Full text of H.16 Capital Market Developments : January 8, 1973

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T -E^CONTROLLED

EE*
L.5.8 Confidential (F.R.)

r~-r\

AFTER SIX MOUTHS

-—'j. r..

1

January 8,

t

;<?J3

i C' > JV

CAPITAL
MARKET
DEVELOPMENTS

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




c .

...

rY

INDEX

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 Markets
C a p i t a l Market Y i e l d s
C a p i t a l Market V o l u m e
S t o c k Market
M o r t g a g e Market

SYMBOLS:

e

Estimate

p

Preliminary

r
n.a.

Revised
Not 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
MOODY1S
NEW ISSUE
WEEK ENDING:
SEASONED
Aaa
1
Aaa
UTILITY
1972 - Dec.
1
7.05
7.07
8I
7.05
7.15
15
7.21
7.08
—
22
7.10
29
7.11
-Jan.

5
12

YIELDS
MOODY'S
BOND BUYER
SEASONED 20
Aaa
BOND INDEX
4.90
4.99
4.85
4.96
4.90
5.03
4.95
5.10
4.95
5.11

WEEK ENDING:
1972 - Dec.

1
8
15
22
29

Jan.

5
12

7.11

--

4.95

5.08

!

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
622
76
n.a.
340
75
n. a.
499r
80
n.a.
138
94
n.a.
52
100
n.a.
34
350e

100

n.a.

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
1
GROSS
S O L D BY E N D
1 BONDS SCHEDULED
J WITHIN 28 DAYS
OFFERINGS
. OF WEEK
407
58
1,203
881
76
569
575
65
255
244
68
518
11
54
518
52
565e

-

55

963

1
1
1 D e r i v e d by a d j u s t i n g to a A a a b a s i s , n e w 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
with call p r o t e c t i o n , rated A , A a , or A a a by M o o d y ' s I n v e s t o r s S e r v i c e (except serial
and c o n v e r t i b l e issues, o f f e r i n g s 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
bonds g u a r a n t e e d by the Federal G o v e r n m e n t . )
2 M i l l i o n s of d o l l a r s unless o t h e r w i s e i n d i c a t e d .
Note:

See

footnotes to T a b l e




3

T A B L E 2: Details on Inventories

DATE
OFFERED

fMIL. $)

12/14
12.19

53.0
25.0

AMOUNT

DATE
OFFERED | RELEXSED

CORPORATE BONDS IN SYNDICATE END OF LATEST UEF.K
ORIGINAL RATING AND
YIELD CALL PROTECTION
COUPON
ISSUER
Sedco U. S. Gov't Mer. Mar.
First Amtenn Co

7.15
7 5/8

7.15
7.63

ESTIMATED *PROPORTION SOLD
75%

10 yrs

75%

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROCOUPON
ISSUER
AMOUNT
YIELD IN YIELD CALL PROT. PORTION RELEASED

NONE

DATE
1972 - Dec.

8
15
22
29

Jan.

5

INVENTORIES 1
MUNICIPALS
IN SYNDICATE
BLUE LIST
|
322
1,,015
382
1:,090
260
1;,007
197
816
142

CORPORATES
IN SYNDICATE
85
108
19
19
19

N.C. - No call protection.
1
All figures in millions of dollars. Blue List Is daily average for i.eck ended Friday, except for latest '..cuk
which is daily average of three days ended Wednesday. All other figures 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
MUNICIPALS4

1970 - High
Low

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

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

8.26 (7/30)
7.02 (2/5)

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

6.51 (6/18)
5.69 (3/23)

6.23 (6/23)
4.97 (10/21)

1972 - High
Low

7.60 (4/21)
6.99 (11/24)

7.36 (4/28)
7.05 (12/8)

6,19 (4/14)
5.74 (11/17)

5.54 (4/13)
4.96 (12/7)

1972 - Dec.

1
8
15
22
29

7.05
7.15
7.21

7.07
4.99
6.82
7.05
4.96
5.87
5.03
7.08
5.93
—
5.10
7.10
6.03
5.11
7.11
6.03
—
—
Jan.
5.08
7.11
6.30
1
New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
2
Weekly average of daily figures. Average term of bonds included is
22-24 years.
3
Weekly average of daily figures.
4
Thursday figures. The average rating of the 20 bonds used in this index
falls midway between the four top groups as classified by Moody's Investors Service.
Note--Highs and lows arc for individual series and may be on different dates
for different series.




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
PERIOD
1972

1971

1970

3 ,205
3, 3 6 9
3 ,229

3 ,115
3 ,000
6 ,075

2 ,636
1 ,802
3, 5 3 9

3 ,275
. 3,598
4 ,341

4 ,042
3 ,300
4 ,375

3 ,170
3 ,909
3 ,389

August
September

3, 5 8 2
2 ,893
2 ,737

4 ,147
2, 5 3 2
3 ,768

2 ,768
2 ,274
3 ,518

October
November
December

3, 7 4 1
3 , 050e
2,, 650e

3,387
3.,704
3., 673

3 ,777
4,,182
3.,980

January
February
March
April
Hay
June
. July

1st Quarter
3rd Quarter
4th Quarter

9.,803
11.,214
9,, 2 1 2
9,,441e

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

73,977
10,,468
8,, 5 6 0
11,, 9 3 9

1st half
Three quarters
Year

21,017
30,2 2 9
39,67 Oe

23,844
34,325
45,089

18,445
27,005
38,944

2nd Q u a r t e r

!

CORPORATE 1

.

,

1

STATE AND LOCAL 2
1972

1971

1970

1, 7 7 6
2 ,002
2 ,237

2, 7 3 2
1 ,851
2 ,258

1,340
1 ,214
1 ,555

1 ,988
2 ,002
2 ,260

1 ,891
2 ,167
2 ,013

1 ,647
996
1 ,085

1 ,800
1 ,951
1 ,693

1;,989
1 ,903
2,,098

1 ,348

1.,838
1,, 755e

2.,155

1.,728
2., 2 6 4
2,,068

1.,924
j
1 ,748

2,,190

6,,015
6,,250
5,,444
5,, 748e

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

4,,109
3,,728
4,, 4 6 5
5,,862

12,812
18,902
24,962

7,837
12,302
18,164

12,265
17,709
23,457e

1 ,359
1.,758

I

1
Si-curi Lies and E x c h a n g e C o m m i s s i o n e s t i m a t e s of g r o s s p r o c e e d s .
Investment Bankers Association




of A m e r i c a

estimates

of p r i n c i p a l a m o u n t s .

T A B L E 5: New Corporate Security I s s u e s , Type of I s s u e and Issuer
(In m i l l i o n s of d o l l a r s )
G R O S S P R O C E E D S BY

G R O S S P R O C E E D S BY
T Y P E OF I S S U E R

T Y P E OF I S S U E

QUARTER
OR
MONTH

TOTAL

COMMON
BONDS
AND
1
PUBLICLY PRIVATELY PFD.
OFFERED
PLACED
STOCK
4,725
1 641
4,079
5,135
2 439
3,193

1971 - I I I
IV

10,447
10,764

1972 - I
II
III ,
I vs./

9,805
11,214
9,345
9,441

5,361
4,634
4,192
4,, 063

1 593
2,851
2 781
3 798
1,893 ' 3,,259
2 ,192
3;, 186

Nov.
Dec.

3,704
3,673

2,003
1,190

433
1:,283

1972 - Jan.
Feb.
Mar.

3,205
3,369
3,229

1,767
1,,907
1,,677

3,275
3,598
4,341
3,582
2,893
2,737
3,741
3,050
2,650

1,,622
1,,676
1,,336
1,,807
1,,523
862
1,650
1,,763
950

Apr.
May
June
July
Aug.
Sept
Oct.
Nov.(
Dec. e/

y,

1

MEMO:
PUBLIC
ISSUES INCLUDED
MFG.
UTILITY
FOREIGN | CONVERTIBLE
114
652
2,:202
2,651
133
2,543 3,041
767

COMMUNICATIONS

OTHER
ISSUERS1

2,,263
1,,053

3,331
4,164

1,,476
1 ;,369
856
1 ,156

4,541
4,240
4,038
4,543

74
245
68
n.a.

511
449
838
352

1,,269
1,,201

62
12

395
150

'811
980

1,,217
891

269
352

1,408
1,450

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

789
774
1 ,218
657
421
806
542
650
1 ,000

864
1,148
1 ,786
1 ,118
1,,949
1 ,070
1 ,436
1 ,050
700

15
100
130
3
17
52
7
n*a.
n.a.

92
226
131
450
183
203
162
15.0
40

581
761
767
574
452
606
347
125
300

1 ,219
738
1 ,538
798
635
1 ,262
1 ,336
885
750

.178
391
800
586
237
33
370
760
25

1,297
1,708
1,235
1.624
1,568
837
1,688
1,280
1,575

1 ,525 2,,261
2 ,109 3,,495
1 ,749 2 ,701
j
772 2 ,971

Other issuers are extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are available.




\

• \

<1

T A B L E b:

Large L o n g - t e r m Public Security I s s u e s for New Capital (continued)
(Other than U.S. T r e a s u r y ) '

January 1 throughJanuary 5, 1973
AMOUNT
(MILLIONS
OF

MATURITY

DOLLARS)
Union Tank Car
P u b l i c Svc of I n d i a n a




Bonds
Pref stk

21.0
20.0

1993

COUPON
R A T E OR
NET INTEREST COST

7.40
7.15

OFFER -

MOODY'S

II, C
YIKLD

RATING

7.47
7.15

T A B L E 6.

Larcje Long-term Public Security I s s u e s for New Capital (continued)
(Other than U.S. Treasury) 1

AMOUNT
(MILLIONS
ISSUER
State and Local

TYPE
r

2

OF
DOLLARS)

|
!

COUPON
|
R A T E OR
or i'I-:R MATURITY
NET INTER- !
r;.c
1 EST COST
| VI 1.1.1)

1 fiirniigh January 5, 1973
MOODY'S
RATING

No issues week of
January 1, 1973

*
1
2

3

lights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
In case of State and local government securities, G.O. denotes general obligation;
Kev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut., revenue bonds secured only by income from quas i-utilities; Kev.-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.




1

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

ISSUER

Perm Pwr & Lt.
Fla Pwr & Lt.
Duke Pwr
-Central Pwr & Lt.
Central pwr & Lt.

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)
80.0
70.0
75.0
25.0
26.0

M o n t a n a Pwr
^International Harvester Credit
Okla Gas & Elect
Maine Yankee Atomic
Maine Yankee Atomic
Borg Warner Acceptance Corp
Pan American World Airways
Detroit Edison
*Brown Group, Inc.
Cincinnati Gas & Elect
Philadelphia Elect

Bonds
Bonds
Com stk
Bonds
Pref stk
Bonds
Bonds
C m (rts)
Bonds
Pref stk
Bonds
Conv debs
Bonds
Bonds
Com stk
Bonds

N o r t h e r n S t a t e s Pwr
New York State Elect & G a s
Texas Pwr & Lt.
C B T Corp
John Deere Credit Co.
Walter Kidde & Co
^Continental Illinois Corp

Bonds

50.0

Com stk
Bonds
Bonds
Bonds
Bonds
Notes

25.0
50.0
25.0
75.0
65.0




A P P R O X I M A T E DATE
OF O F F E R I N G

25.0
75.0
45.0
15.0
15.0
25.0
75.0
100.0
40.0
42.0
100.0

100.0

/

Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan.
Jan. '
Jan.
Jan.
Jan.:
Jan.
INDEF
INDEF
INDEF

8
9
9
10
10
10
10
10
11
11
11
15
15
16
18
22
24
24
30

T A B L E 7: - F o r t h c o m i n g Large Long-term P u b l i c Security O f f e r i n g s for New C a p i t a l
(Other than U.S. T r e a s u r y ) 1

As of January

ISSUER
State and Local

APPROXIMATE DATE
OF OFFERING

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

23.6
37.0
31.0
17.9
55.0
10.0
20.0
75.0
25.0
125.4
18.0
37.6
35.0
10.5
25.0
51.4
129.5
33.5
20.0
75.0
52.0
150.0

8
Jan.
Jan.
9
Jan.
9
9
Jan.
9
Jan.
9
Jan.
9
Jan.
Jan. 10
Jan. 10
Jan. 10
Jan. 11
Jan. 11
Jan. 11
Jan* 16
Jan. ' 17
Jan. 17
Jan. 17
Jan. 17
Jan. 18
Jan. 23
Jan. 23
Jan. 30

Swr Rev
Elec Rev
G.O .

25.0
50.0
100.0

Feb.
Feb.
March

G.O.

100.0

Jan.

TYPE

* Dover, Del.
^ Wisconsin
New York State Dorm Auth
*Stamford, Conn
Hawaii
*Washington
; Alaska
Salt River Project, Ariz.
Penn, State of
Richmond Metro Auth, Va.
Billings, Montana
. Dallas Co, Texas
*San Antonio, Tex
Garland, Texas
- ^Delaware, State ofq
Los Angeles Dept, Airport, Calif
^ New York State
*Cayton, Ohio
T- Toledo City S/D, Ohio
• *Oregon, State of
*N.Y.C. Housing Dev. Corp
*Illinois, State of
Hampton Rds. Sanitation
Dist, Va.
Los Angeles Dept of Wtr & 3?wr.
*Maryland, State of

5, 1973

AMOUNT
(MILLIONS
OF
DOLLARS)

1
7
7

Other
T.V.A,

in table for

16

*

Included

1

Includes corporate and ether issues of 515 million and over: State and
Government issues of S10 million and over.

2

Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal A g e n c i e s .




first time.

—
local

Table 8

STOCK PRICES AND VOLUME
TRADING V O L U M E 2 '

STOCK PRICES1DATE
NYjSE INDEX

-

High
Low

.

-

High
Low

!

-

3

D J . INDUSTRIALS

'

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)

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)

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

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

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

High
Low

AMEX

NYSE

AMEX *

! - 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
1004.21
1020.02

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

Jan.

5

65.22

1047.49

26.68

19.3

4.0

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.

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

13
T A B L E 9: Security Credit

r
END OF PERIOD
Outstanding;
1971 - Oct.
Nov.
Dec.

CREDI1 EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS' I BANKS 2 1 TOTAL

jCUSTOMERS'
! NET DEBIT
BALANCES

NET CREDIT
CUSTOMERS' NET EXTENDED BY
BROKERS AND
FREE CREDIT
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)

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

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

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

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

1

2
3

--_

60
10
50

—
- -- - -

.

- —
- - -

-- -

.

268
54
-30
-53
•129
-99
14
-128
-61
-41

—

—
—
—
—

M a r g i n d e b t , as r e p o r t e d b y the N e w Y o r k S t o c k E x c h a n g e .
A l t h o u g h margin debt
until M a r c h 1968 i n c l u d e d l o a n s s e c u r e d by U . S . g o v e r n m e n t s , the a m o u n t of such
loans
"Bank

i n c l u d e d is t h o u g h t to h a v e b e e n s m a l l .
loans to o t h e r s than b r o k e r s and d e a l e r s

for p u r c h a s i n g or c a r r y i n g

v e -

r i t i e s o t h e r than U . S . g o v e r n m e n t s . "
T h e d i f f e r e n c e b e t w e e n c u s t o m e r s ' n e t d e b i t b a l a n c e s and customers' net free c r e dit b a l a n c e s , t h i s figure r e p r e s e n t s the net c r e d i t e x t e n d e d by b r o k e r s 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 .
NOT!W i t h the e x c e p t i o n of b a n k loan d a t a , f i g u r e s are s u p p l i e d by the N e w Y o r k
S t o c k E x c h a n g e and a r e end of m o n t h d a t a .
B a n k l o a n s a r e for w e e k l y r e p o r t i n g
larac commercial banks.
B r o k e r d a t a i n c l u d e s l o a n s for r e g u l a t e d s e c u r i t i e s ; b a n k
data i n c l u d e s l o a n s for the p u r p o s e of p u r c h a s i n g or c a r r y i n g a n y s e c u r i t y , w h e t h e r

4

regulated

or n o t .

Series discontinued




T A B L E 10: S a v i n g s F l o w s at Nonbank Depositary Intermediaries
($ m i l l i o n s )

DATE

1969
1970
1971

SAVINGS ,
Sc LOAN ASSOCIATIONS
MUTUAL SAVINGS BANKS
NET
N ET
SHARE CAPITAL 1
REGULAR DEPOSITS 3
NEW
NEW
ANNUAL
ANNUAL
MONEY2
NET
GROWTH
GROWTH
MONEY 2
NET
1
1
FLOW
RATE
RATE
FLOW
2,549
4,517
9,623

4.0
6.8
13.5

-763
936
5,678

Not Seasonally Ad just Vli
4,068
3.1
-1,003
10,965
8.1
5,285
28,244
19.4
20,652

TOTAL
DEPOSITS
| NET
N EW
ANNUAL
NET
MONEY2
GROWTH
1
RATE
FLOW
6,617
15,482
37,867

3.4
7.7
17.5

-1,766
6,231
26,330

\
September
October
November
1972 - September
October jj/
November el

793
382
631
1,025
469
625

--—
---

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

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.

--__
---

J

Seasonally Adjusted
1972 - May
June
July
Augus t
September
'
October jj/
November e/
1
2
3

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 p e r c e n t a g e i n c r e a s e in d e p o s i t s .
Net N e w M o n e y is n e w d e p o s i t s net of both w i t h d r a w a l s and i n t e r e s t .
Data for S M , s are I'Uninsured a s s o c i a t i o n s o n l y , w h i c h r e p r e s e n t 967, of i n d u s t r y total r e s o u r c e s .
R e g u l a r d e p o s i t s at m u t u a l s a v i n g s b a n k s e x c l u d e items such as C h r i s t m a s club and c e r t a i n
e s c r o w a c c o u n t s , w h i c h r e p r e s e n t a v e r y small part of total d e p o s i t s .
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 S a v i n g s H a n k s and Federal Home Loan Hank H o a r d .




—-

T A B L E 11:

1
DATE

(

TOTAL

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

TOTAL

1

NKT CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS '
BANKS
(Nj Y. STATE)

(Billions of Dollars, Sea sonally Adjusted)
Sept.
Oct.
Nov.
Dec.
•72 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept. r/
Oct. 2./

16.4
16.3
16.6
16.6

13.2
13.1
-13.2
13.1

17.0
18.3
19.5
20.5
21.7
21.7
22.0
22.7
23.3
23.4

13.3
14.2
15.2
16.0
17.1
17.2
17.5
18.0
18.3
18.4

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
. 30
1.34
1. 19
.99
1.22
.40
.33
.67
.59
. 11

-.07
-.05
.08
-.06
.12
.97
.97
. 79
1. 13
.48
.39
.42
.33
. 14

Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. Net changes
are derived directly from unrounded outstandings levels as reported and after
seasonal adjustment by Federal Reserve. Subtotals may not add to totals because
of rounding.




. 14
.07
.12
. 15
. 18
.37
.22
.20
.09
-.08
-.06
.25
.26
-.03

16

T A B L E 12:

Net Change in Mortgage Holdings

1

FINANCIAL INSTITUTIONS
TOTAL
INCLUDING

COMMERCIAL
BANKS

FNMA-CNMA

MUTUAL
SAVINGS

BANKS

SAVINGS & | L I F E
LOAN
I INSURANCE
ASSOC.

, COMPANIES

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

21,273

6,677

2,787

19,699
16,827

2,682

41,647

39,259

5,404
2,462
9,940

4,958
5,724

4,674
5,692

4,872
5,931
5,286

4,717
5,563
4,918
4,684

3,847
4,371

3,558
4,118

3,456
3,828

3,250
3,550

4,464
4,363
4,908
5,189

4,329
4,327
4,521

4,731
5,471
4,981
n. a.
n. a.

4,593

1,500

1,600
1,500

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

9,350
9,561

2,459
2,052
2,348

1,845
3,938

10,172
24,160

1,221

454
585
380

2,720
3,453
2,758

24
54
79

553
502
472
n. a.

3,313

97
90
139

2,926
2,673
2,692

Seasonally Adjusted (r)

5,060
5,179
4,714
4,738

80

468
524

2,101
2,367

365

1,112
1,178
1,264
1,361

290
315
464
400

1,871
2,075
2,596
2,481

-23
-18

1,434
1,489
1,451
1,477
1,155
1,393
1,524

453
516
363
515
537
484

2,567
2,959
2,678
3,108
2,911

909

862

2,726
2,856

5
85
67
96

101
79

111
135

n. a.

M o n t h l y d a t a for c o m m e r c i a l b a n k s b a s e d on F e d e r a l R e s e r v e e s t i m a t e s b e n c h m a r k e d
to C a l l R e p o r t d a t a on real e s t a t e l o a n s o u t s t a n d i n g as a v a i l a b l e .
O t h e r data
d e r i v e d fnfcm m o r t g a g e debt o u t s t a n d i n g as r e p o r t e d s e p a r a t e l y by N a t i o n a l A s s n .
of M u t u a l S a v i n g s B a n k s , Federal H o m e L o a n B a n k B o a r d , I n s t i t u t e of L i f e I n s u r a n c e
a n d , t h r o u g h A u g u s t 1968, the F e d e r a l 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 therea f t e r by FNMA and the G o v e r n m e n t 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 .
Data for m u t u a l
savings
derived

b a n k s and for L i f e I n s u r a n c e c o m p a n i e s m a y d i f f e r somewhat from those
from r e g u l a r q u a r t e r l y s e r i e s b e c a u s e of m i n o r c o n c e p t u a l d i f f e r e n c e s

for

w h i c h a d j u s t m e n t s are not m a d e in the m o n t h l y s e r i e s .
A l t o g e t h e r , these g r o u p s
a c c o u n t e d for 87 per cent of the net i n c r e a s e e s t i m a t e d for all h o l d e r s in 1967.




17

TABLE 13: Net Increases in Mortgage Debt Outstanding

1

Billions of dollars, SAAR -

1- to 4- MULTIQUARTER

1967 - I
II
III
IV

1968 - I
II
III
IV

1969 - I
II
III
IV

1970 - I
II
III
IV

1971 - I
II
III
IV

1972 - I
II
Ille

TOTAL

RESIDENTIAL3

FAMILY

FAMILY

COMMERCIAL

. MULTI-AND
COMMERCIAL

7.28.4
8.8
8.5

FARM
1.8
1.8
2.5
2.8

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

19.4.
18.2
17.4
20.-2

16.2
15.0
13.9
16.3

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

31.8
29. 1
26.2
24.9

23.6
21,5
19.0
18.2

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
10.1
10.0
10.5

2.2
2.2
1.7
1.4

20.6
22. 9
29.1
31.3

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

14.8
14.9
14.9

24.4
24.8
25.3

2.6
2.6
2.9

16.0
20.8
26.3
27.2
28.1
26.4
25.8
29.4

,
'

9.6
9.9
10.4

1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance
C o r p o r a t i o n , Federal Home Loan Bank Board, Institute of Life Insurance
National Association of Mutual Savings Banks, Departments of C o m m e r c e and A g r i culture, Federal National Mortgage A s s o c i a t i o n , Federal Housing A d m i n i s t r a t i o n
Veterans A d m i n i s t r a t i o n and C o m p t r o l l e r of the C u r r e n c y .
Separation of nonfarm m o r t g a g e debt by type of property, where not available, and interpolation*
— n d extrapolations, where required, estimated m a i n l y bv Federal Reserve
2 M a y differ somewhat from related flow of f t i H d T l i H e l mainly b e ^ U F T ^ f m o r e
aggregative type of seasonal adjustment.
3

Residential mortgage 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:

WEEK
ENDED

FNMA Weekly

M

Auction" Results

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD^(per cent)
ACCEPTED
901-YEAR"
904
1-YEAR 1
6TOTAL
TOTAL
6MONTH & OVER
DAY
& OVER
DAY
OFFERED
MONTH
7.62
-—
113.0 113.0
-123.9

1972 - July

24

Aug.

7
21

106.2
114.6

81.7
87.2

81.7
87.2

——

——

--

—

7.63
7.62

---

—
—

5
18

220.6
295.9

151.2
148.1

151.2
148.1

—

--

7.63
7.65

—

--

2
16
30

352.8
271.2
186.4

211.5
224.9
162.7

211.5
224.9i
162.7

——

7.69
7.72
7. 72

—

—

— ..

7.71
7.69
—
—

—

;.
Sept.
Oct.

,

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

—

--

---

7.67
7.67

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments.
requf§!dSpS?c6is^ aKl^SEdtil^l
«
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 38 basis points fee paid by investors
to servicers.




T A B L E 15:

Private Housing Starts and Permits

STARTS
SEASONALLY ADJUSTED
ANNUAL RATE'
TOTAL V,FAMILY 2 OR MORE

| 2,228. 1,242
2,457 1,347

1971

-November
December

1972

2,487 i,:4i5
-January
2,682 1,325
February
2 , 3 6 9 1^302
March
2,10? .1,167
April2,350 1.344
May '
2,330 1,296
June
2,218 1,289
July 1
2,484 1,410
August
2 , 3 9 7 1,383
September
October j \ 2,435 1,299
November^
2,445 1.345

UNADJUSTED
TYPE OF FINANCING

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

1,071
1,357
1,067
942
1,006
1,034
929
1,074
1,016
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

37.4 7.5
27.8 8.0
37.710.5
29.1 8.5
32.4 9.4
31.9 9.626.2 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 a r e C e n s u s e s t i m a t e s 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
noi.-issuing areas.' A d w e l l i n g unit is started w h e n e x c a v a t i o n b e g i n s ; all u n i t s
FHA and VA
in an a p a r t m e n t s t r u c t u r e are c o n s i d e r e d started at that time.
starts are u n i t s started u n d e r c o m m i t m e n t s by these a g e n c i e s to i n s u r e or guara n t e e the m o r t g a g e s .
A s r e p o r t e d by FHA and V A , a unit is started w h e n a field
o f f i c e r e c e i v e s the first c o m p l i a n c e i n s p e c t i o n r e p o r t , w h i c h is m a d e b e f o r e
footings are poured in some c a s e s but n o r m a l l y a f t e r the f o u n d a t i o n s h a v e b e e n
completed.
O t h e r starts are d e r i v e d as a r e s i d u a l , a l t h o u g h total and FHA and
VA starts are not s t r i c t l y c o m p a r a b l e in c o n c e p t or t i m i n g ; o t h e r starts inc l u d e both units financed by c o n v e n t i o n a l m o r t g a g e s and u n i t s w i t h o u t m o r t g a g e s .

Building permits are Census estimates based on 13,000 or all known permitissuing places. Unlike starts, seasonally adjusted building permits reflect
direct adjustment for differences in the number of days per month, as well as
other differences in*timing and coverage.




T A B L E 16: Mortgage and Bond Y i e l d s

DATE

FHA
MORTGAGES
30-year

2

1

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 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

7.49
7.46
7.45
7.50
7.53
7.54
7.54
7.55
7.56
7.57
7.57

7.60
7.60
7.55
7.60
7.60
7.60
7.65
| 7.65
7.70
7.70
7.70

.11
.14
. 10
.10
.07
.06
.11
. 10
.14
.13
.13

7.21
7.34
7.24
7.45
7.38
7.32
7.38
7.37
7.40
7.38
7.09

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

July
August
September
October
November

1

2

.19
.61

.Neither m o r t g a g e nor bond yields include a l l o w a n c e for servicing costs which arc
m u c h higher for m o r t g a g e s than for b o n d s .
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 yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
Based on F H A - f i e l d - o f f i c e opinions about average bid prices in the private
secondary m a r k e t for new-home m o r t g a g e s for immediate delivery.
Separate
data a v a i l a b l e for 25-year a n d — b e g i n n i n g July 1961--30-year mortgages with
m i n imum downpayments, weighted by probable volume of transactions.
Yields
computed by FHA, assuming prepayment period of 12 years for 25-ye^r mortgages
and 15 years for 30-year m o r t g a g e s .

3

Based on FHA-field-office opinion on typical contract interest rates (rounded)
on conventional first mortgages prevailing in the market areas of insuring
offices.
4 See note for Table 1. ...
5 Yield spread equals conventional mortgage rate less FHA secondary market yield.
6 Yield spread equals FHA secondary market yield less new Aaa corporate bond
yield.




21
TABLE 17:
NEW HOMES
CONFEES &
TRACT CHARGES EFFEC-iMATURITY
RATE
(PER
TIVE
(YEARS)
(PER
CENT) RATE
CENT)
2
3
1971
Nov.
Dec.

7.65
7.62

0.87
0.93

7.79
7.77

26.7
26.6

Conventional Mortgage Terms

LOAN/
PRICE
RATIO
(PER
CENT)

LOAN
AMT.

($000)

1

EXISTING HOMES
CONFEES &
LOAN /
T R A C T C H A R G E S E F F E C - M A T U - PRICK
RATE
(PER
TIVE
RITY
RATIO
(PER
CENT) RATE
(YEARS) (PER
CENT)
C
ENT)
2
3

LOAN
AMT.

($000)

75.4
74.5

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

26.5

75.0

27.2

76.5
76.2

27.6
27.8

7.45

27.0

0.82
0.79
0.77
0.78
0.77

7.58
7.48
7.44
7.42
7.46

24.7
25.4
25.1
25.2
25.2

74,
75.
75.
75,
75.

24.1
24.8

0.78
0.83
0.81

7.49
7.50
7.52

25.5
25.6
26.3

76.
76.
76.

0.83
0.84
0.84

7.55
7.57
7.58

26.2
26.1
26.3

76.
76.
76.

1972
Jan.
Feb.
March
April
May

62

0.95

45

1.02

38
38

0,84

7.78
7.61
7.52

0.83

7.51

0.84
0.85
0.83

27.2
27.2

76.0
76.2

0.86
0.86
0.88

7.53
7.55
7.56
7.59

27.2
27.2
27.5

7.57
7.62

27.3
27.2

76.5
77.0
77.5
77.5
77.3

27.9
27.9
27.4

7.36
7.37
7.39
42
7.43

0.91

7.65

27.5

77.3

28.0

7.44

40
41
43
45

July
Aug.
Sept.
Oct.

r/

Nov.

£/

43
48
50

28.2
28.5
28.5
27.8

28.2

35
7.31
7.30
7.33

C o m p i l e d by Federal H o m e L o a n B a n k Board in c o o p e r a t i o n with Federal Deposit Insurance
Corporation.
Data are weighted averages based on probability sample survey of characteristics of c o n v e n t i o n a l first m o r t g a g e s originated by m a j o r institutional lender
groups (including m o r t g a g e c o m p a n i e s ) for p u r c h a s e of single 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 m o d e r n i z a t i o n ; construction loans to
h o m e - b u i l d e r s ; and permanent loans which are coupled with construction loans to ownerbuilders.
Related series on conventional m o r t g a g e rates only, based on unweighted
opinions of field-office directors of the Federal H o u s i n g A d m i n i s t r a t i o n , are available
somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case
of n e w home m o r t g a g e rates — in T a b l e 16.
Fees and c h a r g e s - - e x p r e s s e d as a percentage of the principal m o r t g a g e amount — include
loan c o m m i s s i o n s , fees, discounts, and other charges which provide added income to the
lender and are paid b y the b o r r o w e r .
T h e y exclude any closing costs related solely to
transfer of p r o p e r t y ownership.
3

Includes

fees & c h a r g e s amortized over a 10 year period in addition to the contract

interest rate.




24.4
24.9
24.6
25.2
25.2
25.4
24.8
25.0
25.4