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DECOSTEOLLBD AFTI® S I X
:!5|

—
;

L.5.8

Confidential (F.RQ

—
'

ttOHTSS

Zj^er.
:

"1

P*' "
*

/973

•-

January

d?

• Is

2,

w

CAPITAL
MARKET
DEVELOPMENTS

Capital Markets Section, Division of Research and Statistics, •
Board of Governors of the Federal Reserve System, Washington, D. C.




197/

I i:-~c, ...
—

\

INDEX
Developments in the Corporate and Municipal Bond Markets
C a p i t a l Market Y i e l d s
C a p i t a l Market Volume
Stock Market
Mortgage Market

SYMBOLS:

e

Estimate

p

Preliminary

r

Revised

n.a.

Not a v a i l a b l e




T A B L E 1: Yields, Volume and Reception
C O R P O R A T E BOND M A R K E T
W E E K ENDING:

1972

YIELDS
MOODY'S
MEW ISSUE
SEASONED
Aaa
i
Aaa
UTILITY
7.28
7.18
7.16
7.12
7.12
6.99
7.09

- Nov.

3
10
17
24

Dec.

1
8
15
22
29

7.05
7.15
7.21

5

n. a.

Jan.

GROSS
OFFERINGS
120
125
170
366
622
340

7.07
7.05
7.08
7.10
7.11

—
—

499r
138
52

n.a.

N E W ISSUE
Aaa

25e

B O N D BUYER
S E A S O N E D 20
B O N D INDEX

71
39
85
84

654
1,548
1,431
1,279

11

58
76
65
68
54

1,203
569
255.
245
518

52e

n.a.

4.90
5.00
4.90
4.85

5.04
5.10
5.01
4.96

1
8
15
22

4.90

4.99

407

4.85
4.90

4.96
5.03

4.95

5.10
5.11

881
575
244

Jan.
1

5

n. a.

n.a.

1

BONDS SCHEDULED
W I T H I N 28 DAYS

n.a.

New series derived b y a d j u s t i n g to a Aaa u t i l i t y b a s i s , new issues of p u b l i c l y - o f f e r e d
c o r p o r a t e b o n d s w i t h call p r o t e c t i o n , rated A, A a , or Aaa b y M o o d y ' s I n v e s t o r s
S e r v i c e (except serial a n d c o n v e r t i b l e issues, offerings of n a t u r a l gas p i p e l i n e and
foreign c o m p a n i e s , and b o n d s guaranteed by the F e d e r a l G o v e r n m e n t ) .
For additional
d e t a i l s and b a c k d a t a , see the S e p t e m b e r 1972 issue of the F e d e r a l R e s e r v e B u l l e t i n .
The Aaa corporate yield series p r e v i o u s l y p u b l i s h e d in the L . 5 . 8 . has b e e n d i s c o n tinued.

2

n.a.

340
331
457
352

3
10
17
24

—

n.a.
n.a.
n. a.

PER C E N T
SOLD BY END
OF W E E K

- Nov.

29

n.a.

, GROSS
OFFERINGS

Dec.

1972

76
75
80
94
100

M U N I C I P A L BOND M A R K E T
VOLUME2

YIELDS
MOODY'S

WEEK ENDING:

VOLUME;2
PER C E N T
SOLD BY END
BONDS SCHEDULED
OF W E E K
W I T H I N 28 DAYS
100
n.a.
n.a.
75
79
n.a.
74

M i l l i o n s of dollars u n l e s s otherwise indicated.
NOTE:

see footnotes to T a b l e 3.




TABLE 2: Details on Inventories

DATE
OFFERED

12/14
12/19

C O R P O R A T E BONDS IN SYNDICATE END OF LATEST W E E K
ORIGINAL
RATING A N D
ISSUER
YIELD CALL PROTECTION
COUPON

AMOUNT
(MIL. $)

53.0
25.0

.

Sedco U.S. Gov't Her. Mar.
F i r s t A m t e n n Co

7.15
7 5/8

7.15
7.63

ESTIMATED PROPORTION SOLD

10 yrs

75%
75%

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST W E E K
ORIGINAL INCREASE R A T I N G A N D
E S T I M A T E D PROAMOUNT
ISSUER
COUPON
YIELD
IN YIELD CALL PROT. PORTION R E L E A S E D

OFFERED

INVENTORIES
MUNICIPALS
BLUE LIST
1
IN SYNDICATE

DATE
1972 - D e c .

1
8
15
22
29

964
1,015
1,090
1,007
n. a.

249
322
382
260
197

1

CORPORATES
IN SYNDICATE
149
85
108
19
19

All figures in millions of dollars.
Blue List is daily average for week ended Friday,except
vhich is daily average of threw days emlvd Wednesday. All other figures arc as of Friday.




for latest week

T A B L E 3: High Grade Bond Yields

DATE

NEW I S S U E
Aaa
UTILITY

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. G O V E R N M E N T
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER1S
SEASONED
MUNICIPALS 4

1970 ^ High
Low

9.43 (6/19)
7.72 (12/11)

8.60 (7/3)
7.48 (12/21)

7.55
6.17

(5/29)
(12/18)

7.12
5.33

1971 - High
Low

8.26
7.02

(7/30)
(2/5)

7.71 (8/13)
7.06 (2/12)

6.51
5.69

(6/18)
(3/23)

6.23 (6/23)
4 . 9 7 (10/21)

1972 - High
Low

7.60
6.99

(4/21)
(11/24)

7.36
7.05

6.19
5.74

(4/14)
(11/17)

5.54
4.96

(4/28)
(12/8)

1972 - Nov.

24

6.99

7.09

5.76

4.96

Dec.

1
8

1.05
7.15

15

7.21

7.07
7.05
7.08

22
29

--

5.82
5.87
5.93
6.03
6.03

4.99
4.96
5.03
5.10
5.11

7.10
7.11

N e w issue A a a u t i l i t y , w i t h call protection, adjusted (as described in
footnote 1 of T a b l e 1) to a A a a basis.
2
W e e k l y average of daily figures. A v e r a g e term of bonds included is
2 2 - 2 4 years.
3
W e e k l y a v e r a g e of daily figures.
4
T h u r s d a y figures. T h e average rating of the 20 bonds used in this index
falls m i d w a y between the four top groups as classified by M o o d y ' s Investors Service.
N o t e - - H i g h s and lows are for individual series and may be on different dates
for different series.
1




(5/29)
(12/11)

(4/13)
(12/7)

T A B L E 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS P R O C E E D S
CORPORATE

PERIOD

1

STATE A N D LOCAL

2

1972

1971

1970

-T,205
3,369
3,229

3,115
3,000
6,075

2,636
1,802
3,539

April
Hay
June

3,275
3,598
4,341

4,042
3,300
4,375

3,170
3,909
3,389

j
J
j

1,988
2,002
2,260

1,891
2,167
2,013

1,647
996
1,085

July
August
September

3,582
3,013
2,750

4,147
2,532
3,768

2,768
2,274
3,518

!
|

1,800
1,951

1,989
1,903
2,098

1,348
1,359
1,758

October
November
D ecember

3,500e
3,050e

3,387^
3,704
3,673

3,777
4,182
3,980

1,728
2,264
2,068

1,924
1,748
2,190

January
February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
T h r e e quarters
Year

1
2

1972
1,776
2,002
2,237

j

1971
2,732
1,851
2,258

1,340
1,214
1,555

1,693
2,155
l,800e

1970

9,803
11,214
9,345

12,190
11,688
10,447
10,764

7,977
10,468
8,560
11,939

6,015
6,250
5,444

6,841
6,081
5,990
6,060

4,109
3,728
4,465
. 5,862

21,017

23,844
34,325
45,089

18,445
27,005
38,944

12,265
17,709

12,912
18,902
24,962

7,837
12,302
18,164

30,362

S e c u r i t i e s arid Exchange C o m m i s s i o n estimates of gross proceeds.
Investment Bankers A s s o c i a t i o n of A m e r i c a estimates of principal amounts.




,

T A B L E 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

QUARTER
OR
MONTH

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
BONDS
AND
MEMO:
PRIVATELY
PUBLICLY
PFD.
ISSUES INCLUDED
PLACED
OFFERED
STOCK
FOREIGN ] C O N V E R T I B L E

GROSS PROCEEDS BY
T Y P E OF ISSUER

MFG.

PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS 1

IV

10,447
10,764

4,725
5,135

1, 641
2 439

4, 079
3,193

114
133

652
767

2,202
2,543

2, 651
3, 041

2,,263
1,,053

3,331
4,164

1972

- I
JI
III

9,805
11,214
9,345

5,361
4,634
4,192

1 593
2 781
,893
1.

2, 851
3 798
3,,259

74
245
68

511
449
838

1,525
2,109
1,749

2,,261
3,,495
2,,701

1 ,476
1 ,369
856

4,541
4,240
4,038

1971

- Oct.
Nov.
Dec.

3,387
3,704
3,673

1,942
2,003
1,190

723
433
1 ,283

723
,269
1,
,201
1.

59
62
12

222
395
150

662
811
980

933
1,,217
891

432
269
352

1,360
1,408
1,450

1972

- Jan.
Feb.
Mar.

3,205
3,369
3,229

1,767
1,907
1,677

604
412
577

834
1 ,041
976

59
12
3

195
83
233

392
529
604

533
988
740

752
498
227

1,529
1,354
1,658

3,275
3,598
4,341
3,582
3,013
2,750
3,500
3,050

1,622
1,676
1,336
1,807
1,523
862
1,650
1,350

789
774
1 ,218
657
431
805
650
650

15
100
130
3
13
52

92
226
131
450
183
205
150
150

581
1 ,219
761
738
767
1 ,538
798
574
635
559
616
1 ,268
350
1 ,200
885
, 125

178
391
800
586
237
33
360
760

1,297
1,708
1,235
1,624
1,581
833
1,590
1,280

1971

-~TLl

Apr.
May
June
July
Aug.
Sept.
Oct.e/
Nov.e/
1

!

864
1 ,148 1 ,786
1 ,118
1 ,058
1 ,083
1 ,200
1 ,050

O t h e r issuers are extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source:
Securities and Exchange C o m m i s s i o n .
Quarterly supplements are available.




T A B L E 6:

Large Long term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1
D e c . 4 through D e c . 29, 1972

TYPE

2

Kentucky Utilities
Guardian Mtge Investors
Duke Pwr
C a m e r o n F i n a n c i a l Corp
G e n e r a l P u b l i c U t i l i t i e s Co
S a n D i e g o G a s & Elect
C e n t e n n i a l Corp
F i r s t Va. B a n k s h a r e s Corp
Arkansas P w r & L t .
Arkansas P w r & Lt.
Tampa Elect
Pacific G a s & Elect
United T e l e of Fla.
N a t i o n a l R u r a l U t i l Coop F i n
Talley Industries
S o u t h w e s t F o r e s t Ind.
BankAmerica
Georgia Pwr.
Union Electric
Union Electric Co.
Barmes Mortgage Investment
Energy Ventures Inc.
A v c o Financial
Duquesne Light
Duquesne Light
McCulloch Prop Credit
S e d c o M a r i t i m e Inc.
Sedco M a r i t i m e
Z a p a t a E x p l o r a t i o n Co.

1st m t g e
Notes
1st m t g e
Debs
Com.
Com stk
C o n v debs
Notes
Bonds
Pref stk
C o m stk
P r e f stk
1st mtge
Coll trust
Debs
I
P r e f stk
Notes
1st mtge
P r e f stk
P r e f stk
B e n e . int.
Com
Debs
1st mtge
Com stk
Bonds
Gov't gar.
G o v ' t gar.
C o n v debs

G a n a n d a D e v e l Corp
First A m t e n n Corp
First Nat'l Boston
C o n t i n e n t a l Illinois R e a l t y

Gov't gar
Bonds
Bonds
Bonds




| COUPON

AMOUNT
(MILLIONS

1
ISSUER

MATURITY

OF
DOLLARS)
35.0
25.0
75.0
40.0
34.3
30.8
25,0
25.0
15.0
20.2
18.8
55.8
15.0
50.0
25.0
20.0
100.0
150.0
55.0
55.0
35.0
19.0
50.0
40.0
35.0
30.0
56.0
22.0
25.0
22.0
25.0
100.0
25.0

2002
1979
2002
2002

|
RATE OR
i
NET INTER- '
EST COST
]
7
7
7
7

3/8
1/2
3/8
1/2

OFFERn.<;
YIELD
7.23 ~
7.55
7.33
7.55

MOODY'S
RATING
Aa
—

Aa
—

---

1992
1982
2002
--

--

4.00
7.00
7 1/2
7.40--

7 1/2
7 1/2
•8 1/8
6.00
6 5/8
7 1/2

8.00
7.43
7.43
7.17
6.00
6/70
7.50
7.44

—

2002
2007
1997
--

1980
2002

--

—
—

A
--

—

--

—

--

---

7 5/8
7 1/4

1982
1992

7. 70
7.15

1979
1992
2002
1980
1979

A
A
Baa

—

1997
2002

—

--

--

--

—

--

A

--

7.44

—

.

--

4.00
7.00
7.40
7.38

--

5 1/2
7.15
7 5/8
6 3/4
7 5/8

7 6/3
7.32
7.70
7.15
5.70-6.55
5.50
7.15
7.63
6.80
7.63

Aa

Aaa
Aaa
----—

.

T A B L E 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1

!
ISSUER
S t a t e arid L o c a l
Atlanta, Georgia
Atlanta, Georgia
M a s s St. C o l l . B l d g . Auth
Prince Georges Co., Md.
New Y o r k C i t y
Piano ISD, Texas
U n i v e r s i t y , Texas
H.A.A.
B e a v e r C o . Ind. D e v . A u t h , P a .

TYPE

2

AMOUNT
(MILLIONS
OF
DOLLARS)

Rev-ref
8.8
30.3
Rev-ref
Rev.
33.1
32.5
G.O.
294.0
G.O.
G.O.
10.0
Rev.
17.0
Bonds
268.2
Pol. C o n t
Rev.
22.5
26.9
L o s A n g e l e s P a r k i n g A u t h , C a l i f .Rev.-ref.
G.O.
75.0
New Jersey
G.O.
15.0
M a r i c o p a C o . , Ariz
G.O.
38.0
Richmond, Va.
R e f rev
8.2
Los Angeles DWAP
R e f rev
44.7
Los Angeles DWAP
R e f rev
55.1
Los Angeles DWAP
R e f rev
8.2
L o s Angeles DWAP
Rev.
32.8
New Y o r k St. D o r m i t o r y A u t h
G.O.
14.4
Penna H i g h e r Ed. F a c . A u t h
Swr rev
15.8
R o c h e s t e r , N. Y .
G.O.
19.3
R h o d e I s l a n d , S t a t e of
Rev.
42.9
E r i e C o . Hosp Auth, P a .
Rev.
New Jersey Finance Agency
49.0
G.O.
50.0
Puerto R i c o
G.O.
20.0
Newark, N.J.




MATURITY
1974-1983
2000
1973-2013
1974-1998
1974-2013
1975-1998

COUPON
R A T E OR
N E T INTEREST C O S T

|
j iilTKRI
II. r
| Y1KLD

MOODY'S
RATING

4.98
4.94

3.50-5.00
5.64
2.90-5.25
3.10-5.40
3.50-6.00
3.50-5.50

Baa
Baa
Aa
A
Baa-1
Baa-1

4.88

2.50-5.00

Aaa

——

5.60
4.40-5.05
3.80-5.00
3.10-4.30
3.10-4.90

-—

-—
—

--

1973-2013
1997
1973-1992
1978r2003
1974-1983
1974-1993
2000
1978-1992
2010
1981-1990
1974-2003
1974-2013
1973-1992
1973-1992
1973-2001
1974-2021
1987
1974-1993

4.82
4.36
4.57
5.08 .
5.08
5.08
--

5.26
5.28
-—
--

5.66
5.26
5.21
--

Aaa
Aa
Aa
• -

3.80-4.95
5.20
4.20-4.85
3.30-5.45
3.25-5.50
3.00-4.95
3.70-5.00
-——

3.40-5. 55
4 . 0 0 - 6 . 00

-—
---

A
A
Aaa
Aa
A
Aa
A-l
Baa

/
T A B L E b:

ISSUER

Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury)'

1

TYPE

S t a t e and L o c a l
O k l a h o m a Cap Imp A u t h
N o r t h w e s t B e r g e n Co., Sewer

Rev
G.O.

2

AMOUNT
(MILLIONS
OF
DOLLARS)
13.5
22.5

MATURITY

1976-2003
1983

COUPON
|
RATE OR
• M-TKRN E T INTERI;. (:
EST C O S T
j VILL1)
5.14
5.35

MOODY'S
RATING

3.70-5. 25
3.25-5. 95

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, C.O. denotes general obligation;
Kev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut. , revenue bonds secured only by income from quas i-utilities; R e v . - 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.

A
A

11

T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1

ISSUER

* U n i o n T a n k Car
Public Svc of Indiana
Penn Pwr & Lt
F l a Pwr & Lt
D u k e Pwr
* C e n t r a l Pwr & Lt
C e n t r a l Pwr & Lt
M o n t a n a Pwr
O k l a Gas & Elect
Maine Yankee Atomic
M a i n e Y a n k e e Atomic
*Pan American World Airways
Detroit E d i s o n
C i n c i n n a t i Gas & Elect
Philadelphia Elect
N o r t h e r n States Pwr
N e w Y o r k State Elect & Gas
* T e x a s Pwr & Lt
C o n t i n e n t a l Illinois Corp
Borg W a r n e r A c c e p t a n c e Corp
* C B T Corp
* J o h n D e e r e Credit Co
* W a l t e r K i d d e & Co




TYPE

Bonds
Pref
Bonds
Bonds
Cm
Bonds
Pref
Bonds
C m (rts)
Bonds
Pref
Conv d e b
Bonds
Cm
Bonds
Bonds
Cm
Bonds
Notes
Bonds
Bonds
Bonds
Bonds

AMOUNT
(MILLIONS
OF
DOLLARS)

A P P R O X I M A T E DATE
OF OFFERING

25.0
35.0
80.0
70.0
75.0
25.0
26.0
25.0
45.0
15.0
15.0
75.0
100.0
42.0
100.0
50.0
25.0
50.0
100.0
25.0
25.0
75.0
65.0

January
January
January
January
January
January
January
January
January
January
January
January
January
January
January
January
January
January
January
January
January
INDEF
INDEF

4
4
8
9
9
10
10
10
10
11
11
15
15
18
22
24
24
30

12

T A B L E 7: Forthcoming Large Long-term Public. Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)

ISSUER

TYPE

S t a t e and L o c a l

AMOUNT
(MILLIONS
OF
DOLLARS)

As o f Dec 2 9 ,

A P P R O X I M A T E DATE
OF OFFERING

G.O.
G.O.
Rev.
Rev.
Rev.
Rev.
G.O.
Rev.
Rev.
Bonds
G.O.
Sur Rev
Elec R e v

37.0
20.0
31.0
125.4
75.0
18.0
37.6
10.5
51.4
129.5
20.0
25.0
50.0

January
January
January
January
January
January
January
January
January
January
January
February
February

G.O.

^Wisconsin
Alaska
* N e w Y o r k State D o r m . . A u t h
Richmond M e t r o A u t h , V a .
* S a l t R i v e r Project, A r i z .
*Billings, Mont.,
* D a l l a s Co., Texas
G a r l a n d , Texas
* L o s A n g e l e s D e p t , A i r p o r t , Cal.
N e w Y o r k State
^ T o l e d o City S/D, O h i o
H a m p t o n R d s S a n i t a t i o n Dist, Va.
Los A n g e l e s D e p t of W t r & Pwr

1972

100.0

January

9
9
9
10
10
11
11
16
17
18
7

Other
T.V.A.

*
l
2

16

Included in table for first time.
Includes corporate and other issues of 515 million and over; State and local
G o v e r n m e n t issues of S10 m i l l i o n and over.
Includes foreign government and International Bank for Reconstruction and
D e v e l o p m e n t issues and n o n - g u a r a n t e e d issues of Federal A g e n c i e s .




13

Table 8

STOCK PRICES AND VOLUME
STOCK PRICES1'

TRADING VOLUME 2 '

DATE
NYSE INDEX 3*

DJ. INDUSTRIALS

AMEX *

NYSE

AMEX

1970 - High
Low

52.36 (1/5)
37.69 (5/26)

842.00(12/29) 27.02 (1/8)
631.16 (5/26) 19.36 (5/27)

18.5 (12/4)
7.8 (8/14)

7.1 (1/2)
1.8 (8/14)

1971 - High
Low

57.76 (4/28)
48.73 (1/4)

950.82 (4/28) 26.68 (4/28)
797.97(11/23) 22.72 (1/4)

22.1 (2/12)
11.0 (9/17)

6.7 (2/5)
2.7 (8/13)

1972 - High
Low

65.14 (12/11) 1036.27 (12/11 )28.53 (4/14)
56.23 (1/3)
889.30 (1/3) 25.61 (1/3)

21.8 (11/10)
11.2 (9/8)

7.4 (3/10)
2.6 (9/8)

1972 - Nov.

3
10
17
24

62.52
62.33
63.25
64.12

984.12
995.26
1005.57
1025.21

26.14
26.14
26.15
26.32

18.4
21.8
20.1
19.8

4.0
4.3
4.2
4.2

Dec.

1
8
15
22
29

64.29
65.01
64.63
63.38
64.48

1023.93
1033.19
1027.24

26.61
26.78
26.53
26.25
26.36

19.3
18.7
17.4
16.8
19.3

4.8
4.9
4.0
4.1
6.7

1004.21
1020.02

'

1.

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

2.

NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Volume figures are daily averaged for the entire week, (millions of shares).
Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or
In recent years, however abbreviated trading to the extent, and over the time
Hours/_
Days/
From
Through:
Day
Week
January 3, 1969
July 7, 1969
January 2, 1970

July 3, 1969
December 31, 1969
May 1, 1970

3.

12/31/65 - 50

4.

Average dollar value of shares listed.




4
4-1/2
5

5
5
5

27-1/2 hours per week.
periods, shown below:
Hours/
Week
20
22-1/2
25

u
T A B L E 9: Security Credit

END O F PERIOD
Outstanding:
1971 - O c t .
Nov.
Dec.
1972

- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Outstanding
Changes
1972 - Oct.
Nov.
Dec.
1972

1

2
3

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

C R E D I T EXTENDED T O
MARGIN CUSTOMERS BY:
B R O K E R S 1 | BANKS 2 1 T O T A L

CUSTOMERS'
NET DEBIT
BALANCES

NET C R E D I T
C U S T O M E R S ' N E T EXTENDED BY
BROKERS A N D
FREE C R E D I T
DEALERS 3
BALANCES

4,950
4,910
5,400

2 ,410
2 ,400
2 ,440

7,360
7,310
7,840

(4)
(4)
(4)

2,160
2,170
2,220

(4)
(4)
(4)

5,700
6,180
6,620
7,010
7,200
7,510
7,660
7,780
7,800
7,800

2 ,490
2 510
2 520
2 530
2.,560
2.,650
2.,690
2.,780
2,,830
2,,850

8,190
8,690
9,140
9,540
9,760
10,160
10,350
10,560
10,630
10,650

(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

2,488
2,542
2,512
2,459
2,330
2,231
2,245
2,117
2,056
2,097

(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

20
-40
490

-20
-10
40

-50
530

—

300
480
440
390
190
310
150
120
20

50
20
10
10
30
90
50
90
50
20

350
500
450
400
220
400
200
210
70
20

--

—

--

--

—

-—
--—
—
--

60
10
50
268
54
-30
-53
-129
-99
14
-128
-61
-41

-—
--—

-—
---

---

M a r g i n d e b t , as reported by the N e w Y o r k Stock Exchange. A l t h o u g h m a r g i n debt
until M a r c h 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."
T h e d i f f e r e n c e b e t w e e n customers' net debit balances and customers' net free credit b a l a n c e s , this figure r e p r e s e n t s the net credit extended by brokers and
dealers to the n o n f i n a n c i a l public.
NOTE:
W i t h the exception of bank loan data, figures are supplied by the New York
Stock Exchange and are end of m o n t h data.
Bank loans are for weekly reporting
large commercial banks.
B r o k e r data includes loans for regulated securities; bank
data includes loans for the purpose of purchasing or carrying any security, w h e t h e r

4

regulated or not.
Series d i s c o n t i n u e d




T A B L E 10:. Savings Flows at Nonbank Depositary Intermediaries
($ m i l l i o n s )

DATE

1969
1970
1971

M U T U A L SAVINGS B A N K S
NET
R E G U L A R DEPOSITS 3
NEW
ANNUAL
MONEY2
GROWTH
NET
1
RATE
FLOW

2,549
4,517
9,623

September
October
November
1972 - S e p t e m b e r
O c t o b e r ja/
N o v e m b e r e/

793
382
631
1,025
469
625

4.0
6.8
13.5

-—
-—

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
ANNUAL
NET
MONEY 2
GROWTH
1
FLOW
RATE
Not Seasonally Adjusted
4,068
3.1
-1,003
10,965
8.1
5,285
28,244
19.4
20,652

-763
936
5,678

105
224
512

2,670
1,600
1,562

223
292
n.a.

3,395
2,054
1,700

--

1,814
2,849
3,432
2,232
2,832
2,538
1,854

--

—
--

TOTAL
DEPOSITS
NET
FLOW

6,617
15,482
37,867

ANNUAL
GROWTH
RATE 1

3.4
7.7
17.5

NET
NEW
MONEY 2

-1,766
6,231
26,330

1,091
1,504
1,484

3,463
1,982
2,193

1,196
1,728
1,996

1,486
1,881
n. a.

4,420
2,529
2,325

1,717
2,173
n.a.

Seasonally A d j u s t e d
1972 - M a y
June
July
Augus t
September
O c t o b e r ja/
N o v e m b e r e/

576
937
798
665
917
698
652

8.2
13.2
11.1
9.2
12.6
9.5
8.8

—
-—
--

.

11.7
18.2
21.5
13.7
17.3
15.2
11.0

--——
-—
--

2,390
3,786
4,230
2,897
3,759
3,236
2,506

10.5
16.6
18.3
12.3
15.8
13.5
10.3

A n n u a l growth rate for m o n t h l y data is the a n n u a l i z e d m o n t h l y percentage increase in deposits.
N e t V e w M o n e y is new deposits net of both w i t h d r a w a l s and interest.
Data for S&Ls are for
insured a s s o c i a t i o n s only, which represent 9 6 % of industry total resources.
Regular d e p o s i t s at m u t u a l savings banks exclude items such as C h r i s t m a s club and certain
escrow a c c o u n t s , which represent a very small part of total deposits.
SOURCE:
N a t i o n a l A s s o c i a t i o n of M u t u a l Savings B a n k s and Federal Home Loan Bank Board.




---

T A B L E 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

OUTSTANDING COMMITMENTS
ALL
MUTUAL
SAVINGS
SAVINGS &
BANKS
LOAN
(N.Y. S T A T E )
ASSOCIATIONS

I
|
TOTAL

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. S T A T E )

(Billions of D o l l a r s , Sea sonally A d j u s t e d )
Sept.
Oct.
Nov.
Dec.

l

Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.

17.0
18.3
19.5
20.5
21.7
21.7
22.0
22.7

13.3
14.2
15.2
16.0
17.1
17.2
17.5
18.0

Sept. r/
Oct. j>/

>72

16.4
16.3
16.6
16. 6

23.3
23.4

18.3
18.4

13.2
13.1
-13.2
13.1

3.2
3.3
3.4
3.6
3.7
4.1
4.3
4.5
4.6
4.5
4.5
4.7
5.0
5.0

.07
.02
.20
.09

-.07
-.05
.08
-.06

.14
.07
.12
. 15

.30
1.34
1.19
.99
1.22
.40
.33
.67
.59
.11

.12
.97
.97
.79
1.13
.48
.39
.42
.33
.14

.18
.37
.22
.20
.09
-.08
-.06
.25
.26
-.03

Based on data from Federal H o m e L o a n B a n k Board and Savings B a n k s A s s o c i a t i o n s of
N e w Y o r k State.
D a t a for savings banks and S&L's include a m i n o r amount of n o n residential commitments.
S & L c o m m i t m e n t s include loans in process.
Net changes
are d e r i v e d d i r e c t l y f r o m u n r o u n d e d o u t s t a n d i n g s levels as reported and after
s e a s o n a l a d j u s t m e n t by F e d e r a l R e s e r v e .
Subtotals m a y not add to totals b e c a u s e
of r o u n d i n g .




17

T A B L E 12: Net Change in Mortgage Holdings

DATE

1

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
COMMERCIAL
SAVINGS
LOAN
BANKS
BANKS
ASSOC.

TOTAL
INCLUDING
FNMA-GNMA

LIFE
INSURANCE
COMPANIES

Not Seasonally Adjusted
23,781
24,074
21,736
41,647

1968
1969
1970
1971
1972 - M a y
June
July
Aug.
Sept.
Oct.
Nov.

21,273
19,699
16,827
39,259

6,677
5,404
2,462
9,940

4,958
5,724
4,872
5,931
5,286
n. a.

4,674
5,692
4,717
5,563
4,918
4,684
n. a.

1,500

3,847
4,371

3,558
4,118

3,456
3,828
4,464
4,363
4,908
5,189
4,731
5,471
4,981

3,250
3,550
4,329
4,327
4,521
5,060
4,593
5,179
4,714
4,738

1,600
1,500

1,600
1,400
1,400
1,500

2,787

2,682
1,845
3,938
454
585
380
553
502
472

9,350
9,561
10,172
24,160

2,459
2,052
2,348
1,221

2,508
4,375
4,909
2,388

2,720
3,453
2,758
3,313
2,926
2,673
2,692

24
54
79
97
90
139

284
50
155
368
370
n. a.

Seasonally A d j u s t e d
1971

Nov.
Dec.

1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.

909

862
1,112
1,178
1,264
1,361
1,434
1,489
1,451
1,477
1,155
1,393
1,524

(r)

468
524

2,101
2,367

80
365

289
253

290
315
464
400
453
516
363
515
537
484

1,871
2,075
2,596
2,481
2,567
2,959
2,678
3,108
2,911
2,726
2,856

-23
-18
5
85
67
96
101
79
111
135
i. a.

206
278
135
36
387
129
138
292
267
n. a.

M o n t h l y data for c o m m e r c i a l banks based on Federal Reserve estimates benchmarked
to C a l l Report data on real estate loans outstanding as available.
Other data
_
_
derived from m o r t g a g e debt outstanding as reported separately by National Assn.
of M u t u a l Savings B a n k s , Federal H o m e L o a n Bank Board, Institute of Life Insurance
and, through August 1968, the Federal N a t i o n a l M o r t g a g e A s s o c i a t i o n , and thereafter by FNMA and the Government National M o r t g a g e A s s o c i a t i o n .
Data for mutual
savings banks and for L i f e Insurance companies m a y differ somewhat from those
derived from regular quarterly series because of minor conceptual differences for
which a d j u s t m e n t s are not made in the monthly series. A l t o g e t h e r , these groups
accounted for 87 per cent of the net increase estimated for all holders in 1967.




18
T A B L E 13: Net Increases in Mortgage Debt Outstanding
B i l l i o n s of dollars, SAAR TOTAL

RESIDENTIAL3

1- to 4 FAMILY

1967 - I
II
III
IV

16.0
20.8
26.3
27.2

10.3
14.0
18.9
19.7

7.0
10.6
15.1
15.9

3.3
3.4
3.8
3.8

1968 - I
II
III
IV

28.1
26.4
25.8
29.4

19.4
18.2
17.4
20.2

16.2
15.0
13.9
16.3

1969 - I
II
III
IV

31.8
29.1
26.2
24.9

23.6
21.5
19.0
18.2

1970 - I
II .
, H I
IV

20.6
22.9
29.1
31.3

1971 - I
II
III
IV
1972 - I
II
Ille

QUARTER

MULTIFAMILY

COMMERCIAL

, MULTI-AND
COMMERCIAL

FARM

3.9
5.0
4.9
4.7

7.2
8.4
8.8
8.5

1.8
1.8
2.5
2.8

3.2
3.2
3.5
3.9

6.4
6.0
6. 6
7.3

9.5
9.2
10.1
11.2

2.3
2.2
1 8
1.9

19.2
16.8
14.4
13.0

4.4
4.7
4. 7
5.3

6.1
5.4
5.4
5.2

10.5

2.2

10.1
10.0
10.5

2.2
1. 7
1.4

14.2
16.9
21.8
22.5

9.1
11.5
15.5
16.0

5.1
5.4
6.3
6.5

4.8
4.6
5.2
6.7

9.9
9.9
11.5
13.2

1.5
1.5
2. 1
2.2

37.1
47.8
53.6
53.4

26.6
36.1
40.1
40. 1

18.5
26.4
31.4
31/4

8.1
9.7
8.7
8.7

8.3
9.4
11.2
10.8

16.3
19.1
19.9
19.5

2.2
2.3
2.3
2.5

61.2
64.9
66.2

43.9
47.3
48.4

34.3
37.4
38.0

9.6
9.9
10.4

14.8
14.9
14.9

24.4
2 4 J3
25.3

2.6
2.6
2.9

•K a n s a s
farm m o r t g a g e debt by type of property, w h e r e not available, and Interpolations

R e s i d e n t i a l m o r t g a g e debt includes nonfarm only and is sum of 1-to 4- family
and m u l t i f a m i l y m o r t g a g e debt combined.
'




T A B L E 14: FNMA Weekly "Auction" Results

WEEK
ENDED
1972 - J u l y
Aug.

:.
Sept.

Oct.

,
Nov.

.
Dec.

24

C O M M I T M E N T S IN $ M I L L I O N S
ACCEPTED
1-YEARN
906TOTAL
TOTAL
M0NTH & OVER
DAY
OFFERED
123.9

113.0

113.0

IMPLICIT Y I E L D 2 ( p e r c e n t )
90DAY

6MONTH

1-YEAR
& OVER

1

7.62

—

--

--

—

--

•- —

--

7
21

106.2
114.6

81.7
87.2

81.7
87.2

5
18

220.6
295.9

151.2
148.1

151.2
148.1

2
16
30

352.8
271.2
186.4

211.5
224.9
162.7

211.5
224.9
162.7

13
27

78.7
60.8

49.2
36.2

49.2
36.2

—
—

__

11
26

82.2
108.7

42.4
66.3

42.4
66.:3

—

--

-——
---

--

--

7.63
7.62
7.63
7.65
7.69
7.72
7.72
7.71
7.69
7.67
7.67

Note:
Under the FNMA auction system, approved sellers of G o v e r n m e n t u n d e r w r i t t e n m o r t g a g e s bid, for FNMA forward purchase commitments.
&!5f§idSiS?SfiiIS
§§Mr6tocf^aassum?ngCprepayment£§i a n d
15 y e a r s for 30-year G o v e r n m e n t - u n d e r w r i t t e n mortgages.
Y i e l d s shown
are gross, b e f o r e d e d u c t i o n of 38 basis points fee paid by investors
to servicers.




T A B L E 15: Private Housing Starts and Permits
STARTS.
SEASONALLY A D J U S T E D
ANNUAL RATE
T O T A L 1-FAMILY 2 OR M O R E

2 ,228 1 ,242
2 ,457 1,
,347

1971

-November
December

1972

-January
2 : ,487
February
2 ; ,682
2.
March
,369
April
z:
,109
May
2.
,350
June
2,,330
July
2,,218
August
,2,
,484
September j 2 j
,397
October
2,,435
November
2, 445

I,,415

1 ;,325
,302
1,
i:
,167
i 3,344
,296
i,
i 3,289
i,,410
i,,383
i,,299
i, 345

TOTAL

UNADJUSTED
T Y P E OF F I N A N C I N G
FHA
VA I
OTHER

BUILDING.
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)

985
1 ,110

176,.4
152,.1

47,.2 9,
.1
85..4 7,
.4

120 .1
59..3

2,051
2,142

J : ,071
1 ,357
1 ;,067
942
,006
1.
,034
1,
929
1,
,074
la,016
1,,136
1,,100

150..9
153..6
205..8
213.,2
227.,9
226.,3
207.,5
231. 0
204. 4
215. 5
190. 9

.5
37.,4 7,
.0
27.,8 8.
37.,710..5
29.,1 8.
,5
32.,4 9.
,4
31. 9 9. 6
26.,2 9. 4
30. 3 9. 9
28. 2 8. 9
25. 4 8. 5
22. 1 8. 1

106.,0
117..8
155.,7
172.,9
186.,1
184. 8
171.,9
190. 8
167. 3
181. 6
160. 7

2,204
2,056
2,007
1,991
1,955
2,121

2,108
2,237
2,265
2,216
2,163

T o t a l starts are Census estimates including farm for both permit-issuing and
noi,-issuing areas. A dwelling unit is started when excavation begins; all units
FHA and VA
in an apartment structure are considered started at that time.
starts are units started under commitments by these agencies to insure or guarantee the m o r t g a g e s . A s reported by FHA and VA, a unit is started when a field
office receives the first c o m p l i a n c e inspection report, which is m a d e before
footings are poured in some cases but n o r m a l l y after the foundations have been
completed.
O t h e r 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 m o r t g a g e s and units without m o r t g a g e s .
Building permits are Census estimates based on 13,000 or all known permitissuing places. U n l i k e starts, s e a s o n a l l y adjusted building permits reflect
direct a d j u s t m e n t for d i f f e r e n c e s in the n u m b e r of days per month, as w e l l as
other d i f f e r e n c e s in timing and coverage.




21
TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES
DATE
30-year

2

1

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA M O R T GAGES 5

NEW
ISSUE
Aaa
UTILITY
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES 6

1970 - High
Low

9.29
8.40

8.60
8.30

-.10
-.74

9.43
7.72

.37
.70

1971

- High
Low

7.97
7.32

7. 95
7.55

.28
-.19

8.26
7.02

.52
-.36

1971 - Nov.
Dec.

7.62
7.59

7.75
7.70

.13
.11

7.38
7.28

.24
.31

1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
August

7.49
7.46
7.45
7.50
7.53
7.54
7.54
7.55

.11
.14
.10
.10
.07
.06
.11
.10
.14

7.21
7.34
7.24
7.45
7.38
7.32
7.38 ;
7.37
7.40

.28
.12
.21
.05
*15
:22
.16
.18
.16

.13
.13

7.38
7.09

.19
.61

September
October
November

1

2

3

4
5
6

7.56

7.60
7.60
7.55
7.60
7.60
7.60
7.65
7.65
7.70

7.57
7.57

7.70
7.70

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.
Separate
data available for 25-year a n d — b e g i n n i n g July 1 9 6 1 — 3 0 - y e a r mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15 years for 30-year mortgages.
Based on FHA-field-office opinion on typical contract interest rates (rounded)
on conventional first mortgages prevailing in the market areas of insuring
offices.
See note for Table 1.
Yield spread equals conventional mortgage rate less FHA secondary market yield.
Yield spread equals FHA secondary market yield less new Aaa corporate bond
yield.




TABLE 17: Conventional Mortgage Terms

1

EXISTING HOMES
FEES &
LOAN/
CONTRACT CHARGES EFFEC- MATU- PRICE
(PER
RATE
RATIO
TIVE
RITY
CENT) RATE
(YEARS) (PER
(PER
CENT)
CENT)
2
3

NEW HOMES
FEES &
CONTRACT CHARGES EFFEC- MATURITY
(YEARS)
(PER
RATE
TIVE
CENT) RATE
(PER
CENT)
3
2

LOAN/
PRICE LOAN
RATIO AMT.
(PER ($000)
CENT)

7.65
7.62

0.87
0.93

7 .79
7 .77

26.7
26.6

75 .4
.5
74,

27 .3
26,
.5

7.56
7.51

0.79
0.78

7.69
7.64

24 .6
24,.6

74.6
74.6

23.2 '
23.9 ,

7.62
7.45
7.38
7.38
7.40
7.41
July
7.43
Aug.
7.45
Sept.
7.43
Oct. r/ 7.48
Nov. £ / 7.50

0.95
1.02
0,84
0.83
0.84
0.85
0.83
0.86
0.86
0.88
0.91

.78
7.
,61
7.
.52
7.
.51
7.
.53
7.
,55
7.
7. 56
7. 59
7. 57
7. 62
7. 65

26.5
27.0
27.2
27.2
27.2
27.2
27.2
27.5
27.3
27.2
27.5

75.
.0
76.,5
76.,2
76. 0
76.,2
76. 5
77. 0
77. 5
77. 5
77. 3
77. 3

.6
27.
27..8
28.,2
28.,5
28.,5
27. 8
28. 2
27. 9
27. 9
27. 4
28. 0

7.45
7.35
7.31
7.30
7.33
7.36
7.37
7.39
7.42
7.43
7.44

0.82
0.79
0.77
0.78
0.77
0.78
0.83
0.81
0.83
0.84
0.84

7.58
7.48
7.44
7.42
7.46
7.49
7.50
7.52
7.55
7.57
7.58

24.,7
25.,4
25.,1
25. 2
25.,2
25. 5
25. 6
26. 3
26. 2
26. 1
26. 3

74.7
75.8
75.6
75.3
75.4
76.1
76.2
76.5
76.5
76.3
76.8

24.1
24.8
24.4
24.9
24.6
25.2
25.2
25.4
24.8
25.0
25.4

DATE

1971
Nov.
Dec.

1972
Jan.
Feb.
March
April
May

LOAN
AMT.
($000)

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 o n l y b a s e d 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
interest rate.




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