Full text of H.16 Capital Market Developments : July 2, 1973
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()»!• H.16 J u l y 2, 1 9 7 3 Prepared by the CAPITAL MARKETS SECTION in conjunction with the MORTGAGE, AGRICULTURAL, and CONSUMER FINANCE SECTION •„ - M Ht CAPITAL MARKET DEVELOPMENTS DIVISION OF RESEARCH AND STATISTICS BOARD OF GOVERNORS F E D E R A L RESERVE SYSTEM Washington, D C. 20551 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 REVISED n.a. NOT A V A I L A B L E DATA DO NOT EXIST Table 1 i YIELDS, VOLUME AND RECEPTION CORPORATE BOND MARKET YIELDS WEEK ENDING 1973 - May June 4 11 18 25 1 8 15 22 29 NEW ISSUE A a a UTILITY 1 VOLUME RECENTLY OFFERED A a a UTILITY 7.40 2 3 GROSS OFFERINGS ( $ MILLIONS) PER CENT S O L D BY END O F WEEK NEW ISSUES 4 IN SYNDICATE ( $ MILLIONS) 7.45 7.61 7.42 7.45 7.50 7.55 205 39 154 139 93 97 72 96 61 0 44 6 7.55 7.63 759 7.66 7.73p 7.60 7.59 7.60 7.69 7.72p 433 260 260 305 372 64 100 73 100 81 154 0 100 1 30 MUNICIPAL BOND MARKET YIELDS WEEK ENDING 1973 - May June MOODY'S NEW I S S U E Aaa VOLUME BOND BUYER 20-BQND INDEX 3 GROSS OFFERINGS ( $ MILLIONS) PER CENT S O L D BY END O F WEEK NEW I S S U E S 4 IN SYNDICATE ( $ MILLIONS) 4 11 18 25 4.85 4.85 4.85 4.95 5.10 5.10 5.14 5.20 354 334 540 434 88 64 83 81 72 162 126 143 1 8 15 22 29 5.00 5.00 5.05 5.05 5.10 5.22 5.13 5.13 5.19 5.25 373 239 252 492 830 81 93 65 87 83 101 57 130 111 183 . NOTES: 1 Federal Reserve series of implied yield on newly issued, Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection, released from price restrictions sometime during the last four weeks. 3 Estimated by F.R. on the basis of available data. 4 Corporate Market: Salomon Brothers Bond Market Roundup; Municipal Market: Weekly Bond Buyer. Data are adjusted by Federal Reserve when necessary to make coverage of this series consistent with the gross offerings series. H.16 Table 2 HIGH GRADE BOND YIELDS NEW ISSUE A a a UTILITY DATE 1 RECENTLY OFFERED A a a UTILITY 2 MOODY'S SEASONED CORPORATE Aaa 3 U.S. GOVT. 20-YEAR C O N S T A N T MATURITY 4 B O N D BUYER 1971 - High Low 8.26 (7/30) 7.02 (2/5) 8.23 (1/1) 7.17 (12/31) 7.71 (8/12) 7.06 (2/42) 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..46 ( 5 / 1 2 ) 7.17 (1/7) 7.36 (4/28) 7.05 (12/8) 6.19 (4/14) 5.74 (11/17) 5.54 4.96 1973 - High Low 7.73 (6/29) 7 . 2 9 (1/21-) 7.72 (6/29) 7.28 (1/5) 7.40 (6/29) 7.11 (1/5) 7.10 (6/29) 6.42 (1/5) 5.35 (3/22) 5.03 (1/12) 4 11 18 25 7.40 7.42 7.45 7.50 7.55 7.26 7.26 7.29 7.32 6.94 6.98 6.98 7.03 5. 10 5.10 5.. 14 5.20 1 8 15 22 29 7.55 7.63 7.59 7.66 7.73p 7.35 7.36 7.36 7.38r 7.40p 7.05 7.05 7.02 7.06r 7. lOp 5.22 5.13 5.13 5.19 5.25 1973 - May June 7.45 7.61 7.60 7.59 7.60 " 7.69 7. 72p 5 2 0 - B 0 N D INDEX (4/13) (10/21) NOTES: 1 FedanH Reserve series of implied yield on newly issued, Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection released from price restrictions sometime during the last 4 3 Weekly average of daily closing figures. 4 Weekly average of daily figures. U.S. Treasury data. 5 Thursday figures. The average rating of the 2 0 bonds used in this index falls midway between the four t o p groups as classified by Moody's Investors Service. Weekly Bond Buyer data. H.16* Table 3 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS IN MILLIONS OF D O L L A R S G R O S S PROCEEDS 1 CORPORATE PERIOD 2 S T A T E A N D LOCAL 1972 1971 1973 3,205 3,369 3,229 3,115 3,000 6,075 1,978 1,481 2,353 1,776 2,005 2,239 2,732 1,851 2,258 April May June 3,275 3,598 4,341 4,042 3,300 4,375 1,772 1,989 2,017 2,270 1,891 2,167 2,013 July August September 3,582 2,893 2,720 4,147 2,532 3,768 1,805 1,966 1,726 1,989 1,903 2,098 October November December 3,791 3,377 3,396 3,387 3,704 3,673 2,200 1,861 1,794 1,728 2,264 2,068 9,803 11,214 9,195 10,564 12,190 11,688 10,447 10,764 6,020 6,276 5,494 5,855 6,841 6,081 5,990 6,060 21,017 30,212 40,776 23,844 34,325 45,089 12,296 17,790 23,645 12,812 18,902 24,962 1973 January February Q1 02 03 04 1st Half 3 Qt.rs. Year 2,327 1,962 3,935 8,224 1 NOTES: 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts. 5,812 1 1972 I 1971 Table 4 NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER IN MILLIONS OF DOLLARS G R O S S PROCEEDS BY TYPE OF I S S U E G R O S S P R O C E E D S BY TYPE OF ISSUER BONDS PUBLICLY OFFERED 1972 - II IIL l IV \ COMMON AND PRIVATELY P R EFERRED PLACED STOCK 'MEMO I S S U E S INCLUDED FOREIGN 11,214 9,195 10,564 4,634 4,192 4,158 2 781 1 867 3 147 3 j,7,98 3 J,136 3 , ,258 245 57 J45 CONVERTIBLE k PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS 449 836 428 2, ,109 l ' ,629 l ! ,398 3, ,495 2., 6 8 0 2 j,934 1,,369 856 1,,079 4,240 4,030 5,151 1973 - I 8,224 2,944 1 ;,407 3 j, 9 7 0 n.a. 112 887 2,,427 1,,229 3,681 1972 - Mar. 3,229 1,677 577 976 3 233 604 740 227 1,658 Apr. May June 3,275 3,598 4,1341 1,622 1,676 1,336 789 744 1 ;,218 864 1 ,148 = 1.,786 15 100 130 92 226 131 581 761 767 1 :,219 738 1.,538 178 391 800 1,297 1,708 1,235 July Aug. Sept. 3,582 2,893 2,720 1,807 1,523 863 657 421 789 1= ,118 948 1,,070 3 17 37 450 183 203 574 452 603 798 635 1,,247 586 237 33 1,624 1,568 838 Oct. Nov. Dec. 3,791 3,377 3,396 1,773 1,361 1,024 564 982 1:,601 1., 4 5 4 1.,034 770 28 124 93 162 171 95 383 426 589 1,, 2 8 0 794 860 371 658 50 1,757 1,499 1,895 1973 - J a n . Feb. Mar. 2,327 1,962 3,935 989 641 1,314 287 316 804 1,, 0 5 0 1 ,104 1 ,816 14 27 89 81 28 3 176 213 498 900 596 931 33 174 1,022 1,218 980 1,483 NOTES: 1 MANUFACTURING Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: Securities and Exchange Commission. Estimated data are derived by Federal Reserve based upon available information. LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 June 1, ISSUER TYPE 1973 through June 29, 1973 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OFFERING YIELD MOODY'S RATING CORPORATE L o u i s i a n a Pwr. & L t . G e o r g i a Pwr. Commonwealth E d i s o n Potomac E l e c t . Pwr. B a r n e t t Banks o f F l a . , I n c . F l a . Pwr. C o n s o l i d a t e d N a t u r a l Gas I l l i n o i s Pwr. Consumers Power Co. Atlantic City Elect. . Duke Pwr. G e n ' 1 . T e l . of W i s e . Mountain S t a t e s T e l . A r k a n s a s Pwr. & L t . P a c i f i c Pwr. & L t . C i r c l e Income S h a r e s Ohio E d i s o n A p p a l a c h i a n Pwr. . P a c i f i c Gas & E l e c t . Dow Chemical Delmarva Pwr. & L t . Duquesne L i g h t Peachtree Equity Sec. T o l e d o E d i s p n Co. S-G S e c u r i t i e s 1 s t mtge 1 s t mtge 1 s t mtge Com s t k Com s t k Com s t k 1 s t mtge 1 s t mtge Pref s t k 1 s t mtge 1 s t mtge 1 s t mtge Bonds 1 s t mtge Com s t k Com s t k Com s t k 1 s t mtge Bonds Bonds 1 s t mtge 1 s t mtge Com s t k Pref s t k Pref s t k 45.0 115.0 100.0 60.0 29.5 48.9 50.0 50.0 75.2 * 30.0 100.0 25.0 250.0 40.0 35.7 15.0 62.5 50.0 150.0 100.0 25.0 35.0 35.0 15.0 12.8 2003 2003 2003 - 8.00 7 7/8 7 5/8 7.88 7.85 7.60 A A Aaa —- — -- —— - - —— —— - - —- — —- 7 3/4 7 5/8 7.50 7 3/4 7 3/4 7 3/4 7 3/4 8.00 7.67 7.65 7.65 7.69 7.70 7.77 7.75 7.85 Aa Aa —— —— —- —— — —— —- - - —— —— -- -- 8 1/8 7 3/4 7 5/8 8.00 7 3/4 7.97 7.81 7.63 7.84 7.80 A Aa A Aa 7.80 8.50 7.75 8.50 1998 2003 —— 2003 2003 2003 2013 2003 2003 2005 2003 2003 2003 —— —— —— Aa Aa A Aaa A — —— -- H.16 T a b l e SA LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 June 1, 1973 through June 2 9 , ISSUER AMOUNT (MILLIONS OF DOLLARS) TYPE 1973 MATURITY C O U P O N RATE OFFERING YIELD CORPORATE S-G Securities Iowa P & L Iowa P & L 19.2 11.3 Com s t k Com s t k Pref s t k 10.0 f s NOTES: • Rights offering. corporate and other security offerings of Digitized1 forIncludes FRASER $15 million and over. 7.84 7.84 MOODY'S RATING T a b l e SB C o n t i n u e d LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY June 1, 1973 t h r o u g h June 2 9 . 1973 AMOUNT (MILLIONS OF DOLLARS) C O U P O N RATE OFFERING YIELD MOODY'S RATING S T A T E AND L O C A L HUD A l l e g h e n y C o . , Pa. I n d u s t . Dev. Auth. G r e a t e r Anchorage Area B o r o . , A l a s k a C u l v e r C i t y Dev. A g y . , C a l i f . C u l v e r C i t y Dev. A g y . , C a l i f . C h e s t e r f i e l d C o . , Va. Md. D e p t . o f T r a n s . New J e r s e y Mtge. F i n a n c e Agency W a s h i n g t o n Pub Pwr S u p p l y - S y s . W a s h i n g t o n Pub Pwr Supply S y s . D e k a l b Co. S / D . , Ga. D e k a l b Co. Sch. D i s t . , Ga. Housing bds Rev G.O. Rev Rev G.O. G.O. Rev Rev Rev G.O. G.O. I 264.6 22.0 10.0 13.0 3.6 18.0 50.0 51.5 124.4 25.6 50.0 3.7 2013 1998 1975-1993 1995 1978-1983 1979-1996 1975-1988 1974-1983 2012 1978-1991 — #m 5.52 5.94 5.94 5.28 4.91 5.22 5.65 —— 5.22 5.26 4.00-5.30 5.75 4.50-5.75 - - 4.90-5.20 4.35-5.30 4r20-5.00 4.50-5.00 4.40-5.10 4.20-5.50 —— —— Baa Baa-1 Baa-1 .A-l Aa Aa A-l A-l Aa Aa Table SB LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 June 1 , 1973 t h r o u g h J u n e 2 9 , 2 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) 1973 MATURITY C O U P O N RATE OFFERING YIELD MOODY'S RATING S T A T E AND LOCAL W a s h i n g t o n , S t a t e of G e o r g i a Highway Auth New York S t . Hous, F i n Agcy. Los A n g e l e s DWAP Los A n g e l e s DWAP S e a t t l e , Washington L o u i s i a n a , S t a t e of New C a s t l e C o u n t y , D e l . West V i r g i n i a F l o r i d a , S t a t e of S a l t R i v e r P r o j e c t Agr. Imp & Pwr D i s t . , S a l t R i v e r P r o j e c t Agr. Imp & Pwr D i s t . , Delaware H u n t s v i l l e , Ala. Muskogee Co. Ga. , S/D P o r t o f New York & New J e r s e y Auth. Wash Sub S a n i t a r y D i s t . , Md. 20.0 G.O. 19.0 Ren-rev 168.8 G.O. 23.6 Rev 23.5 Rev 41.5 Ref 40.0 G.O. 19.8 G.O. 40.0 G.O. P o l l Cont Rev 3 9 . 8 41.3 Rev. 33.7 Rev. 40.0 G.O. 12.3 G.O. 12.5 G.O. 100.0 Rev. 27.6 Rev. 1974-1998 1974-1998 1974-2003 1979-1998 2013 1985-2009 1974-1993 1974-2003 1974-1998 1974-2002 2011 1977-1999 1974-1993 1974-1998 2003 2008 1976-2010 ' 4.99 5.13 5.76 — 4.00-5.25 4.10-5.50 4.20-5.90 4.35-5.20 5.29 — 4.79 4.95 4.91 5.13 5.42 5.42 4.83 5.39 5.22 6.02 5.34 4.70-5.60 4.00-5.35 4.00-5.20 4.05-5.60 4.00-5.30 5.60 4.35-5.40 4.10-5.00 4.15-6.00 4.10-5.90 6.00 4.20-5.50 Aa Aa A Aci Aa Aa A-l Aa A-l Aa A-l A-l Aa A A-l A A-l Other Farmers Home Adm. F.N.M.A. Notes Debs 301.0 500.0 1973 7.35 7.25 7.35 7.25 — NOTES: 1 Includes state and local security offerings of $10 million and over. 2 In case of State and local government securities, G O denotes general obligation; Rev.-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., revenue bonds secured solely by lease payments. Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal Agencies. Table 6 ^ FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 As of June 2 9 , 1973 CORPORATES ISSUER *Ford Motor C r e d i t Co *Ford Motor C r e d i t Co. M i c h i g a n C o n s o l i d a t e d Gas A t l a n t a Gas L i g h t Northwestern Public Svc. *Public Service E & G N o r t h e r n I l l i n o i s Gas N o r t h e r n I l l i n o i s Gas B r o o k l y n Union Gas Penn. E l e c t . F i r s t a t Orlando P o r t l a n d Gas & E l e c t . Wise. P u b l i c S e r v i c e *Dial Financial West Texas U t i l i t i e s *Gte o f I l l i n o i s Ohio Power C i n c i n n a t i Gas & E l e c t . ^ P e o p l e s Gas L i g h t & Coke South C e n t r a l B e l l T e l . I n s t r u m e n t Systems Corp. Michigan General Alabama F i n a n c i a l Group, I n c . TYPE Notes Deb Bonds Bonds 1 s t mtge Com s t k 1 s t mtge Com s t k Com s t k ( r t s ) Bonds 1 s t mtge Pref stk Com s t k Bonds 1 s t mtge Bonds 1 s t mtge Bonds 1 s t mtge Bonds Sub Debs . Bonds Debs AMOUNT (IN MILLIONS OF D O L L A R S ) 75.0 75.0 35.0 15.0 25.0 92.0 35.0 26.0 15.0 30.0 30.0 20.0 15.4 25.0 23.0 17.0 40.0 60.0 30.0 200.0 25.0 25.0 30.0 APPROXIMATE DATE O F OFFERING July July July July July July July July July July July July July July July July July July July July INDEF INDEF INDEF 9 9 10 10 10 10 11 11 12 12 16 17 18 16 18 19 23 24 25 31 NOTES: * Included in table for first time. 1 Includes corporate and other security issues of $15 million and over. H.16 Table 6B FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 As of June 2 9 , 1973 TYPE ISSUER AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE O F OFFERING STATE & LOCAL New York San J o s e U n i f i e d S/D. , C a l i f . * D a r i e n , Conn *Dade C o . , F l a * N o r t h v i l l e , M i c h . , Pub S/d *Macomb Co. Comm. C o l l . D i s t , Warren, Mich Penn, S t a t e of Wash. Metro New York C i t y * P o r t of Houston, Tex. Lubbock, Tex *0klahoma _____ * M i n n e s o t a , S t a t e of ^ *Cen. Okla Trans & Pk Auth, Okla C i t y Okla. *Texas ^ M i s s i s s i p p i , S t a t e of *0klahoma, C i t y , Okla *Rockland C o . , N.Y. Iowa S t Bd of Regents Rosebud C o . , Mont., H a r r i s C o . , Tex. Los Angeles DWAP C h a r l o t t e , N.C. G • 0. G.O. Rev. G.O. G.O. 86.0 13.0 10.0 66.0 10.0 G.O. G.O. Rev G.O. Rev.^ G.O. G.O. G.O. 12.3 150.0 150.0 325.0 15.0 12.3 14.0 77.8 G.O. G.O. G.O. G.O. Rev. Rev. P o l l cont rev G.O. Rev G.O. 15.7 10.0 50.0 17.9 16.2 10.0 20.0 16.0 18.0 22.0 . July July July July July 2 3 10 10 10 July July July July July July July July 10 10 11 11 12 12 16 17 July July July July July July July July Aug. Aug. 18 19 19 23 23 26 15 21 NOTES: 1 Includes state and local government issues of $10 million and over. 2 Includes foreign government and International Bank .for Reconstruction and Development issues and issues of Federally sponsored agencies. H.16 Table 7 STOCK PRICES AND VOLUME TRADING VOLUME STOCK P R I C E S N Y S E INDEX Low 1972 - High Low 1973 - High Low 1973 fgMay June DJ I N D U S T R I A L S NASDAQ 22.1(2/12) 11.0(9/17) 6.7(2/5) 2.7(8/13) 65.14(12/11) 1036.27(12/11) 28.53(4/14) 133.28(4/21) 56.23(1/3) 889.30(1/3) 25.61(1/3) 114.88(1/7) 21.8(11/10) 11.2(9/8) 7.4(3/10) 2.6(9/8) 11.7(3/10) 6.5(9/10) 65.48(1/11) 53.79(6/25) 26.70(1/8) 136.18(1/12) 22.20(6/25) 99.43(6/25) 20.4(1/12) 11.4(6/1) 4.8(1/12) 2.2(6/29) 10.4(1/12) 4.5(6/29) 57.76(4/18) 48.73(1/4) 1971 - High ^ 950.82(4/28)" 26.68(4/28) 112.66(12/31) 797.97(11/23) 22.72(1/4) 100.52(2/26) 1051.70(1/11) 869.13(6/25) 8.9(12/30) 5.1(11/26 4 11 18 25 58.77 57.43 54.96 56.96 953.87 927.98 895.17 930.84 23.67 23.53 22.81 22.76 110.89 109.10 \102.89 . 105.17 14.5 13.7 15.1 18.0 3.0 2.5 3.0 4.0 6.2 5.5 6.4 1 54.86 56.29 55.36 54.56 54.84 893.96 920.00 888.55 879.97 891.71 22.49 22.57 22.56 22.34 22.32 102.30 103.72 102.26 100.99 100.97 11.4 13". 3 12.9 13.0 12.3 2.4 2.5 2.3 2.4 2.2 5. Or 5.2 5. Or 4.7r 4.5 8 15 22 29 6.8 NO TES: 1 Figures other than highs and lows are Fridays only. Highs and lows are for the year and are not necessarily for Fridays. 2 Volume figures are weekly averages of daily figures (millions of shares). Trading is normally conducted for 5% hours per day and 5 days per week, or 27% hours per week. In recent years, however abbreviated trading to the extent, and over the time periods, shown below: From Through Hours/Day Days/Week January 3, 1969 July 7, 1969 January 2, 1970 July 3, 1969 December 31, 1969 May 1, 1970 4 4% 5 5 5 5 3 12/31/65 = 50 4 Average dollar value of shares listed. . Hours/Week 20 22% 25 , H.16 Table 8 SECURITY CREDIT 4 ' R E G U L A T E D MARGIN CREDIT E X T E N D E D BY E N D O F PERIOD BROKERS ON 1 MARGIN STOCK • BROKERS ON 2 CONVERTIBLE BONDS 3 BANKS UNREGULATED NONMARGIN STOCK CREDIT AT B A N K S OTHER SECURITY CREDIT AT B A N K S OUTSTANDING Dec. 7,200 7,510 7,660 7,780 7,800 7,800 7,890 7,900 241 244 248 246 248 250 249 254 994 955 979 1,032 1,008 943 902 865 1,141 1,644 1,772 1,800 1,871 1,875 1,871 1,896 1,296 1,274 1,285 1,298 1,255 1,351 1,296 1,528 1973 - J a n . Feb. Mar. Apr. May 7,700 7,500 7,200 7,040 6,540 249 248 244 232 224 865 867 879 872 n.a. 1,940 1,954 1,917 1,969 n.a. 1,484 1,508 1,566 1,482 n.a. 90 10 1 3 4 -2 2 2 -1 5 16 27 39 24 53 -24 -65 -41 -37 -8 -9 503 128 28 71 4 -4 25 -16 18 -22 11 13 -43 96 45 132 -200 -200 -300 -160 -500 -5 -1 -4 -12 -8 44 14 -37 52 -44 24 58 32 May June July Aug. Sept. Oct. Nov. C H A N G E IN O U T S T A N D I N G 1972 - Apr. j May June July Aug. Sept. Oct. 390 190 310 150 120 20 Nov. Dec. 1973 - J a n . Feb. $ Mar. Apr. May ' —— 2 12 -7 NOTES: 1 Margin account debt as reported by the New York Stock Exchange, excluding credit for subscription issues and convertible bonds. 2 New York Stock Exchange data. 3 June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which accounted for 60 per cent of security credit outstanding at banks on June 30. 4 Nonmargin stocks are those not listed on a national securities exchange and not included on the Board of Governors of the Federal Reserve System's list of OTC margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no 5 Includes loans to purchase or carry margin stock if these are unsecured or secured entirely by unrestricted collateral. H-16 5 Table 9 SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN MILLIONS O F D O L L A R S S A V I N G S & LOAN A S S O C I A T I O N S MUTUAL S A V I N G S BANKS REGULAR D E P O S I T S DATE NET FLOW 1 ANNUAL 3 GROWTH RATE NET NEW MONEY 2 SHARE CAPITAL NET FLOW ANNUAL 3 GROWTH RATE NET NEW MONEY TOTAL 2 DEPOSITS 2 NET NEW MONEY ANNUAL 3 GROWTH RATE NET FLOW NOT SEASONALLY A D J U S T E D 1970 1971 1972 4,517 9,621 9,788 6.8 13.5 12.0 936 5,678 5,397 10,965 28,230 32,902 8.1 19.3 19.5 5,285 20,653 23,884 15,482 37,851 42,690 1972 - Feb. Mar. Apr. 931 1,507 464 —— 809 773 280 2,818 4,287 1,744 —— 2,700 2,532 1,668 3,749 5,794 2,208 1973 - Feb. Mar. Apr. 2 / 551 1.102 96 —— 402 280 -88 1,904 3,702 866 —— 1,795 1,628 756 2,455 4,804 962 — — — -- -— -— 7.7 17.5 17.0 ' 6,221 26,331 29,281 •» -» 3,509 3,305 1,948 — 2,197 1,908 . 668 — — SEASONALLY ADJUSTED 1972 - Nov. Dec. 761 902 10.2 12.0 1973 - J a n . Feb. 808 465 579 387 10. 6 6.1 . 7.5 5.0 Mar. Apr.jV — -— — 2,246 . 2,164 13.3 12.7 4,026 1,834 2,430 1,294 23.3 10.4 13.7 7.2 — — *• 3,007 3,066 12.3 n 12.5 \ 4,834 2,299 3,009 1,681 19.4 9.1 11.8 6. 6 ' - - NOTES: 1 Regular deposits at mutual savings banks exclude items such as Christmas club and certain escrow accounts, which represent a very small part of total deposits. 2 New deposits net of both withdrawals and interest. Data for S&L's are for insured associations only, which represent 96 per cent of industry total resources. 3 Annual growth rate for monthly data is the annualized monthly percentage increase in deposits. Source: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. H.16 " Table 10 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS OF DOLLARS, SEASONALLY A D J U S T E D NET CHANGE OUTSTANDING COMMITMENTS PERIOD ALL SAVINGS MUTUAL & LOAN SAVINGS BK55 ASSOCIATIONS (N Y. STATE) TOTAL ( B i l l i o n s of Dollars 1971 - D e c . 16 .6 1972 - J a n . Feb. March April May June July Aug. Sept. Oct. Nov. Dec. 18.0 19.1 19.7 20.1 20.6 20.7 21.0 2118 22.9 23.6 24.3 24.9 1973 - J a n . Feb. Mar. Apr. 25.9 2615 26.0 25.2 , - . TOTAL MUTUAL ALL SAVINGS & LOAN SAVINGS BKS ASSOCIATIONS (N Y. STATE) Seasonally Adjusted)r/ 13.1 3.6 .09 - .06 .15 14.1 15.0 15.4 15.7 16.2 16.3 16.5 17.3 18.1 18.7 19.4 20.0 3.9 4.1 4.3 4.4 4.4 4.4 4.5 4.5 4.8 4.9 4.9 4.9 .24 1.19 .49 .42 .60 .53 .36 .83 .99 .73 .73 .68 .11 .91 .38 .29 .55 .60 .26 .76 .77 .63 .69 .65 .13 .28 .11 .13 .05 -.07 .10 .07 .22 .10 .04 .03 20.8 21.5 21.2 20.6 5.1 5.0 4.8 4.6 .98 .59 -.59 -.68 .81 .69 -.38. -.51 . , .17 -.10 -.21 -.17 NOTES: Based on data f r o m Federal H o m e Loan Bank Board and Savings Banks Association of New York State. Both series include a minor a m o u n t of nonresidential c o m m i t m e n t s . S&L c o m m i t m e n t s also include loans in process. Net changes are derived directly f r o m u n r o u n d e d end-of-period outstanding levels as reported and after seasonal a d j u s t m e n t by Federal Reserve. Subtotals may n o t add to totals because of rounding. I H.16 T a b l e 11 NET NEW MONEY BORROWINGS BY MAJOR HOUSING ^AGENCIES IN MILLIONS OF DOLLARS TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES PERIOD 1971 - Mar. Apr. May June July Aug. Sept. Oct. INTERMEDIATE AND LONG-TERM I S S U E S TOTAL -439 -696 -388 -483 +604 +335 +453 +942 -96 +563 -100 -451 -453 -136 +411 +200 +526 +849 +300 +500 Dec. -259 +169 +176 +138 +129 +599 -367 +120 +624 -112 +628 +273 +399 +248 -1 +299 +813 -1 -1 +100 -47 +311 +475 1973 - J a n . Feb. Mar. Apr. +131 +452 +582 +1,267 +122 +312 +378 +1,303 Nov. Dec. 1972 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. FHLB j-450 -651 -452 .-337 -39 -87 -28 +200 -250 on data from the —— Treasury Survey —— —— —— —— +300 — —— —— » — FNMA +350 +200 -1 +201 +450 -13 +554 +649 +550 +500 — ' -339 -245 +65 -347 +193 _ +135 -73 +93 -396 +63 +500 —— - — -- —— +103 +337 -1 -25 76 +100 -150 -1 +400 -259 -230 -72 +139 -170 -214 -366 +121 +524 -65 +317 -202 +6 +10 +379 +107 +9 +140 +204 -36 —— +251 -1 +1,195 of SHORT-TERM DISCOUNT NOTES -403 -2 -1 -200 " -1 -1 -1 NOTES: Based FHLMC Ownership. +200 — +602 +250 -- -—- —— +116 +51 - - +1 -1 +814 — T a b l e 12 16 NET CHANGE IN MORTGAGE HOLDINGS IN M I L L I O N S O F D O L L A R S TOTAL INCLUDING FNMA-GNM; PERIOD FINANCIAL INSTITUTIONS TOTAL COMMERCIAL BANKS MSB's S & Ls INSURANCE FNMA-GNMA COMPANIES Not S e a s o n a l l y A d i u s t e d 1969 1970 1971 1972 24,074 21,736 41,647 57,107 19,699 16,827 39,259 55,081 5,404 2,462 9,940 15,999 2,682 1,845 3,938 5,377 9,561 10,172 24,160 31,982 2,052 2,348 1,221 1,723 4,375 4,909 2,388 2,026 1972 - J u l y Aug Sept Oct Nov Dec 4,872 5,931 5,286 4,779 5,114 5,94^ 4,717 5,563 4,918 4,684 4,984 5,811 1,500 1,600 1,400 1,400 1,500 1,000 438 553 502 472 517 598 2,758 3,313 2,926 2,673 2,712 3,101 79 97 90 139 255 1,112 164 368 137 95 130 132 1973 - Jan Feb Mar Apr May 3,760 3,754 5,217 3,565 3,688 5,148 900 900 1„ 200 1,200 458 331 568 506 2,045 2,428 3,303 3,291 162 29 77 195 66 69 July Aug Seasonally Adiusted 1972 - J u l y Aug ^ Sept Oct Nov Dec 1973 - Jan Feb Mar Apr - May June July Aug 8 4,849 5,471 4,748 4,714 5,282 5,697 4,593 5,179 4,714 4,738 5,212 5,601 , 1,451 1,477 1,155 1,393 1,524 1,164 472 515 537 484 513 525. 2,678 , 3,108 2,911 2,726 2,876 3,130 4,501 4,381 5,472 n. a. 4,273 4,269 5,348 n. a. 1,112 1,079 1,262 1,162 475 388 601 554 2,467 2,730 3,371 3,206 101 79 111 135 299 782 219 72 114 n• 3• - 147 292 34 - 24 70 96 228 112 124 n. a. NOTES: 1 s - 2 Monthly data for commercial banks based on Federal Reserve estimates b en ch m ar k ed t o Call Report data on real estate loans outstanding as available. Other data derived f r o m mortgage debt outstanding as reported separately by National Assn. of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance a n d , through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and t h e G o v e r n m e n t National Mortgage Association. Data for mutual savings banks and for Life Insurance companies may differ somewhat f r o m those derived f r o m regular quarterly series because of minor conceptual differences for which a d j u s t m e n t s are not made in t h e m o n t h l y series. Altogether, these groups a c c o u n t e d for 8 9 p e r cent of the net increase estimated for all holders in 1 9 7 2 . Beginning J a n u a r y 1972 data reflect activity in limited a m o u n t of conventional mortgages. H.16 • Table 13 NET INCREASE IN MORTGAGE DEBT OUTSTANDING 1 IN BILLIONS OF DOLLARS, S E A S O N A L L Y ADJUSTED ANNUAL R A T E S RESIDENTIAL QUARTER TOTAL TOTAL 1- t o 4 FAMILY MULTIFAMILY COMMERCIAL MULTIFAMILY & COMMERCIAL FARM 1968 - I II III IV 28.1 26.4 25.5 29.6 19.4 18.2 17.2 20.4 16.3 15 . 0 13.6 16.5 3.1 3.2 3.5 3.9 6.4/ 6.0 6.5 7.4 9.5 9.2 10.1 11.3 2.3 2.2 1.8 1.9 1969 - I II III IV 32.0 29.1 25.8 25.2 23.8 21.5 18.7 18.5 19.4 16.8 14.0 13.1 4.4 4.6 4.7 5.4 6.0 5.4 5.3 5.3 10.4 10.1 10.0 10.7 2.2 2.2 1.7 1.4 1970 - I II III IV 20.7 22.9 28.5 31.8 14.4 16.8 21.3 22.8 9.4 11.6 15.0 16.2 5.0 5.2 6.3 6 .6 4.8 4.6 5.1 6.8 9.8 9.8 11.5 13 .4 1.5 1.5 2.1 2.2 1971 - I II III IV 37.5 47.8 52.2 54.2 27.3 36.0 38.9 40.7 19.2 26.5 30.1 31.9 8.0 9.4 8.8 8.9 8.1 9.5 11.1 11.0 16.1 18.9 19.8 . 19.9 2.2 2.3 2.3 2.5 1972 - I II III IV 62.4 64.9 65.2 68.4 45.4 47.1 47.3 50.6 35.9 37.5 38.5 40.2 9.5 9.6 8.8 10.4 15.2 \ 15.4 23.9 24.8 24.0 25.8 2.6 2.6 2.6 2.5 1973 - I - / 80.9 59.7 48.5 11.2 18.1 29.2 3.1 " . 14x5 . 15. Z/ - 1 NOTES: 1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and 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 interpolations and extrapolations, where required, estimated mainly by Federal Reserve. 2 May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. 3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family and multifamily mortgage debt combined. H .16 Table 14 PRIVATE HOUSING PERMITS, STARTS, COMPLETIONS, AND MOBILE HOME SHIPMENTS IN T H O U S A N D S OF UNITS, SEASONALLY A D J U S T E D ANNUAL RATES PERMITS PERIOD TOTAL 1—FAMILY COMPLETIONS STARTS 2 - O R MORE FAMILY TOTAL 1972 - J a n u a r y February March April May June July August September October November December 2,204 2,056 2,007 1,991 1,95*5 2,121 2,108 2,237 2,265 2,216 2,139 2,377 1,098 959 954 963 923 989 1,013 1,031 975 1,086 961 947 1,106 1,097 1,053 1,028 1,032 1,132 1,095 1,206 1,290 1,130 1,178 1,430 2,439 2,540 2,313 2,204 2,318 2,315 2,244 2,424 2,426 2,446 2,395 2,369 1973 - J a n u a r y February March Aprilr/ May 2,218 2,191 2,071 1,834 1,867 1,057 . 1,068 989 923 898 1,161 1,123 1,082 911 969 2,497 2,456 2,260 2,104 2,430 1-FAMILY . 2 - O R MORE FAMILY TOTAL 1-FAMILY MOBILE 2 - O R MORE HOME FAMILY SHIPMENTS 1,395 ' 1,281 1,310 1,215 1,308 1,283 1,319 1,373- , 1,382 1,315 1,324 1,207 1,044 1,260 1,003 989 1,011 1,032 925 1,051 1,045 1,131 1,071 1,162 1,968 2,088 1,983 1,954 1,891 1,904 1,891 1,973 1,972 1,945 1,980 2,147 1,154 1,141 1,137 1,154 1,121 1,125 1,095 1,210 1,118 1,156 1,153 1,168 814 947 846 799 770 779 799 763 853 789 828 980 554 552 595 634 572 583 556 534 494 548 666 606 1,450 1,372 1,245 1,197 1,268. 1,047 1,084 1,015 907 1,162 2,147 2,033 2,159 2,007 1,324 1,259 1,308 1,120 823 774 852 886 648 642 737 680 NOTES: Private building permits (for 13,000 areas with permit systems, excluding farm), starts and completions are Census Bureau data, with completions converted to a seasonally adjusted annual rate by the Federal Reserve. A dwelling unit is started when excavation begins. In the case of apartment buildings, all units are considered started at that time; however, all such units are considered completed when half of the units in the structure are ready for use. Private mobile home shipments are Mobile Home Manufacturers Assoc. data converted to seasonally adjusted annual rate by Census Bureau. H.16 T a b l e 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES CONVENTIONAL L OANS PRIMARY MARKET 1 PERIOD RATE (IN PER CENT) SPREAD (BASIS POINTS) SPREAD BETWEEN R ETU R N S ON NEW A a a CONVENTIONAL UTILITY AND HUD(FHA) BOND DISCOUNT NEW HOME YIELD (PERCENTAGE MORTGAGES (IN PER CENT) POINTS) (BASIS POINTS) HUD(FHA) INSURED LOA N S S E C O N D A R Y MARKET NEW HOMES EXISTING HOMES NEW HOMES 1 1 RATE (IN PER CENT) SPREAD (BASIS POINTS) YIELD (IN PER CENT) SPREAD (BASIS POINTS) 1971 - High Low 7.95 7.55 .52 .01 8.05 7.65 .62 .06 7.97 7.32 .31 •07 7.8 2.7 .28 .01 8.04 7.28 1972 - High Low 7.70 7.55 •61 .15 7.75 7 .60 •66 •20 7.57 7.45 .48 .05 4.7 3.7 .14 .06 7.45 7.09 1972 - J a n Feb Mar 7.60 7.60 7.55 7.60•7.60 7.60 7.65 7.65 7.70 7.70 7.70 7.70 .39 .26 .31 .15 .22 .28 .27 .28 .30 .32 .61 .55 7.70 7 .65 7.60 7.65 7.70 7.70 7.70 7.70 7.75 7.75 7.75 7.75 .49 .31 .36 .20 .32 .38 .32 .33 .35 .37 .66 .60 7 .49 7.46 7.45 7.50 7.53 7.54 7.54 7.55 7.56 7.57 7.57 7.56 .28 .12 .21 .05 .15 .22 .16 .18 .16 .19. .48 .41 4.0 3.8 3.7 4.1 4.3 4.4 4.4 4.5 4.6 4.7 4.7 4.6 .11 .14 • .10 . .10 .07 .06 .11 .10 .14 .13 .13 .14 7.70 7.75 7.80 7.90 7.95 .32 .35 .31 .44 .44 7.75 7.80 7.85 7.90 8.00 .37 .40 .36 .44 .49 7.55 7 .56 7.63 7.73 7.79 .17 .16 .14 .27 .28 4.5 4.6 5.2 5.9 6.4 .15 .19 .17 .17 .16 Apr May June July Aug Sept Oct Nov Dec 1973 - J a n Feb Mar Apr • ! '."-May . i 7.21 7.34 7.24 7.45 7.38 7.32 7.38 7.37 7.40 7.38 7.09 7.15 7.38 7 .40. 7.49 7.46 7.51 £ / NOTES: 1 Gross yield spread is average mortgage return before deducting servicing costs, minus average yield on new issues of high-grade utility bonds with 5-year call protection. Rates on conventional first mortgages (excluding additional fees and charges) are based on unweighted HUD (FHA) field office opinions on prevailing contract interest rates in the market areas of the insuring offices, rounded to the nearest 5 basis points. For secondary market data, weighted HUD office opinions on the average bid price for HUD (FHA) loans with minimum downpayment, prepaid in 15 years, for immediate delivery, are used; - ^ H.16 t a b l e 16 FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS CONVENTIONAL GOVERNMENT-UNDERWRITTEN AMOUNT (IN M I L L I O N S O F D O L L A R S ) AUCTION OFFERED Dec. Feb. 2 8 22 5 6 19 21 | AVERAGE YIELD ACCEPTED mm 36,4 30.9 7.67 82.2 108.7 4 2 .4 66 .3 7 .68 7 .69 -• - - — - - - - -- 39 .3 25 .5 7.84 74.2 107.0 61 .3 92 . 1 7 .69 7 .70 -• - - — 128.7 65 . 4 7 .71 -• -- 110.3 71 .6 7 .73 -• -• — -- -• -- 66 .0 49 .6 7.92 60, .3 44 .3 7.95 - — 1 -- 100 .9 62 .9 - 7..75 •* 7.89 -- 170.8 107, .7 ; -- -- -- 297 .3 168 .7 7..81 -- -- -- -- -- 86. .8 56 .4 8.02 234.6 145, .9 7. .86 - - -- •- 111. .9 81, .6 8.11 216.6 190. .7 7. ,89 -- -- -- •- 261.2 185. .9 7. 92 111. .0 128. ,9 88, .4 88. .2 8.17 8.23 14 29 258.3 212.4 187. ,7 140. 0 7 . 96 8. 00 117. 6 113. 3 8 4 . .4 74. 0 8.31 8.39 June 11 25 184.5 199.3 142. 2 118. 7 8. 04 8. 09 110. 1 95. 0 74. 1 69. 4 8.44 8.51 Mar. Apr. & , AMOUNT (IN M I L L I O N S O F D O L L A R S ) OFFERED ACCEPTED k 11 26 1973 - J a n . 1 AVERAGE May 5 6 19 21 2 3 16 17 30 J : j ' ' NOTES: Average secondary m a r k e t yields are gross b e f o r e d e d u c t i o n of the fee of 3 8 basis points paid for mortgage servicing. They reflect the average accepted bid yield for h o m e mortgages assuming a p r e p a y m e n t period of 12 years f o r 30-year loans, w i t h o u t special a d j u s t m e n t for Federal National Mortgage ^Association (FNMA) c o m m i t m e n t fees and FNMA stock purchase and holding requirements on 4 - m o n t h c o m m i t m e n t s . Mortgage a m o u n t s o f f e r e d by bidders relate to total eligible bids received. H.16
@FedFRASER