commission. Quarterly supplements are available. 732 849. 1 1: i 1,000 i 340 !$! 1,260 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 COUPON RATE OR NET INTEREST COST OFFERING YIELD MOODY ' >• RATING Corporate Minneapolis Gas Co Iowa Pwr & Light Co Houston Lighting & Pwr Co G e n 1 1 Tel of Calif Delmarva Pwr & Light Co Hartford Elec Light Co Allegheny Pwr System Inc Cleveland Elec Illuminating Co Equity Funding Corp of America Michigan Wisconsin Pipeline Co Duke Pwr Co Duke Ptir Co Dominion Bankshares Burlington Northern Inc Burlington Northern Inc Penna Elec Co . New York Tel Co Pacific Lighting Service Co Puerto Rico Tel, First Union Real Estate Equity . and Mtge Inv. Coit International Inc Gen '1 Pub Util Corp Philadelphia Elec Co Gen '1 Tele Co of Indiana U.S. Home Corp Southern Co Connecticut Light & Pwr Co S.F. debs 12.0 1st mtg 15.0 1st mtg 50.0 1st mtg 50.0 1st mtg 35.0 1st mtg 30.0 •Com stk 43.9 Pref 50.0 Debs 38.5 Bonds 40.0 Notes 60.0 1st ref mtg 40.0 Debs 15.0 Eq tr 16.0 S.F. certf 34.0 30.0 1st mtg Ref mtg 200.0 S.F. debs 26.0 Debs 35.0 < Debs Debs Com stk 1st mtg Bonds Conv debs Com stk 1st mtg 20.0 25.0 29.2 80.0 18.0 20.0 131.5 30.0 1996 2001 2001 2001 2001 2001 7.88 7.63 7.50 7.63 7.63 7.63 -- —— — -- .a -- -- -- 1991 5.50 1991 7.63 1978 6.85 20Q1 7.38 1996 7.75 1972-76 — 1986 7.38 2001 7.88 2011 " 7.38 1991 7.88 1996 8.10 1991 1996 7.00 6.00 -- -- 2001 2001 1996 7.38 7.50 5.50 • 7.88 7.58 7.37 7.63 7,55 7.55 5.50 7.63 6.85 7.45 7.75 5.00-6.,50 7.43 7.70 7.28 7.63 8.10 A Aa Aaa A Aa .Aa —— A A ' Aa N.R. A Aa A Aaa A Ba 7.00 ~ 6.00 —— 7.30 7.45 5.50 Aa A B --- -- —— -- -- 2001 7.38 7.39 Aa T A B L E 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 Nov. 29, thru Jan. 7, 1972 ISSUER TYPE2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST OFFERING YIELD MOODY'S RATING Corporate Continued Connecticut Light & Pwr Co Lone Star Gas Co, First Wisconsin Mtge Inv KMC M t g Investors Alabama Pwr Co Alabama Power Co . First National State Bancorp Clark Equipment Co Norton Simon Inc Long Island Lighfting Co Hotel Investors First Nat'1 Holding Corp Condec Corp Investors Div SVCS Inc. Larwin Realty & Mtge Tr. ICM Realty Equitable Say. & Loan Assc Winnebago Industries Inc. Bell Tele Co of Pa. Bell Tele Co of Pa Bank of Am Central Tele Co of 111. • Conill Corp Bait Gas & Elect Southern Ry Co Southern Pac Transportation Co Pref stk S.F. debs Benf Int. Benf Int. 1st mtg Pref. stk Notes Com stk S.F. debs 1st mtg Debs Notes Q.onv debs Conv debs Benf int. B e n f int. CAp stock Com st Bonds Notes Notes 1st mtge Notes 1st mtge Eqtr Eqtr 20.1 30.0 30.0 15.0 25.5 38.0 25.0 42.6 1996 7.50 7.52 2002 7.50 7.50 1979 7.20 7.20 60.0 1996 2001 1991 1979 1991 1991 7,10 7.50 .7.50 7.25 7.75 6.50 7.70 7.35 7.50 7.25 7.75 6.50 50; 0 20.0 35.0 10.0 35.0 Baa A 60.0 23.0 24.3 24.2 • 75.0 50.0 150.0 12.5 100.0 50.0 11.0 11.0 2012 1978 1980 1997 1979 2002 1973-1987 1972-1986 7.125 6.38 6.38 7.50 6.68 7.13 7.00 7.00 7.20 6.38 6.38 7.50 6.67 7.13 4.85-7.15 4.85-7.20 Aaa Aaa Aa Aa Aa / TABLE 6: Large Long Icrm Public Security Issues for New Capital (continm rli (Other than U.S. Treasury)1 I ISSUER TYPE 2 j 1 \ State and Local Connecticut, State of Oneida Co., N.Y. Oneida Co., N.Y. University of Texas Suffolk Co., N.Y. Penna, State of Penna, State of Chicago, 111. Milwaukee-, Wise. Greater Anchorage Area Borough, Alaska New Jersey Hennepin Co., Minn Phoenix, Ariz. Albany Co., N.Y. Nassau Co., N.Y. Ann Arbor Pub Sch., Mich West Virginia Rhode Island N.Y. City Warwick, R.I. Chicago Public Bldg Com Oklahoma Capital Imp Auth Oregon, State of Oklahoma Indus Auth Orleans Parish Sch Bd HAA G.O. G.O. G.O. Rev. G.O. G.O. G.O. Rev. G.O. G.O. G.O. G.O. G.O. G.O. G.O. G.O. G.O. G.O. G.O. G.O. Rev. Rev. G.O. Rev. G.O. Bonds Nov. 29, through January 7, 1972 AMOUNT COUPON 1 • (MILLIONS 1 ' RATE OR OITI'.R- 1 MOODY'S 1 . MATURITY 1 NET INTEROF 1:.( ; RATING DOLLARS) [ i VILLI) 1 1 EST COST 12.5 4.1 12.0 50.0 17.0 50.0 75.0 25.0 17.0 " 1972-1981 1972-1996 1972-2001 1972-2002 1972-1995 1974-2001 1974-2001 1976-1986 1972-1991 10.0 1974-1992 75.0 1976-1995 10.7 1974-1990 10.0 , 1974-1979 70.0 1972-2001 48.9 1972-2000 12.9 1992-1997 40.0 1972-1996 26.8 1973-1992 376.8 - - W a -2012 11.3 1972-1991 55.0 1973-1991 . 17.5 1975-2002 60.0 1982-1990 29.0 1973-1991 12.0 1973-1997 253.0 1972-2012 --—— 5.47 5.22 5.31 5.31 -- 4.63. 6.03 4.80 4.28 3.15 5.37 -— 4.79 4.55 4.23 5.99 4.69 4.89 5.17 4.53 4.89 4.97 4.93 2.70-4.25 2.75-5.20 2.80-5.25 2.75-5.70 2.90-5.50 3.40-5.65 3.40-5.76 3.90-4.00 2.85-5.70 Aaa 4.00-6.20 3.50-5.15 3.25-5.00 3.15-3.90 2.70-5.75 2.75-5.25 3.20-5.35 2.65 2.70-5.00 4.00-6.70 2.80-5.10 3.00-5.40 3.20-5.40 4.00-4.75 3.00-5.40 2.70-5.30 2.50-5.10 uri a a Aaa Aa Aa A A A-l — A-l A Aa A-l A-l Aaa A-l Baa -1 A A-l A Aa A-l A Aaa T A B L E 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 AMOUNT (MILLIONS OF DOLLARS) Nov 29 through January 7. 1972 I COUPON | RATE OR ! OFFER- MOODY 1 S MATURITY j NET INTER- ' i;,<; RATING | EST COST J YIELD State and Local Con't Ohio Richmond, Va West Virginia Hsg. Dev. Fund Dallas, Texas Dallas, Texas Vermont Muni Bond Bank Missouri Housing Dev. Com, Kansas Waterbury, Conn Bridgeport, Conn Industry Urban-Dev Agy., Cal Ohio, State of Rev. G.O. G.O. Rev. G.O. G.O. Rev. G.O. G.O. G.O. G.O. 40.0 35.0 12.2 8.0 3.0 20.0 12.9 10.3 l'l.l 10.0 60.0 1975-2003 1973-1992 1973-2013 1973-1992 1973-1992 1973-1991 1974-2014 1973-1991 1973-1992 1999 1973 1992 | 5.46 4. 50 6. 13 4. 51 4. 41 4.38 5. 97 4. 29 4..36 . 6.,47 4..30 3. 30-5.60 2. 70-4.90 3. 40-6.00 2. 50-5.10 3. 55-4.80 2. 70-5.00. 3. 50-6.00 2.,70-4.80 2..80-4.806..50 2.,60-4.70 1977 7,.10 . 6.38 7,.10 6 .38 -- Aa —— Aa Aa Aaa —— — Aa — Aaa Other Farmers Home Administration International Bk for Rec & Dev Gov't Notes Notes 350.0 250.0 -- Aaa Rights 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; •<ev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by incomc from quasi-utilities.; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent., 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. TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 ISSUER TYPE AMOUNT (MILLIONS <JF DOLLARS) APPROXIMATE DATE OF OFFERING Corporates Texas Elect SVC BT Mtge Investors McCulloch Oil Corp Northern Natural Gas Co. Oklahoma G & E Transok Pipeline Co Alison Mtge & Inv Trust General Elect Co Pub SVC Co of Ind. Southeastern Tele Co. Burlington Northern Langfitt Shipping South Carolina Elec & Gas Heitman Mtge Investors Kentucky Pwr Co. Louisiana Pwr & Lt. Co. Louisiana Pwr & Lt. Co. Tampa Elect Beneficial Corporation C & P Tele Co of Md. Gen'1 Tele Co of 111. First Nat'1 Boston Corp , Mony Mtge Inv. Pacific NW Bell Tele Nigara Mohawk Pwr Corp Pa Pwr & Lt Co Texas Pwr & Light Texas Pwr & Lt Fla Pwr & Lt. Co. Central Hudson Gas & Elect Co Pacific Tele & Tele Co Pacific Tele & Tele Appalachian Pwr Appalachian Pwr Co Va Pwr & Lt. Minn Pwr & Lt Public SVC of Colo Northern States Pwr Gen'l Tele Co of Wise Metropolitan Edison Institutional Investors Trust North American Car C.orp Fidelco Growth Investors Bonds 30.0 Debs 20.0 Debs 30.0 Debs 60.0 • Bonds 30.0 Bonds 15.0 Debs 25.0 Debs 125.0 Bonds • 50.0 Bonds 20.0 Debs 65.0 Bonds 16.4 1st & Ref mtge 30.0 30.0 Debs Bonds 50.0 Com stk • 45.0 Bonds 25.0 Bonds 40.0 Debs 75.0 Bonds 100.0 Bonds 20.0 100.0 Bonds Debs 50.0 Notes 75.0 Gen'l mtge bds. 80.0 Bonds 75.0 25.0 Pref 40.0 Bonds Pref stk 80.0 Bonds 17.5 Debs 175.0 Notes 75.0 Pref st 25.0 Bonds 50.0 Pref St 45.0 Pref st 20.0 Pref st 25.0 Bonds 50.0 Bonds 25.0 Pref st 35.0 Conv debs 30.0 Equip trst ctfs 20.0 Conv debs 25.0 , Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. 1 Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. 10 11 11 11 11 11 12 12 12 12 13 13 13 17 17 19 19 20 24 25 „ 27 1 3 7 8 8 9 9 15 15 16 16 17 22 23 23 24 28 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 ISSUER AMOUNT (MILLIONS OF DOLLARS) TYPE APPROXIMATE DATE OF OFFERING State and Local San Francisco, Cal Cuyahoga Co. Ohio Jackson, Tenn New York, New York Wisconsin G.O. G.O. Refunding G.O. G.O. 37.0 15.9 10.1 142.5 40.0 Jan. Jan. Jan. Jan. Jan. 10 10 11 11 11 Georgia Education Auth. (Univ.) Rev. Huntington Bea^ch, Calif Pub Fac. Rev. New York, New York G.O. Atlanta, Ga. Rev Bonds Connecticut G.O. Columbus, Ohio G.O. L'Anse Creuse Pub S/D, Mich G.O. St. Paul Minn G.O. Rev. Illinois Bldg Auth Dallas Co. Tex Rev. Omaha Pub Pwr Dist., Neb. Elec Rev. Seattle, Wash Rev. Penna, State of G.O. California, State of G.O. Los Angeles DWAP Rev. Wilmington, De. G.O. Hartford, Conn G.O. Elec Rev Tallahassee, Fla Ohio, State of G.O. Philadelphia Sch Dist, Pa G.O. 27.0 11.1 30.7 13.0 100.0 18.8 _ 22.6 11.0 51.1 12.3 170.0 24.0 jjan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Feb. Feb. Feb. March 11 12 12 12 13 17 17 18 18 20 20 25 25 25 26 27 2 10 10 . 1^ ' 50.6 100.0 15.0 14.4 25.0 23.0 60.0 40.5 Other U.S. Postal Service * 1 2 Bonds 250.0 Jan. 12 Included in table for first time. f Includes corporate and other issues of S15 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. STOCK PRICES AND VOLUME STOCK PRICES 1 - * TRADING V O L U M E 2 ' DATE NYSE INDEX 3 - D J . INDUSTRIALS AMEX * NYSE AMEX - High, Low 50.32 (5/14) 968.85 (5/14) 32.91 (1/13) 16.5 (3/29) 49.31 (7/29) 769.93 (12/17) 25.02 (7/29) 8.6 (8/29) 8.0 (1/31) 3.6 (11/21) - High Low * 52.36 (1/5) 842/00 (12/29) 27.02 (1/8) 18.5 (12/4) 37.69 (5/26) 631.16 (5/26) 19.36 (5/27) 7.8 (8/14) 7.1 (1/2) 1.8 (8/14) 57.76 (4/28) 950.82 (4/28) 26.68 (4/28) 22.1 (2/12) 48.73 (1/4) 797.97 (11/23) 22.72 (1/4) 11.0 (8/13) 6.7 (2/12) 2.7 (8/13) 1971 - High Low 1971 - Dec. 3 10 17 24 31 53.51 53.99 55.32 55.62 56.43 859.59 ' 856.75 873.80 081.17 890.20 24.60 24.99 25.20 25.29 25.59 18.6 16.3 17.9 19.8 14.4 4.5 4.2 4.4 5.5 5.2 - Jan. 7 57.21 910.37 26.14 17.5 5.3 Figures other than highs and lows are Fridays only. Highs and lows are for the year and are 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 27X1/2 hours per week. : years, however abbreviated trading to the extent, and over the time periods, shown below: Through: 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. r; TABLE 9: Security Credit ;ni;t END OF PERIOD CREDIT EXTENDED TO MARGIN CUSTOMERS BY.: BROKERS 1 T n A N K S J ~ | TOTAL CUSTOMERS r NET DEBIT BALANCES ckkuii CUSTOMERS ' NET I EXTEND!.'!) BY j BROKERS AND FREE CREDIT I DEALERS 3 BALANCES Outstanding; (4) (4) (4) 2,163 197£ - Oct. * Nov. Dec. 4,010 4,010 4,030 2,270 2,320 2,303 6,280 6,330 6,360 1971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 4,000 4,090 4,300 4,530 4,620 4,720 4,790 4,850 4,930 4,950 2,300 2,330 2,360 2,340 2,340 2,390 2,420 2,430 2,430 2,410 6,300 6,420 6,660 6,870 6,960 7,110 7,210 7,280 7,360 7,360 90 -60 50 10 30 50 30 -73 34 89 -30 90 210 230 90 100 70 60 -30 30 30 -20 -60 120 240 210 90 150 100 70 20 -20 291 291 55 -138 -110 110 230 -10 100 60 2,286 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 2,200 2,100 Change in Outstanding 1970 - Oct. Nov. Dec. 1971 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 20 50 30 10 80 80 Margin debt, as reported by the New York Stock Exchange. Although margin debt until March 1968 included loans secured by U.S. governments, the amount of such loans included is thought to have been small. "Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments." The difference between customers' net debit balances and customers'net free credit 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 New York Stock Exchange and are end of month data. Bank loans are for weekly reporting large commercial banks. Broker data includes loans for regulated securities; banV data includes loans for the purpose of purchasing or carrying any security, whethei f S S S & t cHlscontlnued. Changes in series. » TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE 1968 1969 1970 1970 1971 October November December | October November £/ December £./ MUTUAL SAVINGS BANKS REGULAR DEPOSITS 3 NET NEW ANNUAL MONEY 2 GROWTH NET 1 FLOW RATE • TOTAL SAVINGS . Sc LOAN ASSOCIATIONS DEPOSITS SHARE CAPITAL NET ANNUAL ANNUAL NEW GROWTH NET GROWTH MONEY 2' NET 1 RATE 1 FLOW FLOW RATE 4,203 2,549 4,466 7.0 4.0 6.7 * Not Seasonally Adjustvd 7,432 6.0 2,738 4,200 3.2 -1,003 11,173 8.2 5,295 276 497 1,218 -- 382 632 1,100 — --— 1,143 -763 936 138 388 376 1,130 1,103 2,816 __ 224 512 n.a. 1,600 1,573 2,800 __ —- —- 11,635 6,749 15,639 6.3 3.4 7.7 j NET NEW 1 MONEY2 3,881 -1,766 6,231 1,050 1,044 1,161 1,406 1,600 4,034 1,1-88 1,432 1,537 1,504 1,496 n.a. 1,982 2,205 3,900 1,728 2,008 Seasonally Adjusted 1971 July August September October November jg/ December £/ 565 425 643 543 675 726 8.8 6.6 9.9 8.3 10.2 10.9 ---- 2,598 1,285 2,160 1,889 1,600 1,723 19.2 9.3 15.6 13.5 11.3 12.0 —— -—— --- • 3,163 1,710 2,803 2,432 2,275 2,449 15.9 8.5 13.8 11.8 10.9 11.7 Annual growth ra te for monthly data is the annualized monthly percentage increase in deposits. new deposits net of both withdrawals and interest. Data for S&Ls are for Net New Money insured associat ions only, which represent 96% 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: Nationa 1 Association of Mutual Savings Banks and Federal Home Loan Bank Board. TABLE 11: Mortgage Commitments at Selected Thrift Institutions DATE TOTAL OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS SAVINGS & BANKS LOAN (N.Y. STATE) ASSOCIATIONS 1 1 TOTAL 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars, Se isonally Adjusted)Sept. Oct. Nov. Dec. 71 - Jan. Feb. * Mar.Apr. May June July Aug. Sept. l 8.9 9.3 9.6 10.1 10.4 U.2 12.6 13.8 15.3 16.1 16.3 16.4. ' 16.5 7.1 7.5 7.8 8.1 . 1-8 1.8 1.8 2.0 .25 .30 .35 .51 8.3 8.9 10.1 11.1 12.2 13.0 13.2 13.3 13.3 2.1 2.3 2.5 2.8 3.1 3.1 3.1 3.1 3.2 .25 .80 1.36 1.30 1.56 .77 .24 1 .07 .12 „ .36 .37 .34 .28 .20 .60 1.16 1.01 1,21 .72 .28 1/ 1 .10 £/ . -.01 -.11 -.07 .01 .23 ,• 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 inculde loans in process. w 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. .05 .20 .20 .29 .34 .05 .02 , .03 1/ . 13 18 T A B L E 12: Net Change in Mortgage Holdings 1 FINANCIAL INSTITUTIONS MUTUAL SAVINGS & | L I F E LOAN I INSURANCE SAVINGS COMPANIES BANKS TOTAL INCLUDING FNMA-GNMA COMMERCIAL BANKS Not Seasonally Adjusted 20,016 23,781 24,189 21,822 18,219 21,273 19,814 16,913 2,212? 1,673 1/956 1,845? 4,456 4,094 3,827 3,930 3,586 3,371 2,072 2,318 4,639 6,677 5,404 2,462 300 500 300 1,000 1,100 900 2,682 7,520 9,350 9,676 1,845 10,288 182 1,114 1,123 3,153 2,787 216 164 415 272 414 1,188 2,391 2,122 1,992 2,907 2,459 2,052 2,318 77 117 193? 124 92 65 Seasonally Adjusted 1,919 2,196 2,133? 2,049 2,604 1,860 2,097 2,988 2,939 3,280 4,177 4,259 4 304 3,995 3,745 1,511 1,832 1,813? 1,820 2,504 1,893 2,184 2,996 2,018 3,273 3,972 3,898 3,770 3,486 3,338 268 329 295 224 312 383 445 688 653 840 1,197 969 972 922 896 175 245 ' 138 176 250 175 217 380 283 313 413 373 410 302 389 983 1,104 1,175 1,289 1,710 1,311 1,425 1,774 2,044 2,095 2,339 2,484 2,258 2,130 1,977 85 155 205? 131 232 24 97 154 38 25 23 72 130 132 76 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 Association, and thereData for mutual after by FNMA and the Government National Mortgage Association. 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 grouDS accounted for 84 per cent of the net increase estimated for all holders in 1 9 7 0 . 19 TABLE 13: Net Increases in Mortgage Debt Outstanding 1 Billions of dollars, SAAR ^ QUARTER TOTAL RESIDENTIAL 3 1- to 4FAMILY MULTIFAMILY 2.6 2..1 5.5 4.1 8.1 6.2 2.2 1.8 COMMERCIAL MULTI-AND COMMERCIAL FARM - II IV 18.6 15.1 10.9 9.1 8.3 7.0 - I II III IV 15.9 20.7 26.6 27.3 10.3 13.9 19.2 19.8 7.0 10.5 15.3 16.0 3.3 3.4 . 3.9 3.8 3.9 5.0 4.9 4.8 7.2 8.3 8.8 8.6 1.8 1.8 2.5 2.8 - I II III IV 27.7 26.2 26.0 29.6 19.0 18.2 17.7 20.2 15.8 15.0 14.1 16.4 3.1 3.2 3.4 3.8 6.4 5.9 6.5 7.5 9.6 9.0 10.1 11.3 2.2 1.8 1.8 - I II III IV 31.3 28.9 26.5 25.1 25.0 21.5 19.3 18.3 18.6 16.9 14.6 13.0 4.4 4.7 4.7 5.3 6.2 5.2 5.3 5.4 10. 6 9.9 10.1 10.7 2.2 2.2 1.8 1.4 - I II III IV 20.2 22.8 29.5 31.6 13.8 16.9 22.1 22.5 8.8 11.5 15.8 16.1 5.0 5.4 6.3 6.4 4.9 4.3 5.2 6.9 9.9 9.7 . 11.5 13.4 1.5 1.5 2.1 2.1 - Ip Hp 36.3 47.6 25.9 36.4 17.7 26.2 8.2 10.2 8.1 8.9 16.3 19.1 — 1 2 3 — . 2.3 - 2.2 2.3 S T 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. May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family and multifamily mortgage debt combined. TABLE 14: FNMA Weekly " A u c t i o n " Results -.1 WEEK ENDED July 26 Aug. "25 COMMITMENTS IN $ MILLIONS IMPLICIT YIELD 2 (per cent) ACCEPTED 3-4 1-YEARI1 months • 6TOTAL TOTAL 61-YEAR 1 3-4, OFFERED MONTH & OVER & OVER MONTH mo. 1! 686.2 < 183.4 \ 183.4 634.-6'-" 153.5 153.5 -- -- 8.07 -- -- -- -- 7.97 -- -- 7.88 7.86 -- 7.85 7.83 — Sept. 7 20 445.2 437.5 188.6 193.0 188.6 193.0 — Oct. 4 18 365.1 219.8 194,8 103.6 194.8 103.6 -- 1 15 126.0 145.3 56.4 102.0 56.4 102.0 Nov. x — — — 7.77 7.70 Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments. For "proposed construction" of new homes only. 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. Short-term commitments converted from a 3 to a 4 month basis beginning October 18, 1971. 21 TABLE 15: Private Housing Starts and Permits STARTS DATE SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE TOTAL . ) - Oct. Nov. Dec. • - Jan. Feb. Mar. Apr. May June July Aug. r/ Sept. r/ Oct. £ / Nov. 1 2 1,583 1,693 2,054 890 934 1,240 1,725 1,754 1,959 1,912 1,975 2,000 2,229 2,258 |2,002 2,008 2,316 • 946 985 1,048 1,098 1,124 1,177 1,187 1,212 1,187. 1,150 1,297 693 759 814 779 769 911 814 851 823 1,042 1,046 785 858 1,019 | UNADJUSTED 1 TYPE OF FINANCING 1 FHA VA 1 OTHER |' | BUILDING PERMITS (SEASONALLY ADJUSTED ! • ANNUAL ; RATE) 2 40.4 33.7 63.2 5,.8 5,.5 5..7 94.7 87.2 . 52.5 1,,523 1 ,487 1:,768 110.6 32.3 102.2 27.3 167.9 * 33.5 201.1 44.6 198.5 40.7 193.8 . 46.1 194.3 42.9 204.5 45.8 49.6 173.8 177.7 39.2 172.9 4,,6 4,.7 6.,9 8.,5 8. 4 9. 3 9. 2 9. 4 8. 7 8. 1 73.7 70.2 127.6 148.0 149.4 138.4 141.1 147.0 113.4 134.7 1,,635 1 ,563 1,,627 1,,638 1,,927 1,,849 2,,052 2,,006 1,,900 2,,173 1,,961 - 140.9 126.9 121.4 * 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 per mits reflect direct adjustment for differences in the number of working days per month, as well as other differences in timing and coverage. 22 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES DATE 30-year 2 CONVEN- j SPREAD BETWEEN YIELDS TIONAL MORT- j ON C0NV. & FHA M0RTGAGES GAGES 5 3 . ! 1 NEW 1 Aaa CORBORATE BONDS 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,. 9 1 1.08 -.13 1970 - High Low 9.. 2 9 8,. 40 8.60 8.30 -.10 -.74 9.. 1 1 7.. 8 0 .99 .01 1971 - High Low 7,.97 7..32 7.95 7.55 .28 -.19 8.. 0 1 7.,24 1971 " July Aug. Sept. 7,.97 7,.92 7.. 8 4 ' 7.80 7.85 7.85 -.17 -.07 .01 7.,96 1. 65 7. 44 .01 .27 .40 1..75 7..62 7.80 7.75 .05 .13 7. 29 7 . 19 .46 .43 Oct. Nov. 1 1 2 3 4 5 6 " ^ .40 -.36 Neither mortgage nor bond yields include allowance for servicing costs which are much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the table. Based on FHA-fieId-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 downpdyments, and weighted by probable volume of tansactions. Yields computed by FHA, assuming prepayment period of 15 years for 30-year mortgages. Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities. See n o t e f o r T a b l e 1 . yield spread equals conventional mortgage rates less FHA secondary market yield. Yield spread equals FHA secondary market yield less new Aaa corporate bond yield. 23 TABLE 17: Conventional Mortgage Terms k DATE NEW HOMES CON- FEES & TRACT CHARGES EFFEC- MATURITY (PER RATE (YEARS) TIVE (PER CENT) RATE CENT) 3 2 LOAN/ PRICE LOAN RATIO AMT. (PER ($000) CENT) 4 8 .26 8 .20 0.99 1.07 8.43 8.38 25 .3 25 .8 73.8 8 .03 7,.74 7,.52 7..37 7,.36 7..38 7.,51 7. 60 7. 67 7. 68 7. 65 0.92 1.00 0.83 0.73 0.71 0.74 0.90 0.84 0.97 0.97 0.87 8.18 7.91 7.66 7.49 7.47 7.50 7.66 7.74 7.83 7.84 7.79 25 .8 26 .2 25..9 26,.3 26..1 26,,3 26. 3 26. 2 25. 8 26. 4 26. 7 73.3 73.9 73 .,7 73.6 74.0 73.7 74.5 73.9 75.3 75.5 75.7 1 EXISTING HOMES CON- FEES & LOAN/ TRACT CHARGES EFFEC- MATU- PRICE (PER RATE TIVE RITY RATIO (PER CENT) RATE (YEARS) (PER CENT) CENT). 2 3 LOAN AMT. ($000) 4 25,.2 25,.8 8 .18 8 .12 0.85 0.85 8 .32 9 .26 22,.7 23,.3 71 .5 71 .9 21.1 21.7 26..4 26..2 26.,0 26.,2 26. 7 27. 2 27. 1 26. 5 25. 9 26. 3 27. 2 7 .94 7 .67 7 .47 7 .34 7 .33 7 .38 7,.50 7,.58 7..63 7.,62 7.,58 0.82 0.79 0.77 0.75 0.71 0.74 0. 75 0.76 0.78 0.79 0.77 8 .08 7 .80 7.60 7,.47 7..45 7..50 7.,63 7.,71 7. 76 7. 75 7. 71 23..5 24..0 24..1 24.,2 24. 0 24. 3 24. 2 24. 5 24.-2 24. 1 24.2 72,.5 73,.1 73..5 73.,6 73.,2 73.,9 74.5 74. 2 74. 5 74. 2 74.5 22.0 22.5 23.0 23.1 23.3 28.3 23.2 23.5 22.5 22.9 22.9 1970 Nov. Dec. 72a 1971 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 1 Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction'loans to home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted opinions of field-office directors of the Federal Housing Administration, are available somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in =the case of new home mortgage rates--in Table 16. 2 Fees and charges--expressed as a percentage of the principal mortgage amount—include loan commissions, fees, discounts, and. other charges which provide added income to the lender and 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 r interest rate. 4 Derived by FRB.
@FedFRASER