Full text of H.16 Capital Market Developments : January 17, 1977
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r ? Capital Market Developments % 2-1 H i s 3-8 ¥ 5 " I k V January 17,1977 Prepared by the CAPITAL MARKETS SECTION in conjunction with the MORTGAGE and CONSUMER FINANCE SECTION DIVISION OF RESEARCH AND STATISTICS BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM Washington, D C. 20551 Index • SUBSCRIPTION RATES: Weekly $15.00 per year or $.40 each in the United States, its possessions, Canada, and Mexico; 10 or more of the same issue to one address, $13.50 per year or $.35 each. Elsewhere, $20.00 per year or $.50 each. Address requests to Publications Services, Division of Administrative Services, and make payment remittance payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. Currency. TABLES 1 - 6 S E C U R I T Y VOLUME AND Y I E L D S 7, 8 STOCK MARKET AND S E C U R I T Y CREDIT 9 - 1 6 MORTGAGE MARKET SYMBOLS e P r n.a. ESTIMATE PRELIMINARY REVISED NOT AVAILABLE DATA DO NOT EXIST Table 1 YIELDS, VOLUME AND RECEPTION C O R P O R A T E BOND MARKET VOLUME YIELDS WEEK ENDING 1976 - December N E W ISSUE A a a UTILITY 3 10 17 24 31 1977 - January 7 14 1 RECENTLY OFFERED A a a UTILITY 2 7.97 7.94 7.97 7.92 7.84 7.95 7.93 7.96 •www 7.95r 8.02p 7.90r 8.05p GROSS OFFERINGS ( $ MILLIONS) 3 PER CENT SOLD BY END O F WEEK 1,020 992 720 0 0 100 83 67 100 985 97 95 — — NEW I S S U E S 4 IN SYNDICATE ( $ MILLIONS) 0 152 266 116 44 26 59 MUNICIPAL BOND MARKET VOLUME YIELDS WEEK ENDING 1976 - December 1977 - January MOODY'S NEW ISSUE Aaa BOND BUYER 2Q-BOND INDEX J GROSS OFFERINGS ( $ MILLIONS) PER C E N T S O L D BY END O F WEEK NEW I S S U E S 4 IN SYNDICATE ( $ MILLIONS) 10 17 24 31 5.10 5.07 5.07 5.07 5.04 6.03 5.96 5.95 5.93 5.83 691 694 746 114 30 88 87 83 80 75 122 144 226 201 143 7 14 5.01 5.10 5.78 5.89 314 861 58 88 188 195 3 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 4 Estimated by F.R. on the basis of available data. Corporate Market: Salomon Brothers Bond Market Roundup; Municipal Market: Weekly Bond Buyer. Data are adjusted by Federal Reserve when necessary to make coverage of this series consistent with the gross offerings series. 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 SEASONED CORPORATE Aaa 3 U.S. GOVT. 20-YEAR C O N S T A N T MATURITY 4 B O N D BUYER 2 0 - B 0 N D INDEX 1972 - High Low 7.60 (4/21) 6.99 (11/24) 7.49 ( 4 / 2 1 ) 7.15 (12/1) 7.36 (4/28) 7.05 (2/12) 6.19 (4/14) 5 . 7 4 (11/17) 6 . 5 4 (4/13) 4 . 9 6 (10/21) 1973 - High Low 8.52 (8/10) 7.29 (1/21) 8.32 (8/10) 7.28 (1/5) 7.77 (8/24) 7 . 1 1 (1/5) 7.79 (8/10) 6.42 ( 1 / 5 ) 5.59 (8/3) 4 . 9 9 (10/11) 1974 - High Low 10.61 (10/4) 8 . 0 5 (2/15) 10.52 (10/11) 8.13 (1/4) 9.39 (10/11) 7 . 7 3 (1/4) 8 . 6 8 (8/30) 7.39 ( 1 / 4 ) 7 . 1 5 (12/12) 5.16 (2/7) 1975 - High Low 9.80 (5/2) 8.89 (2/7) 9.71 (5/25) 9.06 (2/28) 9 . 0 1 (5/2) 8.57 (2/28) 8 . 6 3 (9/19) 7 . 6 3 (2/21) 7.67 ( 1 0 / 3 ) 6.27 (2/13) 1976 - High Low 8 . 9 5 (5/28) 7 . 9 3 (12/10) 9.10 (1/2) 7.84 (12/31) 8.66 (5/28) 7.91 (12/31) 8.17 (5/28) 7.27 (12/31) 7.29 ( 1 / 2 ) 5 . 9 5 (12/16) 1976 - Dec. 3 10 17 24 31 7.95 7.93 7.96 7.97 7.94 7.97 7.92 7.84 8.09 8.01 8.00 7.96 7.91 7.39 7.32 7.34 7.28 7.23r 6.03 5.96 5.95 5.93 5.83 1977 - J a n . 7 14 7.90r 8.05p 7.95r 8.02p 7.88 7.94p 7.26r 7.51p 5.78 5.89 NOTES: 1 Federal Reserve series of implied yield on newly issued, Aaarated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa rated utility bond with 5-year call protection released from price restrictions sometime during the last 4 weeks. 3 Weekly average of daily closing figures. 4 5 Weekly average of daily figures. U.S. Treasury data. Thursday figures. The average rating of the 20 bonds used in this index falls midway between the four top groups as classified by Moody's Investors Service. Weekly Bond Buyer data. 5 Table 3 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS IN MILLIONS O F DOLLARS G R O S S PROCEEDS January February March April May June July August September 1974 2,347 2,707 3,339 2,361 2,387 2,135 2,255 2,003 2,025 3,060 3,164 2,981 2,429 3,477 3,013 2,406 2,900 3,064 2,397 2,304 2,166 4,327 2,405 2,836 3,248 2,667 1,617 2,682 2,757 2,803 3,580 2,783 2,159 1,459 1,106 1,701 4,705 4,076 4,307 4,609 3,739 3,511 2,323 2,381 2,052 2,860 2,483 1,479 13,879 14,126 11,369 15,273 15,688 9,568 13,088 9,232 9,205 7,532 11,859 8,393 8,919 8,242 6,883 8,370 8,522 6,756 6,283 6,867 4,266 6,822 28,005 39,374 30,961 40,529 53,617 18,437 25,969 37,828 17,312 25,554 15,253 23,775 30,531 13,150 17,416 24,238 1975 1974 3,381 3,863 6,635 5,367 4,528 5,378 3,328 2,687 3,217 3,522 4,186 6,418 4,294 5,798 5,59b 3,216 3,350 4,803 November December 01 03 04 1st Half 3 Qtrs. 2 S T A T E AND LOCAL 1975 1976 October 02 1 CORPORATE PERIOD Year NOTES: 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts, 1976 Table 4 NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER IN MILLIONS O F DOLLARS G R O S S P R O C E E D S BY TYPE O F ISSUER G R O S S P R O C E E D S BY TYPE O F I S S U E PERIOD MEMO BONDS TOTAL PUBLICLY OFFERED COMMON AND PRIVATELY PREFERRED PLACED STOCK I S S U E S INCLUDED FOREIGN MANUFACTURING PUBLIC UTILITY COMMUNICATIONS OTHEF ISSUER CONVERTIBLE 1975 - I I I IV 9,568 13,088 5,428 5,816 2,085 4,158 2,054 3,116 1,225 1,902 463 215 2,420 3,480 3,327 3,424 679 1,215 3,142 4,974 1976 - I II III 13,879 14,126 11,369 7,569 7,427 4,904 2,757 3,578 4,604 3,553 3,121 1,861 1,340 1,843 1,267 257 478 433 4,500 3,739 2,971 4,044 3,140 3,315 765 1,879 378 4,569 5,336 4,707 1975 - S e p t . Oct. Nov. Dec. 2,836 4,705 4,076 4,307 1,414 2,389 1,666 1,761 585 769 1,640 1,749 837 1,547 772 797 300 102 825 975 38 61 619 952 1,103 1,425 1,264 1,247 1,275 902 297 928 55 232 657 1,579 1,645 1,750 1976 - J a n . Feb. Mar. Apr. May June July Aug. Sept. 3,381 3,863 6,635 3,522 4,186 6,418 3,216 3,350 4,803 2,189 2,142 3,238 2,350 1,937 3,140 1,239 1,565 2,100 613 794 1,350 644 1,051 1,883 1,348 1,107 2,149 579 927 2,047 528 1,198 1,395 629 678 554 605 335 400 428 350 1,005 500 367 400 1,073 1,179 2,248 584 1,709 1,446 1,198 1,024 749 1,097 789 2,158 644 1,148 1,348 932 920 1,463 16 171 578 450 20 1,409 26 212 140 1,197 1,722 1,650 1,842 1,309 2,215 1,061 1,195 2,451 NOTES: 1 Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: Securities and Exchange Commission. 154 121 15 121 37 15 426 — 7 92 # # e # e # # e Table SA INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY' January 3 through January 14, 1977 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OFFERING YIELD MOODY'S/S&P'S RATINGS CORPORATE M i s s o u r i P a c i f i c Ry. Co. P u b l i c S e r v i c e Co. of I n d i a n a Iowa P u b l i c S e r v i c e Co. Gulf S t a t e s Ut-ils. Co. Middle South U t i l s . Co. Oklahoma Gas & E l e c t r i c Co. Clark Eouipment C r e d i t Corp. B u r l i n g t o n Northern Ry. Co. General Motors Acceptance Corp. General Motors Acceptance Corp. I n l a n d S t e e l Co. Gulf S t a t e s U t i l i t i e s Co. Kraft Inc. P e n n z i o l Co. Union P a c i f i c R a i l r o a d Co. Equip. t r . 1st mtg. Com. S t k . Pfd. Stk. Com. S t k . 1 s t mtg. Notes Equip, t r . Debt. Notes Debt. 1 s t mtg. SF Debt. Debt. 1 s t mtg. 15.0 85.0 21.5 50.7 134.0 75.0 50.0 15.4 250.0 150.0 125.0 60.0 100.0 100.0 60.0 OTHER O n t a r i o , P r o v i n c e of Wacoal Corp. Debt. Com S t k . 300.0 27.2 1977-1992 2007 * mm mm mm —— 2007 1987 1978-1992 2002 1987 2007 2007 2007 2002 1978-1992 2007 NOTES: * 1 Rights offering. Includes only corporate and other security offerings of $15 million and over; excludes options, exchanges, and secondary offerings. 7.50 7.63 • 6.25-7.60 7.63 Aa/AA Aa/AA 8.52 Aa/AA 8.23 8.00 5.40-7.65 8.00 7.35 7.90 8.30 7.60 8.75 5.75-7.70 Aa/AAA/A Aa/AA Aaa/AA Aaa/AA Aa/AA Aa/AAAaa/AAA Baa/BBB Aaa/AAA 8.40 Aaa/AA mm 8.52 — ~ 8.38 8.00 7.50 8.00 7.35 7.90 8.38 7.60 8.75 5.75-7.70 8.40 T a b l e SB INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY ' J a n u a r y 3 through January 14, 1977 ISSUER TYPE AMOUNT (MILLIONS O F DOLLARS) MATURITY NET I N T E R E S T COST OFFERING YIELD 2.90-5.45 3.25-6.00 2.50-4.60 3.10-5.75 4.00-6.50 6.88 5.50 3.40-6.00 6.25 2.75-5.35 3.50-5.40 4.25-6.30 6.63 6.63 2.75-5.80 MOODVS/SftP'S RATINGS S T A T E AND LOCAL San Antonio, Texas M a s s a c h u s e t t s , S t a t e of Denver, Colorado Rockland Co., N.Y. M a s s a c h u s e t t s Hsg. F i n a n c e Agy. M a s s a c h u s e t t s Hsg, F i n a n c e Agy. Ohio Water Dev. Auth, New J e r s e y Housing Finance Agy. New J e r s e y Housing F i n a n c e Agy. L o u i s i a n a , S t a t e of Metro. Water D i s t . of S. C a l i f . Michigan S t a t e Hosp. F i n . Auth. Michigan S t a t e Hosp. F i n . Auth. Michigan S t a t e Hosp. F i n . Auth. F o r t Worth, Texas F o r t Worths Texas Richmondf Va. York Co. I n d u s t , Dev. A u t h . , Pa. E r i e Co., N.Y. I l l i n o i s Health Fac. Auth. I l l i n o i s Health Fac Auth. I l l i n o i s Health Fac. Auth. I l l i n o i s Helath F a c . Auth Rev. G. 0 . G. 0 . G.O. Rev. Rev. Rev. Rev. Rev. G.O. G.O. Rev. Rev. Rev. G.O. 60.0 125.0 56.5 13.0 25.0 125.8 12.5 14.6 57.1 114.0 90.5 3.7 7.4 2.9 24.4 1979-2000 1978-1997 1977-1989 1978-2000 1979-1995 2018 2007 1979-1997 2020 1978-1997 1981-2000 1980-1992 2004 2007 1978-2002 5.25 5.72 4.38 Rev. G.O. Rev. G.O. Rev. Rev. Rev. Rev. 4.0 30.0 14.2 37.9 13.2 5.8 11.7 12.8 1978-2002 1978-1997 2007 1977-2003 1980-1992 1997 2007 1977-1985 5.12 5.04 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. 6.89 6.89 - - 6.27 6.27 4.89 5.03 - - - - 4.87 aa — 6.83 —— —— - - 2.90-5.90 2.75-5.50 6.00 3.50-7.10 4.20-6.30 6.40 6.60 2.30-4.40 Aa/AA A-l/AA — / —— A-l/AAA A-l/AA A-l/AA Aa/AA A-l/AA A-l/AA Aa/AA Aaa/AAA A/A A/A A/A Aa/AA A-l/AA Aa/AA A/AA-l/— A-1/A+ A-1/A+ A-1/A+ Aaa/AAA Table 6A FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U S. TREASURY 1 a s of J a n u a r y 14, 1977 ISSUER TYPE AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING CORPORATE Ohio B e l l Telphone Co. Iowa I l l i n o i s Gas & E l e c t r i c Co. New England Power Co. A t c h i s o n T6peka & Santa Fe Ry. Co. A s s o c i a t e s Corp. of North America A s s o c i a t e s Corp. of North America Georgia P a c i f i c Corp. Georgia P a c i f i c Corp. Iowa I l l i n o i s Gas & E l e c t r i c Co. Commonwealth Edison Co. Iowa Pub. S e r v i c e Co. Southern I n d i a n a Gas & E l e c t r i c Co Republic S t e e l Corp. General Telephone of Northwest Co. Household Finance Corp. American C r e d i t Corp. S e a r s Roebuck & Co. Walter E. H e l l e r & Co. Walter E. H e l l e r & Co. Texas Power & L i g h t Co. Texas Power & L i g h t Co. Sperry Ravel F i n a n c e Company Montana Power Co. Southern Ry. Co. Zapata Corp. Combanks Corp. *U.S. Bancorp. A s s o c i a t e d F i r s t C a p i t a l Corp. Commercial C r e d i t Co. P a c i f i c Telephone & Telegraph Co. Wisconsin P u b l i c S e r v i c e s Corp. Union P a c i f i c Ry. Co. * Kansas Power & L i g h t Co. Gulf Power Co, Gulf Power Co. P u b l i c S e r v i c e E l e c t r i c & Gas Co. Debt. Com. S t k . 1 s t mtg. Equip. t r . Notes Notes Notes Notes 1 s t mtg. Bonds Com. S t k . 1 s t mtg. SF Debt. Debt Notes Notes SF Debt. Notes Debt. 1 s t mtg Pfd. Stk. Notes Pfd. Stk. Equip, t r . Debt. Notes Debt. Med. t e r m Notes Med. t e r m Notes Debt. 1 s t mtg. Equip, t r . Pfd. Stk. 1 s t mtg. Pfd. Stk. 1 s t mtg. 125 .0 15 .0 50..0 18,.9 50..0 25..0 100..0 100 .0 30.0 180 .0 15 .0 30 .0 125 .0 50 .0 100 .0 50 .0 300 .0 50 .0 50 .0 100 .0 30 .0 125 .0 30 .0 19 .7 40 .0 20 .0 40 .0 100 .0 100..0 325 .0 45 .0 16 .5 25 .0 50 .0 15 .0 98 .0 Jan. Jan. Jan. Jan. Jan. Jan. 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. Jan. 17 17 18 18 18 18 18 18 18 19 19 19 20 20 20 24 24 24 24 25 25 26 26 27 2 2 8 8 9 9 13 10 Table 6B FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 1 As of January 14, 1977 ISSUER STATE & LOCAL W e s t c h e s t e r Co., N.Y. G a r l a n d , Texas A r l i n g t o n , Texas Alpine School D i s t . , Utah *New J e r s e y H e a l t h Care Fac. F i n . Auth. G e o r g i a , S t a t e of S u l l i v a n Co., Tenn. Oregon, S t a t e of Wisconsin, S t a t e of Los Angeles Dept. of Water & Power, C a l . New Hampshire, S t a t e of S p r i n g f i e l d E x p o s i t i o n & Stadium Auth., I l l i n o i s Wayne-Westland Comm. Sch. D i s t . , Mich. Georgia Mun. E l e c . Auth. G t r . Chicago Metro. S a n i t a r y Dist., Illinois F l o r i d a , S t a t e of * Alaska, S t a t e of *Jackson C o . , M i s s . *Hampton Roads S a n i t a r y D i s t . , Va. Jacksonville Elec. Auth., Fla. New York S t a t e Power Auth. ^ C o n n e c t i c u t H l t h . & Educ. Fac. Auth. * S u f f o l k C o . , N.Y. Texas, S t a t e of Washington Sub. S a n i t a r y D i s t . , Md. C a s t a i c Lake Water Agy., C a l . *Bucks Co. Water & Sewer A u t h . , Pa. *New C a s t l e C o . , Del. *Houston I n d . Sch. D i s t . , Tex. ^ C a l i f o r n i a , S t a t e of *0regon, S t a t e of *Dayton, Ohio TYPE AMOUNT (IN MILLIONS O F DOLLARS) APPROXIMATE DATE O F OFFERING G.O. Rev. G.O. G.O. 65,.0 13,.9 11,.5 10,.0 Jan. Jan. Jan. Jan. 17 17 18 18 Rev. G.O. G.O. G.O. G.O. 22,.0 11,. 5 10,.0 130,.0 74,.0 Jan. Jan. Jan. Jan. Jan. 18 18 18 18 18 Rev. G.O. 147 .7 62,.2 Jan. Jan. 19 19 Rev. 21,.0 Jan. 19 G.O. Rev. 10,.0 300,.0 Jan. Jan. 19 19 G.O. Rev. G.O. G.O. Rev. Rev. Rev. 40,.0 12,.5 40,.0 11,.0 20,.0 45,.0 200,.0 Jan. Jan. Jan. Jan. Jan. Jan. Jan. 20 20 25 25 25 25 25 Rev. Rev. G.O. 16..4 70,.0 16..0 Jan. Jan. Jan. 26 26 26 G.O. G.O. Rev. G.O. G.O. G.O. Rev. G.O. 70..2 18.,6 17,.0 30..0 70,.0 75..0 30.,0 12.,0 Jan. Jan. Jan. Jan. Feb. Feb. Feb. Feb. 26 26 27 27 7 8 9 9 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. 11 Table 6B Continued FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 1 As of January 14, 1977 ISSUER STATE & LOCAL $ *Dallas I n d . Sch. D i s t . , Tex. *Richardson, Texas TYPE G.O. G • 0. AMOUNT (IN MILLIONS OF DOLLARS) 30.0 13.3 APPROXIMATE DATE OF OFFERING Feb. Feb. 14 15 Table 7 STOCK PRICES AND VOLUME 1 STOCK PRICES DATE NYSE INDEX 3 B J INDUSTRIALS AMEX 4 . 2 TRADING VOLUME NASDAQ NYSE AMEX NASDAQ 1973 - High Low 6 5 . 5 8 (1/11) 49.12 (12/13) 1051.50 (1/11) 788.31 (12/5) 130.47 ( 1 / 1 1 ) 85.26 (12/20) 136.84 (1/11) 89.12 (12/13) 26.0 (9/20) 9 . 0 (8/20) 5 . 5 (1/12) 1.4 (8/20) 11.3 (1/11) 3.5 (8/27) 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 ( 1 2 / 9 ) 96.53 (3/15) 54.87 (10/3) 24.9 ( 1 / 3 ) 7.5 ( 7 / 5 ) 4.4 (1/3) .9 (9/26) 7.5 ( 1 / 3 ) 2.8 (7/5) 1975 - High Low 51.24 (7/15) 37.16 (1/8) 881.81 (7/15) 632.04 ( 1 / 2 ) 96.86 (7/15) 62.20 ( 1 / 2 ) 88.00 (7/15) 60.70 ( 1 / 2 ) 35.2 (2/13) 8.7 (9/15) 4.2 (2/21) 1.1 (9/15) 8.1 (2/13) 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) 44.5 (2/20) 10.3 ( 1 / 2 ) 8 . 6 (2/20) 1.1 (1/2) 11.1 ( 2 / 2 0 ) 3.5 (1/2) Dec. 3 10 17 24 31 55.20 56.33 56.24 56.49 57.88 950.55 973.15 979.06 985.62 1004.65 100.15 103.20 104.07 105.90 109.84 92.31 94.62 94.64 95.22 97.88 24.2 23.8 21.6 21.6 26.0 2.4 3.1 3.1 3.0 3.4 7.8 8.7 8.3 8.4 8.9 Jan. 7 14 56.79 56.36 983.13 972.16 109.94 111.18 97.53 97.20 27.5 24.5 3.0 3.3 8.1 7.9 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 12/31/66 - 50 4 Based on average price change until September 4, 1973 thereafter, based on market value of shares listed. Table 8 13 SECURITY CREDIT REGULATED MARGIN CREDIT EXTENDED BY END OF PERIOD B R O K E R S ON MARGIN STOCK 1 BROKERS ON CONVERTIBLE BONDS 3 2 BANKS UNREGULATED NONMARGIN STOCK CREDIT AT BANKS OUTSTANDING 1975 - S e p t . Oct. Nov. Dec. 1976 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 5,250 5,300 5,370 5,390 145 144 146 147 852 1,007 1,008 960 2,520 2,311 2,270 2,281 5,420 5,950 6,410 6,690 6,940 7,080 7,340 7,450 7,530 7,530 7,610 146 153 162 163 161 166 172 167 173 169 178 1,000 1,037 1,042 1,076 1,007 1,028 898 1,061 859 1,068 n.a. 2,321 2,333 2,355 2,325 2,357 2,368 2,317 2,368 2,830 2,774 n.a. 30 50 70 20 3 -1 2 1 20 155 1 —48 63 -209 -41 11 30 530 460 280 250 140 260 110 80 -1 7 9 1 -2 5 6 -5 6 -4 9 40 37 5 34 -69 21 -130 163 202 209 n. a. 40 12 22 -30 32 11 -51 -51 462 -56 n.a. CHANGE IN OUTSTANDING 1975 - S e p t . Oct. Nov. Dec. 1976 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 80 NOTES: 1 Margin account debt as reported by the New York Stock Exchange, excluding credit for subscription issues and convertible bonds. 2 3 New York Stock Exchange data. June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which accounted for 60 per cent of security credit outstanding at banks on June 30. 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 unrelated; at brokers, such stocks have no 4 Table 9 cr SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN MILLIONS OF DOLLARS MUTUAL SAVINGS BANKS REGULAR DEPOSITS DATE 1971 1972 1973 1974 1975 NET FLOW 9,621 10,067 4,815 2,909 11,070 1976 - A p r i l May June July August September October 586 801 1,207 910 308 1,307 836 1976 - A p r i l May June July August September October 917 1,024 646 1,712 1,248 1,315 1,204 1 NET NEW MONEY SAVINGS & LOAN ASSOCIATIONS 2 SHARE CAPITAL ANNUAL 3 GROWTH RATE 5,378 13.5 5,451 12.4 5.3 -442 -2,822 3.0 4,757 11.3 27,793 32,567 20,237 16,053 43,118 352 561 -36 333 47 75 582 2,798 3,050 5,042 3,184 2,165 5,597 3,467 • —— — — 9.8 10.8 6.8 17.9 12.8 13.4 11.8 —— NET FLOW SEASONALLY 3,676 3,642 2,861 5,018 5,341 5.626 4,480 NET NEW MONEY TOTAL •: 2 DEPOSITS ANNUAL 3 GROWTH RATE 19.0 20,653 18.7 23,884 9.8 10,507 7.0 4,668 17.7 29,276 37,414 42,634 25,052 18,962 54,188 2,583 2,835 1,353 3,282 1,967 1,944 3,224 3,384 3,851 6,249 4,094 2,473 6,904 4,303 — . —— ADJUSTED 14.7 14.4 11.2 19.4 20.3 21.0 16.5 —— —— NET FLOW 4,593 4,666 3,507 6,730 6,589 6,941 5,684 ANNUAL 3 GROWTH RATE 17.2 16.7 8.4 5.8 15.9 NET NEW MONEY 2 26,331 29,335 10,062 1,846 34,033 3,935 3,396 1,317 3,615 2,014 2,019 3,806 13.4 13.4 10.0 19.0 18.3 19.0 15.3 —— —— —— — —— 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 increese in deposits. Source: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. N.16 15 Table 10 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS O F DOLLARS, SEASONALLY A D J U S T E D NET CHANGE OUTSTANDING COMMITMENTS PERIOD TOTAL MUTUAL ALL S A V I N G S SAVINGS B K S & LOAN ASSOCIATIONS (N.Y. S T A T E ) TOTAL MUTUAL ALL S A V I N G S SAVINGS BKS & LOAN ASSOCIATIONS (N.Y. STATE) 1972 - Dec. 25.2 20.3 4.9 .45 .43 .02 1973 - Dec. 19.9 16.4 3.5 .04 .21 -.17 1974 - Dec. 14.6 12.4 2.2 ™ .09 -.09 1975 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 14.6 14.5 15.0 16.2 16.8 17.0 17.9 19.1 20.0 20.1 20.4 20.4 12.5 12.6 13.0 14.2 14.7 14.9 15.9 16.9 17.9 18.0 18.4 18.5 2.1 1.9 2.0 2.0 2.1 2.1 2.1 2.2 2.1 2.1 2.0 2.0 -.03 -.01 .50 1.18 .55 .25 .92 1.21 .90 .01 .35 .04 .08 .14 .39 1.17 .49 .21 .94 1.10 .96 .07 .42 .08 -.11 -.24 .11 .01 .06 .04 -.02 .11 -.06 -.06 -.07 .04 1976 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 20.5 21.1 21.5 21.9 22.5 22.6 23.2 24.1 25.1 26.3 27.2 18.5 19.2 19.4 19.7 20.2 20.4 20.9 21.6 22.5 23.6 24.5 2.0 1.9 2.1 2.2 2.3 2.2 2.3 2.4 2.6 2.7 2.7 .06 .61 .48 .38 .48 .27 .50 .87 1.05 1.20 .97 .02 .67 .27 .29 .44 .29 .44 .75 .82 1.11 .94 .04 -.06 .21 .09 .04 -.02 .05 .12 .23 .09 .03 • 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 endof period outstanding levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. H.16 T a b l e 11 16 NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN MILLIONS OF DOLLARS PERIOD INTERMEDIATE A N D LONG-TERM I S S U E S TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES TOTAL FHLB 1974 - S e p t . Oct. Nov. Dec. +2,768 +1,665 -89 +507 +2,750 +1,599 +93 +961 +1,700 +1,499 -217 +470 1975 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. -242 -659 +440 0 -1,568 +330 +236 -398 215 587 152 669 -5 -254 +689 +69 -1,279 +600 +300 -700 100 850 200 600 -4 -554 -11 -30 -1,279 0 0 -700 0 +150 0 0 1976 - J a n . Feb. Mar. Apr. May June July Aug. Sept. -197 -1,160 447 131 -946 -101 -49 397 257 0 -800 -100 700 -600 -200 300 -200 200 0 -1,100 0 0 -600 0 0 0 0 NOTES: Based on data from Treasury Survey of Ownership. Sales of FHLB discount notes began in May 1974. Digitizedpfor FRASER Preliminary FHLMC FNMA FNMA & FHLB SHORT-TERM DISCOUNT NOTES 1 +1,050 +100 +310 +491 +18 +66 -182 -454 +300 0 -1 0 0 0 0 0 0 200 0 -1 0 +700 +100 0 +600 +300 0 100 700 0 600 -237 -405 -249 -69 -289 -270 —64 302 115 -263 —48 69 0 200 0 0 0 0 0 -200 0 0 300 -300 700 0 -200 300 0 200 -197 -360 -547 -569 -346 99 -349 597 57 T a b l e 12 NET CHANGE IN MORTGAGE HOLDINGS IN M I L L I O N S O F D O L L A R S PERIOD TOTAL INCLUDING FNMA-GNMA 2 FINANCIAL INSTITUTIONS TOTAL COMMERCIAL BANKS MSB's S & L's INSURANCE F N M A - G N M A COMPANIES Not S e a s o n a l l y A d i u s t e d 1971 1972 1973 1974 1975 1976 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 41,406 57,587 58,372 42,732 43,608 39,018 55,561 55,072 36,510 38,769 9,940 16,800 19,600 11,700 4,200 3,938 5,377 5,642 2,172 2,236 23,919 31,932 25,552 17,560 29,400 1,221 1,452 4,278 5,078 2,933 2,388 2,026 3,300 6,222 4,839 2,403 3,534 4,691 5,424 4,878 5,951 6,213 5,636 5,953 4,983 1,993 3,270 5,531 5,088 5,412 6,594 5,907 5,356 6,093 5,399 300 600 900 900 1,100 1,100 1,000 600 1,300 1,000 700 87 106 324 309 240 517 323 384 364 398 1,378 2,416 4,069 4,171 4,032 4,815 4,522 4,234 4,090 3,895 3,545 228 148 238 -292 40 162 62 138 326 106 410 264 -840 +336 -534 -643 306 280 -140 -416 592 2,189 2,848 3,844 3,771 3,232 3,894 4,070 3,803 4,359 4,398 4,187 336 274 414 -299 161 147 94 144 365 48 486 415 -686 +162 -343 -565 47 47 -397 -556 582 Seasonally Adiusted 1976 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 3,873 4,748 4,879 4,697 4,071 4,546 5,407 4,722 5,914 5,358 3,387 4,333 5,565 4,535 4,414 5,111 5,360 4,675 6,311 5,914 678 962 987 762 826 699 968 372 1,129 1,023 814 184 249 320 301 195 371 228 356 445 445 NOTES: 1 Monthly data fur 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 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 FRASER Beginning January 1972 data reflect activity in limited amount of conventional mortgages. Digitized for T a b l e 13 NET INCREASE IN MORTGAGE DEBT OUTSTANDING IN BILLIONS OF DOLLARS, S E A S O N A L L Y A D J U S T E D A N N U A L R A T E S 2 3 RESIDENTIAL MULTFAMLY a COMMERCIAL FARM 6.6 5.2 5.2 6.0 11.0 9.8 9.8 12.3 2.0 2.0 1.7 1.3 5.5 5.5 8.2 8.6 5.6 6.8 8.3 7.6 11.1 12.3 16.5 16.1 0.9 1.0 1.4 1.4 23.3 30.0 33.1 36.3 9.5 10.4 9.1 9.7 6.6 8.9 11.7 11.5 16.1 19.3 20.8 21.2 2.5 2.5 2.7 2.8 50.6 53.6 56.7 65.7 39.4 40.7 46.0 49.5 11.2 12.9 10.7 16.2 16.6 15.6 14.7 20.4 27.8 28.6 25 .4 36.5 3.4 3.6 3.8 3.3 86.4 84.0 80.0 71.4 59.6 58.3 55.2 49.5 51.4 45.3 43.1 41.4 8.2 13.0 12.1 8.2 21.3 20.2 19.5 16.3 29.5 33.2 31.6 24.5 5.6 5.5 5.3 5.6 1974 - I II III IV 71.8 69.0 56.0 46.3 49.3 46.8 35.7 28.9 39.8 39.5 29.5 24.3 9.6 7.3 6.2 4.8 18.9 17.4 14.0 11.6 28.5 24.7 20.2 16.5 3.6 4.8 6.3 5.8 1975 - I II III IV 38.8 54.5 62.9 69.2 26.3 40.3 46.1 51.6 26.3 40.3 46.1 52.1 0.0 0.0 0.1 -0.5 7.2 9.4 12.5 14.1 7.2 9.3 12.5 13.6 5.3 4.8 4.3 3.5 1976 - I II III 76.2 72.6 84.0 59.5 54.6 64.9 58.2 53.6 61.5 1.3 1.0 3.5 10.8 12.3 12.4 12.1 13.4 15.9 6.0 5.6 6.6 TOTAL 1- t o 4 FAMILY MULTIFAMILY 34.1 30.8 28.2 29.6 25.5 23.6 21.4 22.3 21.2 19.0 16.8 16.0 4.4 4.5 4.6 6.3 1970 - I II III IV 23.3 26.9 34.1 37.1 16.7 19.2 24.5 28.1 11.2 13.6 16.2 19.5 1971 - I II III IV 41.8 51.4 56.6 60.3 32.8 40.0 42.2 46.0 1972 - I II III IV 70.6 72.9 75.2 89.3 1973 - I II III IV TOTAL 1969 - I II III IV QUARTER COMMERCIAL 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 Agriculti e, 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. 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 UNITS, S E A S O N A L L Y A D J U S T E D A N N U A L R A T E S PERMITS 1 PERIOD TOTAL 1—FAMILY COMPLETIONS STARTS TOTAL 2 - O R MORE FAMILY 1969 1970 1971 1972 1973 1974 1975 1,324 1,352 1,925 2,219 1,820 1,074 924 626 647 906 1,033 882 644 668 698 705 1,018 1,186 937 431 257 1975 - O c t . Nov. Dec. 1,111 1,127 1,091 794 814 812 317 313 279 1976 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1,147 1,165 1,188 1,082 1,158 1,150 1,215 1,296 1,504 1,492 1,585 851 863 882 803 807 829 870 874 926 998 1,085 296 302 306 279 351 321 345 422 578 494 500 1 I 1 1—FAMILY 2 - O R MORE FAMILY TOTAL 1—FAMILY MOBILE HOME 2 - O R MORE SHIPMENTS FAMILY 1,407 1,434 2,052 2,357 2,045 1,388 1,161 811 813 1,151 1,309 1,132 888 893 656 621 901 1,048 914 450 269 1,399 1,418 1,706 1,972 2,014 1,692 1,296 808 802 1,014 1,143 1,174 932 866 592 617 692 828 840 760 430 413 401 497 576 567 329 216 1,431 1,381 1,283 1,093 1,048 962 338 333 321 1,115 1,386 1,329 738 992 993 377 394 336 235 230 224 1,236 1,547 1,417 1,367 1,422 1,510 1,382 1,537 1,840 1,813 1,705 957 1,295 1,110 1,055 1,065 1,139 1,123 1,171 1,280 1,340 1,237 279 252 307 312 357 371 259 366 560 473 468 1,213 1,299 1,399 1,266 1,360 1,373 1,307 1,401 1,387 1,314 1,445 926 953 1,032 986 934 1,052 1,038 1.094 1,017 976 1,104 287 346 367 280 426 321 269 307 370 338 341 263 287 244 237 260 233 224 252 255 269 251 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 N> T a b l e 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES EXISTING H O M E S NEW HOMES 1 1 PERIOD RATE (IN PER CENT) SPREAD (BASIS POINTS) RATE (IN PER CENT) SPREAD BETWEEN R E T U R N S ON NEW A a a NEW HOMES CONVENTIONAL UTILITY 1 AND HUD(FHA) BOND NEW HOME YIELD SPREAD DISCOUNT (BASIS (PERCENTAGE M O R T G A G E S (IN PER CENT) (BASIS POINTS) POINTS) POINTS) HUD(FHA) INSURED LOANS SECONDARY MARKET CONVENTIONAL LOANS PRIMARY MARKET SPREAD (BASIS POINTS) YIELD (IN PER CENT) 1974 - High Low 9.80 8.55 45 -70 9.80 8.60 50 -70 10.38 8.54 44 -25 6.3 2.3 1 -70 10.46 8.10 1975 - High Low 9.25 8.90 15 -70 9.30 8.95 20 -65 9.74 8.69 31 -91 6.2 2.4 21 —49 9.70 8.94 1975 - Oct. Nov. 9.25 9.20 9.15 3 n. a . n.a. 9.30 9.25 9.20 8 n.a. n.a. 9.53 9.41 9.32 31 n.a. n.a. 4.0 3.1 2.4 -28 -21 -17 9.22 n.a. n.a. 9.05 9.00 8.95 8.90 9.00 9.05 9.05 9.05 9.00 9.00 8.95 8.90 39 42 42 32 5 35 33 58 77 71 91 9.10 9.05 9.00 8.95 9.05 9.10 9.10 9.10 9.05 9.00 9.00 8.95 44 47 47 37 10 40 38 63 82 71 95 n.a. 9.06 9.04 n.a. 8.82 9.03 9.05 8.99 8.93 8.82 8.55 8.45 8.25 40 46 n.a. 24 8 35 27 46 59 26 40 n.a 2.4 2.2 n.a. 2.5 4.1 4.2 3.8 3.3 2.5 4.3 3.6 2.0 - 1 - 4 n.a. 8 - 3 0 6 12 18 45 50 65 8.66 8.58 8.53 8.58 8.95 8.70 8.72 8.47 8.23 8.29 8 .05 n.a. Dec. 1976 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. n.a. 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 point: 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. a Table 16 FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS GOVERNMENT-UNDERWRITTEN DATE O F AUCTION AMOUNT (IN MILLIONS O F DOLLARS) 1976 - High Low OFFERED ACCEPTED 634 ( 5 / 1 7 ) 321 (5/17) 21 (12/27) AVERAGE YIELD CONVENTIONAL AMOUNT (IN MILLIONS O F D O L L A R S ) OFFERED 9 . 2 0 ( 6 / 1 ) 171 ( 9 / 7 ) 19 (12/27) 8.39(12/2% 33 (1/26) AVERAGE YIELD ACCEPTED 127 (11/15) 9 . 3 1 ( 6 / 1 , 6/28) 23 (2/23) 8.90 (12/27) 1 14 28 349.5 146.6 261.2 224.7 98.8 157.5 9.20 9.14 9.12 131.4 77.3 93.6 90.5 70.3 59.2 9.31 9.30 9.31 J u l y 12 26 148.3 311.8 88.4 212.0 9.05 9.04 90.7 130.5 82.0 105.2 9.27 9.23 Aug. 9 23 190.1 171.3 107.4 107.0 9.01 8.97 136.7 162.1 93.4 115.3 9.17 9.14 Sept. 7 20 121.9 99.1 68.8 49.1 8.92 8.84 170.6 151.1 117.8 107.6 9.13 9.09 Oct. 4 18 124.3 111.2 45.3 61.8 8.80 8.70 153.8 143.7 94.4 121.4 9.07 9.02 Nov. 1 15 30 215.3 218.9 59.9 73.2 114.2 33.7 8.67 8.68 8.63 141.7 140.9 70.7 112.2 126.5 58.2 9.00 9.00 8.99 Dec. 13 27 36.0 20.9 22.6 18.9 8.51 8.39 79.7 70.5 68.1 67.3 8.89 1977 - J a n . 10 385.7 285.8 8.46 184.2 132.5 8.81 1976 - June 8.80 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. H.16
@FedFRASER