Full text of H.16 Capital Market Developments : July 19, 1971

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

IBD£NM

f

^

£>/- • & •<&

L.5.8 Confidential (F.R.)

July

DECOraOLLED AFTER SIX MOHTHS

APITAL
MARKET
DEVELOPMENTS

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




, 1971

INDEX
Developments in the Corporate and Municipal Bond Markets
Capital Market Yields
Capital Market Volume
Stock Market
Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r
n.a.

Revised
Not available




TABLE 1: Yields, Volume and Reception
YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

WEEK ENDING:

1971 - June

July

4
11
18
25

7.79
7.93
8.05
7.84

7.70
7.66
7.63
7.62

2
9
16
23

7.89
7.87
7.82

7.63
7.65
7.64

YIELDS
MOODY'S
BOND BUYER
SEASONED
SEASONED 20
Aaa
BOND INDEX

WEEK ENDING:

1971 - June

4
11
18
25

July

2
9
16
23

'

CORPORATE BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
220
92
n.a.
355
79
839
98
634
76
310
99
238
450e

88
86
58

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

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
' GROSS
SOLD BY END
OF WEEK
OFFERINGS

BONDS SCHEDULED ,
WITHIN 28 DAYS

5.50
5.60
5.70
5.80

5.70
5.87
6.00
6.23

320
429
486
405

80
70
73
71

806
851
918
1,351

5.90
5.70
5.70

6.19
6.06
6.03

331
633
347
56 2e

88
86
76

1,219
916
1,059
n.a.

1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds
with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial
and convertible issues, offerings of natural gas pipeline and foreign companies, and
bonds guaranteed by the Federal Government.)
2 Millions of dollars unless otherwise indicated.
Note:

See footnotes to Table 3




,

TABLE 2: Details on Inventories
DATE
OFFERED

1

7/15
7/13
7/13
7/8
7/7
6/29

OFFERED

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND
ISSUER
\
YIELD CALL PROTECTION
COUPON

AMOUNT
M I L . $)
50.0
15.0
150.0
30.0
15.0
20.0

DATE
| RELEXSED

Columbia Broad Sys.
Indiana Gas
N.Y. Tel.
Carrier Corp.
Wash. Gas Lt.
A C F Ind.

7.,80
8..25
8.,00
8--1/8
8•-3/8
8,,40

7.,85
8,,30
7.,90
8,,25
8.,25
8,,40

Aa
A
Aaa
A
A
A

10 yrs.
5 yrs.
5 yrs.
10 yrs.
5 yrs.
n.c.

ESTIMATED PROPORTION SOLD
95%
95%
35%
90%
45%
85%

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER
COUPON
IN YIELD CALL PROT. PORTION RELEASED
YIELD

AMOUNT

None

INVENTORIES 1
MUNICIPALS
BLUE LIST
1
IN SYNDICATE

DATE
1971 - June 18
25
July

2
9
16

CORPORATES
IN SYNDICATE

656
603

226
203

20
149

495
499r

.91
129

113
27

115
ii. a
116
N.C. - No call protection.
1
All figures in millions of dollars. Blue List is daily average for week ended Friday, except for latest v : o e k
v'hich is daily average of three days endt-d Wednesday. All other figures are as of Friday.




TABLE 3: High Grade Bond Yields

DATE

1969 - High
Low
1970 - High
Low
1971 - High
Low
1971 - June 11
18
25
July 2
9
16
1

NEW
CORPORATE
Aaa 1
8.85
6.90
9.30
7.68
8.23
6.76

(12/5)
(2/21)
(6/19)
(12/18)
(5/21)
(1/29)

7.93 '
8.05
7.84
7.89
7.87
7.82

MOODY'S SEASONED
CORPORATE
Aaa2
7.84
6.55
8.60
7.48
7.69
7.06

(12/26)
(1/12)
(7/3)
(12/31)
(6/4)
(2/12)

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3
6.97
5.96
7.55
6.17
6.51
5.69

(12/26) '
(1/24)
(5/29)
(12/18)
(6/18)
(3/23)

BOND
BUYER'S
SEASONED
MUNICIPALS 4
6.90
4.82
7.12
5.33
6.23
5.00

7.66
7.63
7.62

6.32
6.51
6.44

5.87
6.00
6.23

7.63
: 7 .65
' 7.64

6.44
6.38
6.30

6.19
, 6.06
6.03

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 2G bonds used in this index
' falls midway between the four top groups as classified by Moody's Investors Service.
Note--Highs and lows are for individual series and may be on different dates
for different series.




(12/18)
(1/28)
(5/29)
(12/11)
(6/24)
(3/18)

6
TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
CORPORATE1

PERIOD
1971

STATE AND LOCAL 2

1970

1969

1971

1970

1969

January
February
March

3,115
3,000
6,075

2,636
1,802
3,539

2,075
2,045
2,098

2,702
1,833
2,107

1,340
1,214
1,555

1,262
987
538

April
May

4,007
3,174
4,100e

3,170
3,909
3,389

2,748
2,076
2,530

1,888
2,106
l,900e

1,647
996
1,085

1,801
1,110
737

July
August
September

2,768
2,274
3,518

2,478
1,427
2,427

1,348
1,359
1,758

1,097
808
559

October
November
December

3,777
4,182
3,980

1,933
2,375
2,532

1,924
1,748
2,190

1,280
886
816

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

6,218
7,354
6,332
6,840

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

2,787
3,648
2,464
2,982

18,445
27,005
38,944

13,572
19,904
26,744

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

12,190
ll,281e

6,642
5,894e

7,837
12,302
18,164

6,435 1
8,899
11,881 j

Excluding finance companies 3
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

6,170
7,037

Year
V
2
3

Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total gross proceeds excluding offerings of sales and consumer finance
companies.




J

- .*i '• JK «-

7

TABLE 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:
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
PLACED
STOCK
FOREIGN | CONVERTIBLE
OFFERED

1970 - II

10,468

6,994

1,282

2,190

III
IV
1971 - I
II £/

8,560
11,938
12,190
11,281

5,987
7,827
8,369
6,515

914
1,421
1,516
1,618

1,659
2,690
2,306
3,145

1970 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.

3,389
2,768
2,274
3,518
3,777
4,181
3,979

1,931
1,831
1,731
2,425
2,390
3,001
2,436

436
320
205
389
304
283
834

1,021
617
338
704
1,083
898
709

1971 - Jan.
Feb.
Mar. .

3,115
3,000
6,075

2,033
2,201
4,135

594
275
647

489
524
1,293

4,007
3,174
4,100

2,118
2,097
2,300

473
445
700

1,415
630
1,100

Apr.
May
g/June
1

<

135
83
226
84

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

OTHER
ISSUERS1

2,162
868
1,346
1,606
876

3,048
2,663
4,020
3,594
4,496

710
287
737
824
1,362

2,445
2,314
3,169
3,794
3,281

2,812
2,714
3,406
3,197
2,627

26
68
11
4
56
11
159

82
107
59
121
388
184

939
638
682
994
1,006
1,107
1,056

1,103
843
630
1,241
1,101
j 1,350
955

353
144
279
445
371
693
282

994
1,143
682
838
1,300
1,033
1,687

43
3
38

99
168
557

716
661
2,417

676
1,069
1,452

391
683
532

1,332
587
1,675

1,115
766
1,400

1,265
587
775

269
407
200

1,358
1,413
1,725

113
35
n.a.

1

165

384
253
725

'
L

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 .




COMMUNICATIONS

\
TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1
July 5 thru July 16, 1971

ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

Corporatea
Penna. Pwr. & Lt. Co.
Carrier Corp.
Quaker St. Oil Refining Corp.
Washington Gas Lt. Co.
Wisconsin Pwr. & Lt. Co.
American Century Mtg. Inv.
New York Telephone Co.
Indiana Gas Company
* AT&T
Duquesne Light Co.
Cartridge T.V. Inc.
Property Capital Trust
C.B.S.




2um Pref.
40.0
Stk.
Sr.debs w/w
30.0
3ap. Stk.
16.6
15.0
1st. Mtg.
30.0
Let. Mtg.
)ebs.
25.0
150.0
1st mtg
15.0
1st mtg
3onv. pref 1,375.0
35.1
Com. stk
22.0
3om. stk
15.8
Benf int.
50.0
Debs

-m

1996

•--

8.13

—

8.25

A

--

--

8.25
8.00
6.75
7.90
8.30
8.00

A
Aa

1996
2001
1991
2008
1996

8.38
8.00
6.75
7.96
8.20

--

--

—

--

--

--

—

--

--

--

--

—

—

2001

7.85

7.85

mm —

Aaa
A
—

--

A

TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1

ISSUER

TYPE

State and Local
Penna, State of
Bds.
New York
G.O.
•Massachusetts
G.O.
Boston, Mass.
G.O.
Delaware Co. Coram Coll Auth, Pa. Rev.
Pueblo, Colo.
G.O.
Port of Oakland, Calif.
Rev.
Pott of Oakland, Calif.
R*v.
Santa Ana Unified S/D, Calif,
G.O.
Murray State University, Ky
G.O.
Gloucester, Mass.
\ Bds.
Chicago Bldg. Commission
Rev.
N
Houston ISD, Texas
G.O.
Michigan St. Housing Dev Auth
Rev.
Michigan St. Housing Dev. Auth
Rev.
Murray State University Ky.
Rev.
.Oklahoma City
G.O.
Muskegon Co., Mich.
G.O.
Texas
G.O.
Gloucester Co Server Auth, N.J. Rev.
*
1
2

3

2

AMOUNT
(MILLIONS
OF
DOLLARS)
70.0
357.1
125.0
25.0
17.0
16.1
3.5
16.3
15.0
2.7
10.8
55.0
10.0
15.0
25.0.
12.5.
14.1
16.0
12.5
20.0

MATURITY

1972-2001
2012
1972-2019
1972-91
1973-2000
1972-1985
1974-1981

COUPON
l
RATE OR
j OFFERNET INTER-' I INC
EST COST
| YIELD
5.79
7.58
5.43
6.48
6.18
6.20

3.30-6,40
5.50-7.80
3.40-6.20
4.25-7.00
WW

•
»—

—

1972-1995
1973-2000
1972-1991
1973-1991
1972-1981
1973-2004
1974-2015
1973-2000
1974-1996
1972-1991
1976-1991
—

5.58
7.07
**

6.48
; 4.19
6.92
6.92
7.08
5.36
-——

•

#.**

3.50-5.70
5.00-6.75
8.00
3.40-5.90
4.25-7.20
3.40-6.00
3.50-6.90
N.R.
4,10-7.10
4.40-7.00
4.25-7.20
3.75-6.30
4.15-5.85
3.90-5.50

MOODY'S
RATING

Aa
Baa-1
Aa .
Baa
-- '
--

—

Baa
Aa
A
A-l
A
A
Baa
A
Aa
Aaa

4.75

Rights offering.
1^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 quasi-utilities; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenuje
bonds secured solely by lease payments.
1
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




'

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)
AMOUNT
(MILLIONS
OF
DOLLARS)

ISSUER

As of July 16, 1971
APPROXIMATE DATE
OF OFFERING

Corporate
Gulf Life Holding Co.
Debs
Guardian Mtge Investor
Debs
General Waterworks" Corp.
1st mtg
Ford Motor Co.
Notes
Chrysler Financial Corp.
Notes (5 yrs)
Continental Can Co
Notes
Flintkote Co.
Debs
Commonwealth Edison Co.
1st mtg
Int'l Harvester Credit Co.
Debs
'Alabama Pwr Co.
Bonds
Diamond State Tel. Co.
Debs
Philadelphia Elec. Co.
1st mtg
McDonald Corp
Debs
Gen'l Portland Cement Co.
Debs
Pepsico Inc.
Conv debs
First Wisconsin Bkshares
Debs
Valu Vend Credit Corp
Debs
Cleveland Elec 111
Com stk
Monumental Corp
Notes
Debs
Interlake Inc
Beneficial Corp
Bonds
Beneficial Corp
Bonds
Microdot Inc.
Notes
Central Tel & Util Corp
1st mtg^
General Tel Co of the S.E.
Bonds
1st mtg
Consumer Power Co.
Genstar Ltd
Debs
Bank of California
Conv debs
Debs
. Equimark Corp
1st mtg
Pub Serv Co of N. Mexico
debs
GAC Properties Credit Inc.
Indiana Bell Tel. Co.
Debs
Louisville Gas & Elec Co
Debs
1st mtg
Dayton Pwr & Light Co
Pref stk
Dayton B?r & Light Co.
1st mtg
Jersey Central R/r & Lt. Co.
Public Service Elec & Gas Co. Debs
/ Public Service Elec & Gas Co. Debs
Debs
•Cincinnati Bell Inc
Pfd stk
Arkansas Pwr & Light Co.
Debs
Penna Elec Co
1st mtg
Arkansas Elec Co.
Southern Bell Tele Co.
Debs
VEPCO
VEPCO
Southwestern Bell Tel.




1st mtg
Com stk
Debs

25.0
30.0
25.0
100.0
100.0
60.0
40.0
100.0
50.0
85.0
15.0
80.0
25.0
22.0
50.0
50.0
25.0
50.0
20.0
60.0
25.0
50.0
20.0
20.0
40.0
120.0
25.0
20.0
15.0
20.0
50.0
100.0
100.0
45.0
20.0
25.0
75.0
85.0
50.0
15.0
20.0
30.0
175.0

July
July
July
July
July
July
July
July
Jtely
July
July
July
July
July
Jely
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
July
August
August
August
August
Autust
August
August
Autust
August
August
August
August

50.0
80.0
200.0

September
September
September

19
19
19
19
19
20
20
20
20
21
21
26
27
28

3
3
5
5
10
17
17
17
19
19
19
24
8
8

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
'
(Other than U.S. Treasury)'
As o f J u l y 16> 1 9 7 1

ISSUER
State and Local
Cook Co. BSD #214, III.
Arlington Hgts & Mt. Prospect
S/D #214, 111.
Florida, State of
*0regon, State of
Indianapolis, Ind.
Ohio Rib Fac Conm
Maryland, State of
Louisville & Jefferson Co Metro
Sws Dist, Ky
N Y. State Dorm Authority
Milwaukee, Wise.
Biloxi, Miss
Baton Rouge, La.
East Baton Rouge Parish, La
Oakland Co., Mich.
Houston, Texas
Memphis, Tenn
East Bay MUD, CAL
Los Angeles DWAP
Ohio, State of
Kansas-Nebraska Nat. Gas Co.
South Carolina Bib Ser.

*
1
2

TYPE

G.O.

AMOUNT
(MILLIONS
OF
DOLLARS)

^

APPROXIMATE DATE
OF OFFERING

10.5

July

19

10.5
25.0
60.0
12.0
50.0
79.3

July
July
July
July
July
Jyly

19
20
20
20
21
21

July
July
July
July
July
July
July
August
August
August
August
August
August
August

22
26
27
28
28
28
28
4
10
10
11
26

-

G.O.
Rev.
G.O.
G.O.
Bonds
G.O.
Rev.
Rev.
G.O.
Rev.
G.O.
G.O.
Bonds
G.O.
G.O.
G.O.
Rev.
G.O.
S.F. debs
Rev.

30.0
26.9
15.0
69.0
15.1
15.0
12.2
26.5
29.0
12.0
39.0
100.0
15.0
100.0

.

^/

Included in table for first time.
.
Includes corporate and other issues of $15 million and over; State and local
Government issues of $10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.




12

STOCK PRICES AND VOLUME
STOCK PRICES 1 NYSE INDEX3"

DJ.INDUSTRIALS

TRADING VOLUME 2
AMEX 4 -

NYSE

1969 - H i g h
Low

50.32
49.31

(5/14) 968.85 (5/14) 32.91
(7/29) 769.93 (12/17)25.02

(1/3) 16.5 (3/29) 8.0 (1/31)
(7/29) 8.6 (8/29) 3.6 (11/21)

1970 - High
Low

52.36
37.69

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

(5/27)

1971 • High
Low

57.76
49.73

(4/28) 950.82
(1/4) 830.57

(12/4) 7.1
(8/14) 1.8

(4/28)26.68
(1/4) 22.72

(4/28) 22.1
(1/4) 12.5

(2/12) 6.7 (2/12)

7.8

(7/2)

2.9

June

4
11
18
25

55.95
55.80
54.63
54.10

922.15
916.47
889.16
876.68

26.07
25.90
25.38
25.18

15.7
13.3
13.7
13.3

4.3
3.3
3.4
3.2

July

2
9
16

55.18
55.76
54.97

890.19
901.80
888.51

25.52
25.83
25.61

12.5
12.9
13.4

2.9
3.4
3.2

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
Days/
Through:
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.




(1/2)

(1/8) 18.5

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

20
22-1/2
25

(8/14)
(7/2)

TABLE 9: Security Credit

END OF PERIOI
Outstanding:

CREDIT EXTENDED TO • *
MARGIN CUSTOMERS BY:
BROKERS 1 | BANKS 2 | TOTAL

CUSTOMERS'
NET DEBIT
BALANCES

-

1970 - May
4,160
3,860
June
3,800
July
.3,810
Aug.
Sept. .3,920
Oct.
.4,010
Nov.
.4,010
Dec. .4,030

2,290
2,290
2,290
2,300
2,330
2,270
2,320
2,330

6,450
6,150
6,090
6,110
6,250
6,280
6,330
6,360

5,433
5,281
(4)
(4)
(4)
(4)
(4)
(4)

,4,000
4,090
4,300
4,530
.4,620

2,300
2,330
2,360
2,340
2,340

6,300
6,420
6,660
6,870
6,960

- 40

-240
-300
- 60
20
140
30
50
30

.1971 - Jan.
Feb.
Mar.
•Apr.
-May

NET CREDIT
CUSTOMERS' NET EXTENDED BY
FREE CREDIT
BROKERS AND
DEALERS 3
BALANCES

2,222
2,009
(5)2,180
2,083
2,236
2,163
2,197
2,286

3,211
3,272
(4)
(4)
(4)
(4)
(4)
(4)

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

2,452
2,743
2,798
2,660
2,550

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

-552
-152

- 26
-213
171
97
153
- 73
34
89

-513
- 61

Change in
Outstanding:.
1970 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1971 - Jan.
Feb.
Mar.
Apr.
May

-200
-300
- 60
10
110
90

-20

- 30
90
210
230
90

-

-

--

10
30
- 60
50
10
- 30
30
30
- 20

- 60
120
240
210
90

w
w
—

-

-

-

~

-

-

-

—'

—

—

-

-

166
291
55
-138
-110

-

-

*

«

-

- .

—

—

—

—

-

-

_ _
w

'w

Margin debt, as reported by the New York Stock Exchange. Although margin debt
until March 1968 included loans secured by U.S. governments, the amount of such
loans included is thought to have been small.
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
The difference between customers' net debit balances and customers1 net free credit balances, this figure represents the net credit extended by brokers and
dealers to the nonfinancial public.
NOTE: With the exception of bank loan data, figures are supplied by the New York
Stock Exchange and are end of month data. Bank loans are for weekly reporting
large commercial banks. Broker data includes loans for regulated securities; bank
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or not.
z"




TABLE 10: Savings Flows at Nonbank Depositary Intermediaries
($ millions)

DATE

1968
1969
1970

MUTUAL SAVINGS BANKS
NET
REGULAR DEPOSITS 3
NEW
ANNUAL
MONEY:
GROWTH
NET
1
RATE
FLOW
4,203
2,549
4,466

1,143
-763
936

7.0
4.0
6.7

TOTAL
SAVINGS & LOAN ASSOCIATIONS
DEPOSITS
NET
SHARE CAPITAL
ANNUAL
NEW ,
ANNUAL
GROWTH
MONEY : NET
GROWTH
NET
RATE 1
FLOWRATE 1
FLOW

NET
NEW
MONEY 2

Not Seasonally Adjusted
2,738
6. 0
7,432
-1,003
3,,2
4,200
5,295
8,,2
11,173

11,635
I 6,749
15,639

3,881
-1,766
6,231

188
705
280

213
1,079
2,305

V

2,092
2,069
1,344

3,012
2,962
3,928

2,743
2,749
1,518

1970 - April
May
June

6
326
504

207
753
1,801

-

M

-136
224
-133

-

•

-

-

1971 r April r/
May £./
June £/

801
800
900

-

-

-

-

2,211
2,162
3,028

-

*

651
680
174

-

W

-

6.3

Seasonally Adjusted
1971 - January
February
March
April r/
May 2.1
June £/

885
939
1,287
1,176
776
783




15.5
15.8
21.2
19.0
12.4
12.4

- - -

«

u

s

3,619
2,472
3,376
2,996
1,998
2,088

29.8
19.8
26.7
23.1
15.1
15.6

(/

25.1
18.5
24.9
21.8
14.2
14.6

4,504
3,411
4,663
4,173
2,774
2,871

- - -

^

.

.

.

.

52
929
147

- - Seaifc,,tto*

1

TABLE 11: Mortgage Commitments at Selected Thrift Institutions 1

DATE

TOTAL

OUTSTANDING COMMITMENTS
|
ALL
MUTUAL
I
SAVINGS &
SAVINGS
TOTAL
LOAN
BANKS
(N.Y. STATE)
ASSOCIATIONS

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollars, Sea: onally Adjusted) 1/
1970 - April
May
June
July

7.8
8.0
8.2
8.6

5.4
5.8
6.1
6.5

2.4
2.2
2.1 .
2.0

Aug.
Sept.
Oct.
Nov.
Dec.

9.8
8.9
9.3
9.6
10.1

6.8
7.1
7.5
7.8
8.1

1971 - Jan.
Feb.
Mar.
April
May

10.4
11.2
12i6
13.8
15.4

8.3
8.9
10.1
11.1
12.3

1

-.08
.20
.17
.37

.21
.34
.26
.41

-.13
-.14
-.09
-.04

2.0
1.8
• 1.8
1.8
2.0

.21
.25
.30
.35
.51

.29
.36
.37
.34
.28

-.08
-.11
-.07
.01
.23

2.1
2.3
2.5
2.8
3.1

.25
.80
1.36
1\30
1.54

.20
.60
1.16
1.01
1.22

.05
.20
.20
.29
32

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. All 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 total# because
of rounding.




15

16
TABLE 12: Net Change in Mortgage Holdings 1
FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
COMMERCIAL
SAVINGS
LOAN
BANKS
BANKS
ASSOC.

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

20,016
23,781
24,189
21,822

18,219
21,273
19,814
16,913

4,639
6,677
5,404
2,462

3,153
2,787
2,682
1,845

7,520
9,350
9,676
10,288

2,907
2,459
2,052
2,318

1,797
2,508
4,375
4,909

1970 - Mar.
Apr.
May

1,154
1,421
1,621

625
944
1,243

49
125
187

153
160
144

198
486
723

225
173
189

529
477
378

1971 - Mar.
Apr.
May

2,690
2,810

2,690
2,920

1,765
. 2,14*
2,182

79
20

0
-110
-50

416
631
789
1,055
983
1,104
1,175
1,289
1,710
1,311
*1,425
1,774
2,044
2,092

191
199
222
213
83
151
200
131
232
24
97
154
38

507
435
468
508
408
364
320
229
100
-33
-87
-8
"79

DATE

LIFE
INSURANCE
COMPANIES

FNMA-GNMA

Not Seasonally Adlusted
1967
1968
1969
1970 2/

1970 - Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1971 - Jan.
Feb.
Mar.
Apr.
May

1,347
1,485
1,749
2,083
1,917
2,192
2,128
2,049
2,604
1,860
1,997
2,888
2,739

840
1,050
1,281
1,575
1,509
1,828
1,808
1,820
2,504
1,893
2,084
2,896
2,818

500
346
256
500
300
315
Seasonally Adlusted
76
157
155
65
81
189
142
165
268
175
328
245
138
295
224
176
250
312
383
175
217
345
380
588
283
453
325
240

'
1

i
i
i

!
i

Monthly data for commercial banks based on Federal Reserve estimates benchmarked
to Call Report data on real estate loans outstanding as available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
of Mutual Savings Banks, Federal Home-Loan Bank Board, Institute of Life Insurance
and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual
savings banks and for Life Insurance companies may differ somewhat from those
derived from regular quarterly series because of minor conceptual differences for
which adjustments are not made in the monthly series. Altogether, these groups
accounted for 8 4 per cent of the net increase estimated for all holders in 1970.




17
TABLE 13: Net Increases in Mortgage Debt Outstanding
Billions of dollars, SAAR QUARTER

TOTAL

RESIDENTIAL^

1- to 4- MULTIFAMILY
FAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

- II
IV ,

18.6
15.1

10.9
9.1

8.3
7.0

2.6
2.1

5.5
4.1

8.2
6.0

2.2
1.8

- I
- II
III
IV

15.9
20.7
26.6
27.3

10.3
13.9
19.2
19.8

7.0
10.5
15.3
16.0

3.3
3.4
3.9
3.8

3.9
5.0
4.9
4.8

7.3
8.4
8.8
8.4

1.8
1.8
2.5
2.8

1968 - I
II
III
IV

27.7
26.2
26.0
29.6

19.0
18.2
17.7
20.2

15.8
15.0
14.1
16.4

3.1
3.2
3.4
3.8

6.4
5.9
6.5
7.5

9.4
9.2
10.2
11.1

2.3
2.2
1.8
1.8

- I
II
III
IV

31.3
28.9
26.5
25.1

25.0
21.5
19.3
18.3

18.6
16.8
14.6
13.0

4.4
4.7
4.7
5.3

6.2
5.2
5.3
5.4

10.4
10.1
io.o
10.7

2.2
2.2
i-5
1.4

- I
II
III
IV

20.2
22.7
28.5
30.5

13.8
16.9
21.2
21.6

8.8
11.5
14.9
15.1

5.0
5.4
6.3
6.4

4.9
4.3
5.2
6.9

9.9
9.7
11.5
,13.3

1.5
1.5
2.1
2.1

- IP

32.9

22.6

15.6

7.0

8.3

15.3

2.0

• •

1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration,
Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolation
and extrapolations, where required, estimated mainly by Federal Reserve.
2 May differ somewhat from related flow of funds series mainly because of more
aggregative type of seasonal adjustment.
.
3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED
Apr. 12
26

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD2(per cent)
ACCEPTED
901-YEARN
TOTAL
6TOTAL
901-YEAR 1
6MONTH & OVER
OFFERED
DAY
DAY
& OVER
MONTH
126.9
687.2

54.5
313.9

39.8
154.0

9.4
126.6

5.4
33.4

7.32
7.43

7.45
7.54

.7.53
7-57

May

10
24

1,168.0
785.7

236.8
151.6

145.8
44.6

71.3
84.4

19.7
22.6

7.57
7.95

7.68
7.97

7.74
8.03

June

1
14
28

322.4
664.4
539.3

146.6
191.2
262.2

77.1
133.7
191.8

57.8
47.3
60.3

11.6
10.2
10.4

8.05
7.91
7.92

8.18
8.15
8.22

8.16
8.22
8.28

July 12

606.0

241.1

161.8;

58.2

21.1

7.98

8.23

8.31

Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, BJLds
i v.i.« Li.»
vvtiV-i ix. uu J, ' ar iimit snnoiifictiu oy •• :*:*.«
^.
accepted by FNMA are for delivery at the seller's option, and at any
time within the specified period. Bids on proposed homes relate to
construction not yet started on which mortgages may be delivered only
after completion and occupancy.
1

For "proposed construction" of new homes only.

2

Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 38 basis points fee paid by investors
to servicers.




19
TABLE 15: Private Housing Starts and Permits
STARTS

DATE

SEASONALLY ADJUSTEDANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

1970 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1,393
1,603
1,425
1,509
1,583
1,693
2,054

835
827
838
881
890
934
1,240

558
776
587
627
693
759
814

1971 - Jan.
Feb.
Mar.
Apr.
May
June g/

1,725
1,754
1,959
1,912
1,959
,982

946
985
1,048
1,098

779
769
911
809
839
817

1,120

1,165

TOTAL

UNADJUSTED
TYPE OF FINANCING
FHA VA
OTHER

BUILDING.
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

135.2
140.8
128.7
130.9
140.9
126.9
121.4

40.7
43.3
34.1
34.3
40.4
33.7
63.2

5.1
5.3
5.6
5.3
5.8
5.5
5.7

89.4
92.1
87.7
91.3
94.7
87.2
52.5

1,285
1,309
1,378
1,388
1,523
1,487
1,768

110.6
102.2

32.2
27.3
33.4
44.6
40.7

4.6
4.7
6.9
8.4
8.3

72.8
68.4
127.6
148 J1
147.9

1,635
1,563
1,627
1,638
1,927
1,817

167.9

201.1
196.9
192.3

Total starts are Census estimates including farm for both permit-issuing and
riou-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started at that time. FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Other starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
Building permits are for 13,000, or all known peirmit-issuing places. Unlike
starts, seasonally adjusted building permits reflect direct adjustment for
differences in the number of working days per month, as well as other
differences in timing and coverage.




20
TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES
DATE
30-year

2

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV, &
FHA MORTGAGES 5

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES 6

1968 - High
Low
1969 - High
Low

7.52
6.78
8.62
7.99

7.40
6.75
8.35
7.55

.02
-.27
-.13
-.40

6.79
6.15
8.75
6.91

1.20
.26
1.08
-.13

1970 - High
Low

9.29
8.40

8.60
8.30

-.10
-.74

9.11
7.80

.99
.01

1971 - Jan.
Feb.
Mar.
Apr.
May
June

——

7.95
7.75
7.60
7.55
7.65
7.70

n.a.

.28
.18
-.10
-. 19

7.24
7.28
7.46
7.57
8.01
7.90

1

2

3
4
5
6

7.32
7.37
7.75
7.89

-.14
-.20
-.26
-.01

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-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Data shown
are for 30-year mortgaged with minimum downpayments, 'and weighted by probable
volume of transactions. Yields computed by FHA, assuming prepayment period of
15 years for 30-year mortgages.
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities
See note for Table 1.
,j,
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
NEW HOMES

DATE

1970
May
Juae
July
Aug.
Sept.
Oct.
Nov.
Dec.
1971
Jan.
Feb.
Mar.
Apr.
May])/

jl
I
f
|
i

2

"3

4

CON- JffiES &
TRACT CHARGES EFFEC- MATURITY
(PER
(YEARS)
RATE
TIVE
CENT) RATE
(PER
CENT)
3
2

1

. 75.

EXISTING HGMI!£;
CON- FEES &
LOAN/
LOAN /
TRACT CHARGES EFFEC- MATU- PRICE
PRICE LOAN
(PER
RATIO AMIc
RATE
TIVE
RITY RATIO
(PER ($000) (PER
CENT) RATE (YEARS) (PER
CENT)
CENT)
CENT)
4
f
3

LOAN
AMT.
($000)
4

8.28
8.31
8.32
8.35
8.31
8.33
8.26
8.20

0.98
0.99
1.01
0.98
1.03
1.05
0.99
1.07

8.45
8.48
8.49
- 8.52
8.48
8.51
8.43
8.38

25.3
25.1
25.1
24.8
25.2
25.1
25.3
25.8

71.7
71.3
71.5
71.6
72.7
72.4
72.1
73.8

25.3
25.6
24.9
25.5
25.3
24.8
25.2
25.8

8.18
8.19
8.21
8.25
8.27
8.20
8.18
8.12

0.94
0.98
0.95
0.89
0.88
0.88
0.85
0.85

8,.34
8 .36
8,.37
8..41
8 .42
8..35
8..32
8,.26

22.8
23.0
23.1
23 1
22.8
22.8
22.7
23.3

70.3
71.5
71.5
71.5
71.7
71.5
71.5
71.9

21.1
21.5
21.7
21.4
21.0
20.5
21.1
21.7

8.03
7.74
7.52
7.37
7.35

0.92
1.00
0.83
0.73
0.71

8.18
7.91
7.66
7.49
7.47

25.8
26.2
25.9
26.3
26.0

73.3
73.9
73.7
73.6
73.6

26.4
26.2
26.0
26.2
26.6

7.94
7.67
7.47
7.34
7.34

0.82
0. 79
. 0.72;
0.75
0.69

8. 08
7.,80
7. 60
7.47
7.45

23.5
24.0
24.1
24.2
23.9

72.5
73.1
73.5
73.6
73.0

22.0
22.5
23.0
23.1
23.3

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 exelude loans for refinancing, reconditioning or modernization; construction loans to
home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted
. opinions of field-office directors of the Federal Housing Administratipn, 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.
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.
Includes fees & charges amortized over a 10 year period in addition to the contract
interest fate.
Derived by FRB.