Full text of H.16 Capital Market Developments : January 24, 1972
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I DECONTROLLED AFTER SIX MONTHS ; 68j@Sirti L.5.8 Confidtntiol (F.R.) . I '/• f . % i) ^ J a a u a r j 2 4 , 1972 APITAL MARKET DEVELOPMENTS 1 INDEX 3-5 D e v e l o p m e n t s in t h e C o r p o r a t e and M u n i c i p a l B o n d M a r k e t s 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 V o l u m e 14-17 S t o c k Market 18-33 M o r t g a g e Market SYMBOLS: e Estimate p Preliminary r n.a. Revised Mot a v a i l a b l e T A B L E 1: Y i e l d s , Volume and Reception YIELDS MOODY'S SEASONED NEW ISSUE 1 Aaa WEEK ENDING 3 10 17 24 31 7.18 7.08 7.03 6 14 20 27 7.00 6.86 7.01 n.a. 1971 - Dec. 3 10 17 24 31 YIELDS MOODY'S BOND BUYER SEASONED 20 SEASONED BOND INDEX 5.20 5.44 5.23 5.00 5.21 5.00 5.13 5.00 5.02 4.75 Jan. 6 14 20 27 1971 - Dec. Jan. WEEK ENDING — — 4.75 4.65 4.90 CORPORATE BOND MARKET VOLUME 2 PER CENT 1 GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK | WITHIN 28 DAYS 7.28 7.27 7.24 7.23 7.22 7.19 7.17 7.16 n.a. 5.03 4 . 99 5.17 n.a. ! 1 213 607 453 45 0 85 64 71 100 0 514 598. 2356 500e » 65 76 68 n.a. n.a. n.a. n.a. MUNICIPAL BOND MARKET VOLUME2 PER CENT1 GROSS SOLD BY END j BONDS SCHEDULED OFFERINGS OF WEEK J WITHIN 28 DAYS 404 86 1,472 424 90 1,279 56 1,195 454 60 69 610 40 42 858 126 586 412 560e 72 62 68 n.a. 1,000 1,093 1,239 n.a. 1 Derived by a d j u s t i n g to a Aaa b a s i s , new i s s u e s of p u b l i c l y - o f f e r e d corporate bonds with c a l l p r o t e c t i o n , rated A, Aa, or Aaa by Moody's I n v e s t o r s S e r v i c e (except s e r i a l and c o n v e r t i b l e i s s u e s , o f f e r i n g s of natural gas p i p e l i n e and f o r e i g n companies, and bonds guaranteed by the Federal Government.) 2 M i l l i o n s of d o l l a r s u n l e s s otherwise i n d i c a t e d . Note: Sec f o o t n o t e s to Table 3 T A B L E 2: AMOUNT DATE OFFERED | FMTL. S) 1/13 1/13 1/20 1/19 1/18 1/10 OFFERED 1/12 1/11 1/12 1/18 24 31 Jan. 7 14 21 7.05 7 1/4 7 3/8 7 1/2 6 5/8 7 1/8 7.05 7.25 7.30 7.38 6.66 7.00 Aaa A Aa A NR Aaa 10 5 5 5 7 5 yrs yrs yrs yrs yrs yrs 90% 75% 35% 30% 75% 45% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT ISSUER COUPON YIELD IN YIELD CALL PROT. PORTION RELEASED +20 7.00 80% Pub Svc of Ind 7.00 Aa 5 yrs 50.0 +21 60% 7 1/8 5 yrs 7.05 Aa 40.0 Okla G & E +19 6 1/4 6.19 20% Gen'1 E l e c t Aaa 7 yrs 125.0 +31 7 1/8 6.90 • 5 yrs 75% Kentucky Pwr A 50.0 DATE 1971 - Dec. | L a n g f i t t Shipping S. Carolina E & G Tampa E l e c t L o u i s i a n a Pwr & L t . Co. F i r s t Nat'1 Boston Texas E l e c t 16.0 30.0 40.0 25.0 100.0 30.0 DATE I RELEXSED 1/17 1/20 1/20 1/20 1 D e t a i l s on Inventories CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING A N D " T ESTIMATED PROYIELD CALL PROTECTION PORTION SOLD ISSUER COUPON INVENTORIES 1 MUNICIPALS BLUE LIST | IN SYNDICATE 312 1,106 159 1,027 923r 973r 990 125 262 237 CORPORATES IN SYNDICATE 246 37 182 144 94 N.C. - No c a l l p r o t e c t i o n . 1 A l l f i g u r e s in m i l l i o n s of d o l l a r s . Blue L i s t i s d a i l y average for week ended F r i d a y , e x c e p t for l a t e s t week which i s d a i l y average of three days ended Wednesday. A l l other f i g u r e s are as of Friday. T A B L E 3: DATE NEW CORPORATE Aaa 1 High Grade Bond Y i e l d s MOODY'S SEASONED CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S,. SEASONED MUNICIPALS 4 1969 - 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) 1970 - 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) 1971 - 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) 1972 Dec. 24 31 mm — 7.23 7.22 6.07 6.00 5.13 5.02 Jan. 6 14 21 7.00 6.86 7.01 7.19 7.17 7.16 6.01 5.96 6.00 5.03 4.99 5.17 1 New c o r p o r a t e i s s u e s , with c a l l p r o t e c t i o n , a d j u s t e d (as d e s c r i b e d in f o o t n o t e 1 of Table 1) to a Aaa b a s i s . 2 Weekly average of d a i l y f i g u r e s . Average term of bonds, included i s 22-24 y e a r s . 3 Weekly average of d a i l y f i g u r e s . 4 Thursday f i g u r e s . The average r a t i n g of the 20 bonds used in t h i s index f a l l s midway between the four top groups as c l a s s i f i e d by Moody's Investors Service. Note--Highs and lows are for i n d i v i d u a l s e r i e s and may be on d i f f e r e n t d a t e s for d i f f e r e n t s e r i e s . . T A B L E 4: Long-term Corporate and State and Local Government Security Offerings and P l a c e m e n t s (In m i l l i o n s of dollars) GROSS PROCEEDS STATE AND LOCAL ' 1971 1970 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 1 ,964 1 ,892 ,061 1 ,348 1 ,359 1 ,758. 1 ,097 808 559 1969 January February March 3,115 3,000 6,075 2,636 1,802 3,539 April May June 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 3,665 3,375e 2,777 4,182 3,980 1,933 2,375 2,532 1:,696 2 ,265 2, ,020e 1 ,924 1 ,748 2,,190 1 ,280 886 816 12,190 11,654 10,447 10,409e 7,977 10,468 8,560 11,939 6,218 7,354 6,332 6,840 6, ,70L 6, ,095 5, ,917 5 , 98 l e 4,,109 3,728 4, ,465 5, ,862 2.,787 3 :,648 21,464 2.,982 23,844 34,291 44,700e 18,445 27,005 38,944 13,572 19,904 26,744 7, ,837 12, 302 18, 164 6, ,435 8, ,899 11, ,881 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st h a l f Three quarters Year 2,075 2,045 2,098 Excluding finance companies 1st 2nd 3rd 4th I ! i 2: 12, 796 18, 713 24, 474 3 Quarter Quarter Quarter Quarter . Year 1 2 3 S e c u r i t i e s and Exchange Commission e s t i m a t e s of gross p r o c e e d s . Investment Bankers A s s o c i a t i o n of America e s t i m a t e s of p r i n c i p a l amounts. Total gross p r o c e e d s ' e x c l u d i n g o f f e r i n g s of s a l e s and consumer f i n a n c e companies. T A B L E 5: New Corporate Security I s s u e s , T y p e of I s s u e and I s s u e r (In m i l l i o n s of d o l l a r s ) GROSS PROCEEDS BY TYPE OF ISSUER GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND MEMO: 'TOTAL PUBLICLY PRIVATELY PFD. ISSUES INCLUDED STOCK FOREIGN CONVERTIBLE OFFERED J PLACED 11,938 7,827 1,421 2,690 226 12,190 8,369 6,546. 4,725 5,170 1,516 2,306 1,758 1,641 1,893 3,384 4,079 3,345 84 215 114 n. a. 834 709 11,688 10,447 10,409 e/ 1 , 3,979 2,436 3,115 3,000 6,075 2,033 4,135 594 275 647 4,042 2,116 507 3,271 2,148 4,375 2,282 491 760 4,147 2,532 3,768 1,331 1,428 1,966 3,369 3,665 1,942 2,003 390. 3,375 1,225 800 2,201 PUBLIC UTILITY 737 3,169 3,406 1,346 4,020 724 1,351 652 762 3,794 3,130 2,202 2,266 3,197 2,910 2,651 3,135 1,606 896 2,263 4,753 3.331 1,036 3,972 159 165 1,056 955 282 1,687 489 524 1,293 43 3 38 99 676 557 716 661 2,417 1.069 1,452 391 683 532 1.332 587 1,675 1,419 633 116 384 1,135 255 588 1,267 588 273 405 1,367 47 52 712 1,206 1,055 218 732 849 1,622 1,332 168 3,594 1,489 1,897 359 1,210 850 1.070 282 1,271 933 432 264 1,341 1,371 340 1,260 619 2,196 72 199 582 416 687 34 606 160 1,196 8 293 474 1,146 703 724 1,271 1,350 59 220 663 60 392 828 1,202 150 775 Other i s s u e r s are e x t r a c t i v e , r a i l r o a d and other t r a n s p o r t a t i o n , r e a l e s t a t e and f i n a n c e , and commercial and other. Source: S e c u r i t i e s and Exchange Commission. Quarterly supplements are a v a i l able. COMMUNICATIONS 1,000 T A B L E 6: Large Long-term Public Security I s s u e s for New Capital (Other than U.S. T r e a s u r y ) 1 _ ISSUER \ . TYPE 2 AMOUNT •(MILLIONS OF DOLLARS) MATURITY January 7 through January 21, 1972 COUPON RATE OR NET INTEREST COST OFFERING YIELD MOODY'S RATING Corporate Texas ^Elect Svc Transok P i p e l i n e Co Oklahoma G & E Northern Natural Gas Co G. C. Murphy BT Mortgage I n v e s t o r s Pub Svc Co. of Ind. General E l e c t Co McCulloch Oil Corp R i c h ' s Inc B u r l i n g t o n Northern L a n g f i t t Shipping South Carolina E l e c & Gas Husky Oil Co of Del A l i s o n Mtge Investment Trust J u s t i c e Mtge I n v e s t o r s Kentucky Pwr Co F i r s t N a t ' 1 Boston Corp Northwestern Fin I n v e s t o r s Carolina Power & Light Co Louisiana Power & Light Co Broadway-Hale S t o r e s Inc Heitman Mtge Tampa E l e c t 1 s t mtge 1 s t mtge 1 s t mtge Debs Debs Debs Debs Debs Debs Debs Conv debs Gov't Gtd bonds 1st & ref mtge Conv deb Conv deb Bene i n t Bonds Bonds Bene i n t Com s t k Bonds Com s t k Conv deb Bonds 30.0 15.0 30.0 60.0 30.0 20.0 50.0 125.0 30.0 18.0 65.0 2002 1980 2002 1992 1997 1982 200? 1979 1996 1996 , 1992 7 1/8 6 5/8 7 1/8 7 3/8 7 3/8 5 3/4 7.00 6 1/4 5.00 7.35 5.25 7.00 6.65 7.05 7.33 7.38 5.75 7.00 6.19 5.00 7.35 5.25 Aaa Aa Aa A A 16.4 1991 7.05 7.05 Aaa 30.0 25.0 20.0 17.5 50.0 100.0 27.0 54.8 25.0 34.1 30.0 40.0 2002 1997 1992 7.25 6 1/4 6 3/4 7.25 6.25 6.75 A B — - - - ~ —- 1982 1979 7 1/8 6 5/8 6.90 6.66 A - 2002 W 7 1/2 — Aa Aaa - - A Baa —— - - - —— - - 7.38 A - - - - —— - — 1992 2002 7 1/2 7 3/8 7.50 7.30 - - Aa T A B L E 6: Large Long term Public Security I s s u e s for New Capital (continued) (Other than U.S. T r e a s u r y ) 1 1 ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY January 7 through January COUPON | 1 RATE OR UTKR - MOODY'S NET INTERi;.( RATING EST COST ] Yll.l.l) S t a t e and Local Montgomery Co Comm. C o l l . Auth Connecticut San F r a n c i s c o San F r a n c i s c o , Cal Cuyahoga Co, Ohio J a c k s o n , Tenn New York, N.Y. Wisconsin Georgia Education Auth (Univ) Huntington Beach, C a l i f Pub f a c . New York, N.Y. A t l a n t a , Ga. D a l l a s Co. Tex Columbus, Ohio I l l i n o i s Bldg Auth Omaha Pub Pwr D i s t . , Neb. Puerto R ico Port Agency Puerto Rico Port Agency Montgomery Co Comm. C o l l . Auth Pa. Rev G.O. G.O. G.O. G.O. Ref . G.O. G.O. Rev. Rev. G.O. Rev bds Rev G.O. Rev Elec Rev Rev Rev Rev 16.8 95.0 22.0 34.8 15.9 10.1 142.5 40.0 27.0 11.1 30.7 13.0 12.3 18.8 51.1 170.0 22.5 17.5 1972-80 1973-92 1973-92 1973-92 1973-97 1976-89 1973-2002 1973-92 1973-98 1975-98 1973-2015 1973-2001 1973-1992 1974-2003 1973-1997 1973-1992 2002 1973-1991 16.8 1972-1988 4.49 4.25 - - - 4.58 4.79 4.25 4.19 4.64 5.50 6.75 5,33 —— 4.81 4.95 5.34 5.70 5.70 — - - —— 2 . 4 0 - 4 . 60 2 . 5 0 - 4 . 70 2 . 4 0 - 4 . 80 2 . 7 0 - 5 . 00 3 . 6 0 - 5 . 10 2 . 4 0 - 4 . 65 2 . 3 0 - 4 . 75 2 . 4 0 - 4 . 90 3 . 5 0 - 5 . ,70 3 . 5 0 - 6 . ,60 2 . 7 5 - 5 . ,50 2 . 4 0 - 4 . 65 2 . 7 5 - 5 . 10 2 . 6 0 - 5 . ,35 3 . 7 0 - 5 . ,20 2 . 7 5 - 5 .,60 Aaa Aa Aa Aa Baa Aa Aa Aa Baa Baa Baa Aa Aa Aa A A A 2 . 5 0 - 4 , ,75 Aa • — ' Other U.S. P o s t a l S e r v i c e T.V.A. * 1 Bonds Pwr bds 250.0 150.0 1997 1997 6.88 6.88 - - — Aaa Rights o f f e r i n g . I n c l u d e s corporate and other s e c u r i t y o f f e r i n g s of $15 m i l l i o n and over; S t a t e and l o c a l s e c u r i t y o f f e r i n g s of $10 m i l l i o n and over. 2 In c a s e of S t a t e and l o c a l government s e c u r i t i e s , G.O. denotes gem raI o b l i g a t i o n ; ' < e v . - U t . , revenue o b l i g a t i o n s secured only by income from public u t i l i t i e s ; R e v . - Q . - l i t . , revenue bonds secured only by income from quas i - u t i 1 i t i l-s ; - Rev.-S .T . , revenue bonds secured by revenue from s p e c i f i c t a x e s o n l y ; R e v . - R e n t . , revenue bonds secured s o l e l y by l e a s e payments. 3 I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank for Reconstruction and http://fraser.stlouisfed.org/ Development i s s u e s and non-quaranteed i s s u e s by Federal A g e n c i e s . Federal Reserve Bank of St. Louis 2 4 1972 10 T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. T r e a s u r y ) 1 (continued) ISSUER TYPE Debs B e n e f i c i a l Corporation Debs F i r s t N a t ' 1 Bank of Oregon Bonds C & P T e l e Co of Md. Conv deb Mony Mtge Inv. Union Pac Ry EqTr Debs F i r s t Banc Group of Ohio I n t e r n a t i o n a l Harvester Cred Bonds 1 s t mtge Texas Oil & Gas Corp Bonds Gen'1 T e l e Co of 111. . Commercial Credit Co Bonds Debs Atico Mtge I n v e s t o r s Debs Mobile Oil Corp Notes P a c i f i c NW B e l l Tele B.F. Saul Real E s t a t e Inv Tr. Conv deb 1 s t mtge Niagara Mohawk Pwr Corp Bonds Pa Pwr & Lt. Co Pref Texas Pwr & Light 1st mtge Texas Pwr & Lt Singer Credit Corp Bonds Pref s t k Fla Pwr & Lt. Co Central Hudson Gas & E l e c t Cc 1 s t mtge North Am Car Corp EqTr 'Debs P a c i f i c T e l e & T e l e Co Notes P a c i f i c Tele & Tele Pref s t k Appalachian Pwr Bonds Appalachian Pwr Co Pref s t k Va Pwr & Lt Pref s t k Minn Pwr & L t . Bonds Northern S t a t e s Pwr Pref s t k P u b l i c Svc of Colo Bonds Gen'1 T e l e Co of Wise Pref s t k M e t r o p o l i t a n Edison Bonds F i r s t Nat 1 1 City Corp Bonds Globe-Union Inc Conv deb F i d e l c o Growth Inv. Debs C r e d i t h r i f t Fin Corp Debs GMAC AMOUNT (MILLIONS OF DOLLARS) 75.0 50.0 100.0 50.0 28.0 15.0 60.0 30.0 20.0 100.0 25.0 300.0 75.0 40.0 80.0 75.0 25.0 40.0 50.0 80.0 17.5 15.0 175.0 75.0 25.0 50.0 45.0 20.0 50.0 25.0 25.0 35.0 100.0 20.0 25.0 25.0 200.0 &s of January 21, 1972 APPROXIMATE DATE OF OFFERING Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. March 24 24 25 25 25 25 26 26 27 27 1 1 2 3 7 8 8 9 9 9 9 15 15 16 16 17 22 23 23 24 28 1 11 T A B L E 7: Forthcoming Large Long-term P u b l i c Security O f f e r i n g s for N e w Capital (Other than U.S. T r e a s u r y ) 1 (continued) ISSUER TYPE As AMOUNT (MILLIONS OF DOLLARS) 0f January 21, 1972 APPROXIMATE DATE OF OFFERING S t a t e and Local S e a t t l e , Wash. Penna, S t a t e of Hawaii, S t a t e of C a l i f o r n i a , S t a t e of Los Angeles DWAP New York S t a t e Pwr Auth Wilmington, Del Maryland, S t a t e of Texas Wtr Dev Bd H a r t f o r d , Conn. Denver Sch. D i s t # 1 , Colo New York S t a t e Dora Auth A l a s k a , S t a t e of. Michigan North C a r o l i n a Penna Higher Ed Fac Auth Tallahassee, Fla D h i o , S t a t e of S t . Paul, Minn Hartford C o . , Conn Penna S t a t e Pub Sch Auth South Carolina South Carolina P h i l a d e l p h i a Sch D i s t , Pa. Los Angeles Department Rev. G.O. G.O. G.O. Rev. Rev. G.O. G.O. Rev. G.O. G.O. Rev/ G.O. G.O. G.O. G.O. E l e c Rev G.O. G.O. Rev. G.O. G.O. Ref. G.O. Elec Rev 24.0 50.0 55.0 100.0 15.0 100.0 14.4 64.7 25.0 25.0 29.8 29.2 23.4 70.0 45.9 21.0 23.0 60.0 12.0 10.0 61.0 25.0 15.9 40.5 40.0 • January January January January January January January January February February February February February February February February'. February February February February February February February March March 25 25 25 25 26 27 27 1 2 7 8 8 8 9 10 10 10 14 23 23 7 15 Other Export-Import Bank 1 2 Debs 300.0 February 3 Included in t a b l e for f i r s t time. I n c l u d e s corporate and other i s s u e s of 515 m i l l i o n and over; S t a t e ami l o c a l Government i s s u e s of $10 m i l l i o n and over. I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank for R e c o n s t r u c t i o n and Development i s s u e s and non-guaranteed i s s u e s o f . F e d e r a l A g e n c i e s . Table 8 12 STOCK PRICES AND VOLUME STOCK P R I C E S 1 ' TRADING VOLUME 2 " DATE NYSE INDEX 3 - D J . INDUSTRIALS NYSE AMEX * AMEX - High Low 50.32 ( 5 / 1 4 ) 968.85 ( 5 / 1 4 ) 3 2 . 9 1 ( 1 / 1 3 ) 1 6 . 5 ( 3 / 2 9 ) 4 9 . 3 1 ( 7 / 2 9 * 769.93 ( 1 2 / 1 7 ) 2 5 . 0 2 ( 7 / 2 9 ) 8 . 6 ( 8 / 2 9 ) 8.0 (1/31) 3.6 (11/21) - High Low 18.5 ( 1 2 / 4 ) 842/00 ( 1 2 / 2 9 ) 27.02 ( 1 / 8 ) 52.36 (1/5) 19.36 ( 5 / 2 7 ) 7.8 ( 8 / 1 4 ) 3 7 . 6 9 ( 5 / 2 6 ) 631.16 ( 5 / 2 6 ) 7.1 (1/2) 1.8 (8/14) - High Low 57.76 ( 4 / 2 8 ) 950.82 ( 4 / 2 8 ) 2 6 . 6 8 ( 4 / 2 8 ) 2 2 . 1 ( 2 / 1 2 ) 11.0 (8/13) 797.97 ( 1 1 / 2 3 ) 2 2 . 7 2 ( 1 / 4 ) 48.73 (1/4) 6.7 ( 2 / 1 2 ) 2.7 (8/13) - Dec. - Jan. 3 10 17 24 31 7 14 21 55.32 55.62 56.43 859.59 856.75 873.80 981.17 890.20 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 57.21 57.22 57.39 910.37 906.68 907.44 26.14 26.53 26.71 17.5 17.1 19.0 5.3 5.9 6.1 53.51 I 53.99 ' NOTES: 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 : years, however abbreviated trading to the extent, and over the time Hours/ Days/ From Through: Day Week January 3, 1969 July 7, 1969 January 2, 1970 July 3, 1969 December 31, 1969 May 1, 1970 3. 12/31/65 = 50 4. Average dollar value of shares listed. 27-1/2 hours per week. periods, shown below: Hours/ Week . 13 T A B L E 9: Security Credit END OF PERIOD CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 | BANKS 2 | TOTAL CUSTOMERS 1 NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY BROKERS AND FREE CREDIT 3 BALANCES | DEALERS Outstanding: 1970 Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 4,010 4,030 2,320 2,330 6,330 6,360 (4) (4) 2,197 2,286 4,000 4,090 4,300 4,530 4,620 4,720 4,790 4,350 4,930 4,950 4,910 2,300 2,330 2,360 2,340 2,340 2,390 2,420 2,430 2,430 2,410 2,400 6,300 6,420 6,660 6,870 6,960 7,110 7,210 7,280 7,360 7,360 7,310 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 2,452 2,743 2,798 2,660 2,550 2,440 ,2,210 2,200 2,100 2,160 2,170 20 50 10 50 30 -30 30 30 -20 -60 120 240 210 90 150 100 70 80 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) ^ (4) (4) Change i n Outstanding 1970 Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 1 -30 90 210 230 90 100 70 60 80 20 -40 50 30 10 -20 -10 - - - — - — - - - - -50 34 89 291 291 55 -138 -110 110 230 -10 100 60 10 - - —— —— - - - - - — -* Margin debt, as reported by the New York Stock Exchange, Although margin debt u n t i l March 1968 included loans secured by U.S. governments, the amount of such loans included i s thought to have been s m a l l . "Bank loans to o t h e r s than brokers and d e a l e r s f o r purchasing or carrying secur i t i e s other than U.S. governments." The d i f f e r e n c e between customers' net d e b i t balances and customers' net £ r w cre d i t b a l a n c e s , t h i s f i g u r e r e p r e s e n t s the net c r e d i t extended by brokers and d e a l e r s to the n o n f i n a n c i a l p u b l i c . NOTE: With the e x c e p t i o n of bank loan d a t a , f i g u r e s are supplied by the New York Stock Exchange and are end of month d a t a . Bank loans are for weekly r e p o r t i n g l a r g e commercial banks. Broker data i n c l u d e s loans f o r r e g u l a t e d s e c u r i t i e s ; ban! data i n c l u d e s loans for the purpose of purchasing or c a r r y i n g any s e c u r i t y , whcthvi S e e s*1 c31 s con t i n u e d. Changes in s e r i e s . S a v i n g s F l o w s at IMonbank D e p o s i t a r y Intermediaries ($ m i l l i o n s ) > SAVINGS « MUTUAL SAVINGS BANKS NET REGULAR DEPOSITS 3 SHARE CAPITAL N E W ANNUAL ANNUAL MONEY2 NET GROWTH GROWTH NET FLOW RATE 1 RATE 1 FLOW l DATE I 1 T A B L E 10: NET NEW MONEY 2 TOTAL DEPOSITS : NET ANNUAL NEW NET GROWTH 1 MONEY' RATE 1 FLOW Not S e a s o n a l l y Ad justed 1968 1969 1970 4,203 2,549 4,517 7.0 4.0 6.8 1,143 -763 936 7,432 4,068 10,965 1970 - October November December 276 497 1,218 —— 138 388 376 1,113 1,087 2,773 —— ' 1971 - October November g / December g / 372 631 1,180 - - 224 512 310 1,600 1,573 3,000 —— - - 2,687 1,529 2,125 2,071 1,721 1,917 — —- -- 6.0 3.1 8.1 - - -— 2,738 -1,003 5,295 11,635 6,617 15,482 1,050 1,044 1,161 1,389 1,584 3,991 1,504 1,496 1,100 1,972 2,204 4,100 6.3 3.4 7.7 3,881 -1,766 6,231 • 1,188 1,432 1,537 1,728 2,008 1,410 S e a s o n a l l y Adjusted 1971 - J u l y August September October November j>/ December £_/ 629 539 683 599 659 807 1 2 9.8 8.4 10.5 9.1 10.0 12.1 — — • - - 19.9 11.2 • 15.4 14.8 12.1 13.4 - - — — — 3,316 2,068 2,808 2,670 2,380 2,724 16.7 10.3 13.8 13.0 11.4 13.0 Annual growth r a t e for monthly data i s the annualized monthly percentage i n c r e a s e in d e p o s i t s . Net New Money i s new d e p o s i t s net of both withdrawals and i n t e r e s t . Data for S&Ls are for insured a s s o c i a t i o n s o n l y , which r e p r e s e n t 967, of i n d u s t r y t o t a l r e s o u r c e s . 3 Regular d e p o s i t s at mutual s a v i n g s banks exclude items such as Christmas club and c e r t a i n escrow a c c o u n t s , which r e p r e s e n t a very small part of t o t a l d e p o s i t s . SOURCE: National A s s o c i a t i o n of Mutual Savings Banks and Federal Home Loan Bank Board. NOTE: Data r e f l e c t S&L r e v i s i o n s from 1969 t o p r e s e n t and updating of s e a s o n a l adjustment f o r both S&Ls and MSBs. T A B L E 11: Mortgage Commitments at S e l e c t e d Thrift Institutions OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS SAVINGS & BANKS LOAN (N.Y. STATE) ASSOCIATIONS 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) ( B i l l i o n s of D o l l a r s , S e a s o n a l l y A d j u s t e d )M- ' Sept. Oct. Nov. Dec. 8.9 9,3 9.6 10.1 7.1 7.5 7.8 8.1 1. 8 1. 8 1. 8 2. 0 .25 .30 .35 .51 ,36 .37 .34 .28 . 11 .07 .01 .23 1971 - Jan. Feb. Mar. Apr. May June July Aug. Sept. 10.4 11.2 12.6 13.8 15.3 16.1 16.3. 16.4 16.5 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 .07 . 12 .20 .60 1..16 1,.01 1;,21 .72 .28 .10 - .01 .05 .20 .20 .29 .34 .05 .02 .03 . 13 Based on data from Federal Home Loan Bank Board and Savings New York S t a t e . Data f o r s a v i n g s banks and S&L's i n c l u d e r e s i d e n t i a l commitments. S&L commitments i n c u l d e loans i n are d e r i v e d d i r e c t l y from unrounded o u t s t a n d i n g s l e v e l s as s e a s o n a l adjustment by Federal Reserve. S u b t o t a l s may not of rounding. Banks A s s o c i a t i o n s of a minor amount of nonp r o c e s s . Net changes reported and a f t e r add to t o t a l s because 16 T A B L E 12: TOTAL INCLUDING FNMA-GNMA DATE N e t Change in Mortgage Holdings FINANCIAL INSTITUTIONS LIFE MUTUAL SAVINGS & TOTAL COMMERCIAL INSURANCE SAVINGS LOAN BANKS COMPANIES BANKS ASSOC. Not 1968 r / 1969 r / 23,796 23,867 21,288 19,492 6,677 5,404 1970 1971 r/ 21,945 17,035 2,462 1970 - Oct. 2,193 Nov. 2,005 2,798 Dec. 1971 - Oct. Nov. 3,731 3,593 Dec. n.a. r l,826 r 1,752 2,650 r 3,275 3,246 r 1971 - Oct. r / Nov. r / - 2,115 1,812 1,845 . 2,798 2,533 9,344 9,572 2,469 1,983 1,956 10,254 2,363 4,375 4,910 1,175r 193 367 1,171 1,653 118 495 253 148 294r 162r 280 200 183 302 900 33 l 800 473 700 n.a. Dec. r/ 2,054 2,513 Jan. r/ 2,033 Feb. r/ rZ rZ rZ 2,184 3,005 3,057 3,300 2,983 3,113 3,260 rZ 4,136 Mar. Apr. May June 2,412 2,043 2,219 277 232 325 394 ^ . r l,979 1,934 n.a. 1,173 1,285 1,675 200 217 1,348 1,426 1,801 65 456 39 n.a. 347 n.a. 206 153 303 209 101 101 101 91 53 42 21 40 201 2,252 72 130 308 512 2,122 128 466 1,977 77 475 690 685 401 293 864 318 2,036 3,935 1,219 386 2,309 374 . 400 306 329 . 182 -10 -35 22 -56 2,082 July rZ 4,186 3,878 r/ 4,168 3,656 977 901 Sept. r/ 3,924 3,657 3,647 3,458 3,267 902 884 Nov. 3,345 752 465 2,051 Dec. n.a. n.a. 826 n.a. n.a. rZ r 2,508 Adjusted 156 175 230 Aug. Oct. FNMA-GNMA Seasonally Adjusted Seasonally 1970 1 2,455 77 n.a. 390 . 302 n.a. Monthly data f o r commercial banks based on Federal Reserve e s t i m a t e s benchmarked to C a l l Report data on r e a l e s t a t e loans o u t s t a n d i n g as a v a i l a b l e . Other data derived from mortgage debt o u t s t a n d i n g as reported s e p a r a t e l y by National Assn. of Mutual Savings Banks, Federal Home Loan Bank Board, I n s t i t u t e of L i f e Insurance and, through August 1968, the Federal N a t i o n a l Mortgage A s s o c i a t i o n , and t h e r e a f t e r by FNMA and the Government N a t i o n a l Mortgage Association. Data for mutual s a v i n g s banks and for L i f e Insurance companies may d i f f e r somewhat from those derived from r e g u l a r q u a r t e r l y s e r i e s because of minor conceptual d i f f e r e n c e s for which adjustments are not made in the monthly s e r i e s . A l t o g e t h e r , t h e s e groups accounted f o r 87 per -cent of the net i n c r e a s e e s t i m a t e d for a l l h o l d e r s in 1967. r = R e v i s i o n of s e a s o n a l l y a d j u s t e d data r e f l e c t s changes based on the annual review of s e a s o n a l f a c t o r s . 17 T A B L E 13: Net I n c r e a s e s in Mortgage Debt Outstanding B i l l i o n s of d o l l a r s , SAAR ^ TOTAL RESIDENTIAL3 1 - to 4FAMILY MULTIFAMILY COMMERCIAL Ir Ilr Illr IVr 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 3.9 5.0 4.9 4.7 Ir Ilr Illr IVr 28.1 26.4 25.8 29.4 19.4 18.2 17.4 20.2 16.2 15.0 13.9 16.3 3.2 3.2 3.5 3.9 Ir Ilr Illr IVr 31.8 29.1 26.2 24.9 23.6 21.5 19.0 18.2 19.2 16.8 14.4 13.0 Ir fir Illr IVr 20.6 22.9 29.1 31.3 14.2 16.9 .21.8 22.5 ir Ilr 37.1 47.8 53.7 52.1 26.6 36.1 40.6 40.4 QUARTER 1967 1970 nip zvp MULTI-AND COMMERCIAL FARM 7.2 8.4 8.8 8.5 1.8 1.8 2.5 2.8 6.4 6.0 6.6 7.3 9.5 9.2 10.1 11.2 2.3 2.2 1.8 1.9 4.4 4.7 4.7 5.3 6.1 5.4 5.4 5.2 10.5 10.1 10.0. 10.5 2.2 2.2 1. 7 1.4 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 18.5 26.4 30.7 31.0 8.1 9.7 9.9 9.5 8.3 9.4 10.8 9.3 16.3 19.1 20.7 18.7 2.2 2.3 2.3 ' 2.4 - 1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, I n s t i t u t e of L i f e Insurance, Nat i o n a l A s s o c i a t i o n of Mutual Savings Banks, Departments of Commerce and Agric u l t u r e , Federal National Mortgage A s s o c i a t i o n , Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of noniarm mortgage debt by type of property, where not a v a i l a b l e , and i n t e r p o l a t i o n s and e x t r a p o l a t i o n s , where required, estimated mainly by Federal Reserve. 2 May d i f f e r somewnat from r e l a t e d flow of funds s e r i e s mainly because of more aggregative type of seasonal adjustment. ' 3 R e s i d e n t i a l mortgage debt includes nonfarm only and i s sum of 1 - t o 4- family and multifamily mortgage debt combined. r R e v i s i o n based on annual review of seasonal f a c t o r s . T A B L E 14: 1 WEEK ENDED Oct. Nov. Dec. 1972 Jan. FNMA Weekly " A u c t i o n " R e s u l t s IMPLICIT YIELD 2 (per c e n t ) COMMITMENTS IN $ MILLIONS ACCEPTED 3-4 1-YEAR 1 1-YEARH months 6TOTAL 1 - 4 6TOTAL & OVER MONTH MONTH & OVER OFFERED 3/ mo. 3 / 4 18 365.1 219.8. 194.8 103.6 194.£ i 103.6 -- 1 15 29 126.0 145.3 210.6 56.4 102.0 101.1 56.4 102.0 101.1 ---- 13 27 232.5 222.7 70.2 148.1 70.2 148.1 --- 10 136.9 72.9 72.'9 7.85 " 7.83 - - - - - - 7.77 7.70 7.66 7.62 7.62 — - - - — —— - - . - - - - — 7.61 Note: Under the FNMA a u c t i o n 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 c o m m i t m e n t s . 1. For "proposed c o n s t r u c t i o n " of new homes o n l y , 2. Average secondary market y i e l d a f t e r allowance f o r commitment f e e and required purchase and h o l d i n g of FNMA s t o c k , assuming prepaykent of 15 y e a r s f o r 3 0 - y e a r Government-underwritten mortgages. Y i e l d s shown are g r o s s , b e f o r e deduction of 38 b a s i s p o i n t s f e e paid by i n v e s t o r s to s e r v i c e r s . 3. Short-term commitments converted from a 3 t o a 4 month b a s i s b e g i n n i n g October 18, 1971. 19 T A B L E 15: Private Housing Starts and Permits STARTS DATE I - Oct. Nov. Dec. SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE 1,583 1,693 2,054 890 934 1,240 693 759 814 TOTAL UNADJUSTED 1 TYPE OF FINANCING | FHA VA | OTHER 1 140.9 126.9 121.4 40.4 33.7 63.2 5.8 5.5 5.7 . 94.7 87.2 52.5 BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 1,523 1,487 1,768 1,635 110.6 32.3 4.6 73.-7 779 1,725 • 946 . - Jan. 1,563 27.3 4 . 7 102.2 70.2 985 769 1,754 Feb. 1,627 6 . 9 127.6 167.9 3 3 . 5 911 1,959 1 , 0 4 8 . Mar. 1,638 148.0 44.6 8.5 201.1 814 1,912 1,098 Apr. 1,927 149.4 40.7 8.4 198.5 851 1,975 1,124 May 1,849 46.1 9.3 193.8 823 2 , 0 0 0 1,177 138.4 June 2,052 42.9 9.2 194.3 1,042 2 , 2 2 9 1,187 141.1 July 2,006 45.8 9.4 204.5 1,046 2,258 1,212 147.0 Aug. 1,900 , 48.3 8.7 116.8 Sept. | 2 , 0 0 2 1,187 815 173.8 8 . 1 133.1 2,173 38.5 872 179,7 Oct. r / ,2 , 0 3 1 1,159 122.9 1,952 47.2 9.1 1,020 172.2 2,303 1,283 Nov.r/ 2,231 7.4 149.6 1,106 — — Dec. 2./ 12/517 1,411 1 T o t a l s t a r t s are Census"~estimates i n c l u d i n g farm for both p e r m i t - i s s u i n g and n o i . - i s s u i n g a r e a s . A d w e l l i n g u n i t i s s t a r t e d when excavation b e g i n s ; a l l u n i t s in an apartment s t r u c t u r e are considered s t a r t e d at that time. FHA and VA s t a r t s are u n i t s s t a r t e d under commitments by t h e s e a g e n c i e s t o i n s u r e or guarantee the mortgages. As reported by FHA and VA, a u n i t i s s t a r t e d when a f i e l d o f f i c e r e c e i v e s the f i r s t compliance i n s p e c t i o n r e p o r t , which i s made b e f o r e f o o t i n g s are poured in some c a s e s but normally a f t e r the foundations have been completed. Other s t a r t s are derived as a r e s i d u a l , although t o t a l and FHA and VA s t a r t s are not s t r i c t l y comparable in concept or timing; other s t a r t s i n clude both u n i t s financed by conventional mortgages and u n i t s without mortgages. 2 B u i l d i n g permits b e f o r e January 1963 are Census e s t i m a t e s f o r about 10,000 areas i d e n t i f i e d as having a l o c a l b u i l d i n g permit system in 1959. Estimates beginning January 1963 are for approximately 12,000 and beginning January 1967 1 3 , 0 0 0 , or a l l known p e r m i t - i s s u i n g p l a c e s . Unlike s t a r t s , s e a s o n a l l y a d j u s t e d b u i l d i n g permits r e f l e c t d i r e c t adjustment for d i f f e r e n c e s in the number of working 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. • —- 20 TABLE 16: Mortgage and Bond Y i e l d s , FHA MORTGAGES DATE 30-year L ! CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON C0NV. & FHA MORTGAGES 5 1 . NEW Aaa CORPORATE BONDS 4 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 6 -.13 -.40 8.75 6.91 1.08 -.13 Low 7.99 8.35 7.55 1970 - High Low , 9.29 8.40 8.60 8.30 -.10 -.74 9.1\ 7.80 .99 .01 1971 - High 7.97 7.32, 7.95 7.55 .28 -.19 - 8.01 7.24 .50 -.36 7.97 7.92 7.84 7.80 7.85 7.85 -.17 -.07 .01 7.96 7.65 7.44 .01 .27 .40 7.75 7.62 7.59 7.80 7.75 7.70 .05 .13 .11 7.29 7.19 7.09 .46 .43 .50 1969 - High Low 1971 - J u l y Aug. Sept. Oct. Nov. Dec. 1 2 3 4 5 6 ' 8.62 N e i t h e r m o r t g a g e n o r bond y i e l d s i n c l u d e a l l o w a n c e for s e r v i c i n g costs which are much h i g h e r for m o r t g a g e s than for bonds. G e n e r a l l y , bonds pay interest semiannually; m o r t g a g e s , m o n t h l y . M o r t g a g e y i e l d s , if c o m p u t e d — a s equivalent to a semi-annual interest i n v e s t m e n t , would b e slightly h i g h e r than given in the table. Based on F H A - f i e I d - o f f i c e o p i n i o n s about average bid p r i c e s i n the p r i v a t e secondary market f o r new-home mortgages f o r immediate d e l i v e r y . Data shown are f o r 3 0 - y e a r mortgages w i t h minimum downpayments, and weighted by probable volume of t a n s a c t i o n s . Y i e l d s computed by FHA, assuming prepayment p e r i o d of 15 y e a r s f o r 3 0 - y e a r mortgages. Based on F H A - f i e I d - o f f i c e o p i n i o n on t y p i c a l i n t e r e s t r a t e s (rounded) on c o n v e n t i o n a l f i r s t mortgages p r e v a i l i n g i n the market areas of i n s u r i n g office cities. See n o t e f o r Table 1. y i e l d spread e q u a l s c o n v e n t i o n a l mortgage r a t e s l e s s FHA secondary market y i e l d . Yield spread e q u a l s FHA secondary market y i e l d l e s s new Aaa corporate bond yield. 21 T A B L E 17: DATE Conventional Mortgage Terms 1 NEW HOMES CON- FEES & TRACT CHARGES EFFEC- MATURITY RATE (PER TIVE ! (YEARS) (PER CENT) RATE | CENT) 2; 3 1 LOAN/ PRICE LOAN RATIO AMT. (PER ($000) CENT) 4 EXISTING HOMES CON- FEES & LOAN/ TRACT CHARGES EFFEC- MATU- PRICE' ' LOAN (PER RATE TIVE RITY RATIO AMT. (PER CENT) RATE (YEARS) (PER ($000) CENT) CENT) 2 3 4 8 .26 8 .20 0.99 1.07 8 .43 8 .38 25 .3 25 . 8 72 . 1 73 . 8 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 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 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. 1971 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. * Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on p r o b a b i l i t y sample survey of charact e r i s t i c s of conventional f i r s t mortgages o r i g i n a t e d by major i n s t i t u t i o n a l lender groups ( i n c l u d i n g mortgage companies) for purchase of s i n g l e family homes. Data exclude loans for r e f i n a n c i n g , r e c o n d i t i o n i n g or modernization; construction loans to home-builders; and permanent loans which are coupled with construction loans to ownerb u i l d e r s . Related s e r i e s on conventional mortgage r a t e s only, based on unweighted opinions of f i e l d - o f f i c e d i r e c t o r s of the Federal Housing Administration, are a v a i l a b l e somewhat sooner than the r e s u l t s of the FHLBB-FDIC survey, and are in clu d ed - in the case of new home mortgage r a t e s - - i n Table 16. Fees and charges--expressed as a percentage of the p r i n c i p a l mortgage amount--include loan commissions, f e e s , d i s c o u n t s , and other charges which provide added income to the lender and are paid by the borrower. They exclude any c l o s i n g c o s t s r e l a t e d s o l e l y to t r a n s f e r of property ownership. Includes f e e s & charges amortized over a 10 year period in addition to the contract interest rate. Derived by FRB.
@FedFRASER