Full text of H.16 Capital Market Developments : July 6, 1971
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CONFIDENTIAL / L.5.8 Confidential (F.R.) V j DECONTROLLED AFTER SIX MONTHS APITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal R e s e r v e System, Washington, D. C. u i v 6, J J 7 1 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 Bond M a r k e t s 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 Mortgage Market SYMBOLS: e Estimate p Preliminary r n.a. Revised Not a v a i l a b l e " TABLE 1: Yields, Volume and Reception YIELDS MOODY'S SEASONED 1 NEW ISSUE Aaa WEEK ENDING: 1971 - June CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 4 11 18 25 7.79 7.93 8.05 7.84 7.70 7.66 7.63 7.62 220 355 839 634 92 79 98 76 2 9 7.89 7.63 310 15 Oe 88 n.a. July YIELDS MOODY'S BOND BUYER SEASONED 20 SEASONED Aaa BOND INDEX WEEK ENDING: MUNICIPAL BOND MARKET VOLUME 2 GROSS OFFERINGS PER CENT SOLD BY END OF WEEK 1971 - June 4 11 18 25 5.50 5.60 5.70 5.80 5.70 5.87 6.00 6.23 320 429 486 405 80 70 73 71 July 2 9 5.90 6.19 331 760e 88 n.a. BONDS SCHEDULED WITHIN 28 DAYS 806 851 918 1,351 - 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 CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK RATING AND ORIGINAL YIELD COUPON ISSUER AMOUNT (MIL. $) 6/30 6/30 6/30 6/29 6/24 6/21 DATE OFFERED | RELEXSED 8.,75 7.,88 8,.20 8,.40 8,.38 7,.75 Comm'l Credit Comm'l Credit Raytheon ACF Ind. Wise. Nat. Gas Michigan Bell Tel. 50.0 50.0 50.0 20.0 10.0 150.0 8.,75 7.,88 8..30 8,.40 8..25 7..80 -- A .$ yrs. i0 yrs. 10 yrs. -- A Aaa 5 yrs. 5 yrs. ESTIMATED PROPORTION SOLD 95% 607, 80% 85% 85% 50% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED COUPON 'ISSUER . YIELD AMOUNT NONE INVENTORIES 1 MUNICIPALS BLUE LIST | IN SYNDICATE ' DATE 1971 - June July 4 11 18 25 2 563 614 656 603r 503 ' CORPORATES IN SYNDICATE 156 180 226 203 18 73 20 149 91 113 N.C. - No call protection. 1 All figures in millions of dollars. Eklue List is daily average for week ended Friday,except for latest week which is daily average of three days ended Wednesday. All other figures are as of Friday. TABLE 3: High Grade Bond Yields DATE 1969 - High Low 1970 - High Low 1971 - H i g h Low NEW CORPORATE Aaa1 8.85 6.90 9.30 7.68 8.23 6.76 (12/5) (2/21) (6/19) (12/18) (5/21) (1/29) MOODY'S SEASONED CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 7.84 (12/26) 6.55 (1/12) 8.60(7/3) 7.48 (12/31) 7.69 (6/4) 7.06 (2/12) 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 1971 - June 11 18 25 7.93 8.05 7.84 7.66 7.63 7.62 6.32 6.51 6.44 5.87 6.00 6.23 July 2 7.89 7.63 6.44 6.19 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 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) TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS - CORPORATE PERIOD 1971 STATE AND LOCAL 2 1 1970 1969 : i97i 1970 1969 January February March 3,115 3,000 6,075 2,636 1,802 3,539 2,075 2,045 2,098 1 | ! 2,702 1,833 2,107 1,340 1,214 1,555 1,262 987 538 April May June 4,007 3,600e 3,170 3,909 3,389 2,748 2,076 2,530 j | 1,888 2,106e 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 ^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 7,837 12,302 18,164 n8;8889i9 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 12,190 I | 6,642 6,435 Excluding finance companies 3 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 6,170 7,037 Year 1 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. . TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH 1970 - II III IV 1971 - I 1 TOTAL 10,468 8,560 11,938 12,190 GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND MEMO: BONDS ISSUES INCLUDED PUBLICLY PRIVATELY PFD. MFG. STOCK PLACED FOREIGN | CONVERTIBLE OFFERED GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS 1 6,994 5,987 7,827 8,369 1 ,282 914 1 ,421 1 ,516 2,190 1,659 2,690 2,306 135 83 226 84 710 287 737 824 2,445 2,314 3,169 2,812 2,714 3,406 2,,162 868 1,,346 3,048 2,663 4,020 3,794 3,197 1 ,606 3,594 1970 - May June July Aug. Sept. Oct. Nov. Dec. 3,909 3,389 . 2,768 2,274 3,518 3,777 4,181 3,979 3,041 1,931 1,831 1,731 2,425 2,390 3,001 2,436 399 436 320 205 389 304 283 834 468 1,021 617 338 704 1,083 898 709 20 26 68 11 4 56 11 159 230 82 107 59 121 388 184 165 817 939 638 682 994 1,006 1,107 1,056 600 1,103 843 630 1,241 1,101 1,350 955 1 ,747 353 144 279 445 371 693 282 744 994 1,143 682 838 1,300 1,033 1,687 1971 - Jan. Feb. Mar. 3,115 3,000 6,075 2,033 2,201 4,135 594 275 647 489 524 1,293 43 3 38 99 168 557 716 661 2,417 676 1,069 1,452 391 683 532 1,332 587 1,675 Apr. e/May 4,007 3,600 2,118 2,200 473 500 1,415 900 | 384 275 1,115 1,050 1,265 n.a. 269 385 1,358 1,675 f / 113 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 . 490 TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. T r e a s u r y ) 1 ISSUER Economics Lab Corporates Kansas City P & L Sperry Rand Williams Bros.^ Philadelphia Elec. Central Illinois Fla. Pwr. Corp. Cutter Labs, Inc. Atlanta Gas Light Co. Northern Nat. Gas Co. Western Elec. Dennison Manufacturing Co. Farah Manufacturing Co., Inc. Gilbert Flexi-Van Corp. Georgia Pwr. Ohio Edison Marco Phelps Dodge Corp Phelps Dodge Corp. United Jersey Banks Equitable Gas Co. ARA Services, Inc. Itel Corp. Detroit Edison Co. Harvey Aluminum Inc. Occidental Petroleum Corp. Walt Disney Productions Pacific Pwr. & Lt. Co. Castle & Cooke, Inc. Washington Post Co. Marley Co. Detroit Edison Co. TYPE' AMOUNT (MILLIONS OF DOLLARS) Conv. Sub. Debs. 20.0 1st. Mtg. 27.0 S.F. deb 100.0 Conv. Sub. debs. 60.0 Com. Stk. 55.0 Com. Stk. 16.6Com. Stk. 43.5 Com. Stk. 17.2 15.0 1st. Mtg. 60.0 S.F. debs. 100.0 Debs. 20.0 S.F. debs. 19.9 Com. Stk. i 16.5 Com. Stk. 1st. Mtg. 100.0 1st. Mtg. 60.0 Conv. debs. 100.0 S.F. Debs. 100.0 Notes(7 yrs) 50.0 Debs. 20.0 Debs. 17.5 Conv. Debs. 40.0 Debs. 30.0 1st. Mtg. 100.0 S.F. debs. 50.0 Conv. debs. 125.0 Conv.'debs. 100.0 Pref. Stk. 30.0 Com . Stk. 18.9 Com. Stk. 15.1 Com. Stk. 15.1 Com. Stk. 78.5 MATURITY 1991 June 1 thru COUPON RATE OR NET INTER EST COST 2 » lp71 OFFERING YIELD MOODY'S RATINC.\ 5.13 7.75 8.20 5.13 7.73 1996 8.20 Baa Aa ' Aaa 1991 5.65 5.65 B 7.50 7.45 8.05 7.58 8.25 A A Aaa A 8.10 Aa A 2001 1977 1991 1996 1996 2001 2001 1996 1996 1978 1979 1996 1996 1996 2001 1996 1996 8.00 7.50 8.25 8.13 8.38 5.00 8.10 7.38 7.95 9.00 4.63 8.00 8.13 9.38 7.50 4.75 8.20 5.00 7.38 7.38 7.95 9.00 4.63 Baa 8.00 8.17 9.38 7.50 4.75 Aa Baa Ba Baa TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. T r e a s u r y ) 1 June 1 . rhi-„ Julv 2. ISSUER TYPE2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST OFFERING YIELD MOODY'S RATING Corporates Carolina Power & Light Co. Merrill Lynch, Pierce * Fenner, Smith Inc. USE Investor Baltimore Gas Sc Elec. *South Carolina Elc. & Gas Co. Industrial Nucleonics Michigan Bell Telephone Co. First Nat'1 Bank of Oregon Quaker Oats Co. West Penn. Pwr. Diamond Shamrock Corp. Chase Manhattan Corp. Joseph E. Seagrams & Sons Union Fidelity Corp. First Mtge. Investors Raytheon Co. ITT World Communications, Inc. ACF Industries Inc. ACF Industries Inc. Commercial Credit Co. Commercial Credit Co. Lomas & Nettleton Fin. Corp. International Multifoods Corp. I 33.4 -- Com. Stk 56.0 Benf. Int. 50.0 Com. Stk 71.3 Com. Stk 18.8 Conv. debs. 15.0 Bds. 150.0 Cap. Notes 25.0 S.F. debs. 50.0 1st. Mtg 40.0 S.F. debs. 60.0 Conv. debs. 200;0 Gtd. Notes 50.0 22.0 Com. Stk Sr. debs 25.0 S.F. debs. 50;0 Debs. 35.0 Equip. Ctfs. 20.0 Trst. Equip. Ctfs. Trst. 5.0 -- Com. Stk Notes Sr. Notes Debs. S.F. debs. 50.0 100.0 50.0 25.0 " —— —— —— —— —— -- -- -- -— -" —— —— -- —- 1991 2011 1978 2001 2001 1996 1996 1978 5.50 7.75 7.88 7.70 8.13 8.20 6.50 7.50 5.50 7.80 7.96 7.70 8.00 8.25 6.50 7.59 1977 1996 1996 8.20 8.20 8.50 8.25 8.30 8.50 1986 8.40 8.40 7.88 8.73 5.50 9.13 6.907.70 7.88 8.75 5.50 9.12 ' -- 1972-75 1978 • 1991 1991 1996 -- -- Aaa . — Aa Aa A -—— A A — — — — Baa \ T A B L E 6: Large Long-term Public Security Issues ftir New Capital (continued) (Other than U.S. Treasury)1 10 June 1. thru July 2 , 1971 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST <>FFKR II.C YIELD MOODY'S RATING State and Local Northeast Monmouth Co. Reg. Serv. Auth. N.J. New Jersey University of Puerto Rico University of Puerto Rico Mukilteo S/D #6, Wash. York, Pa. S/D Auth. Illinois ¥rey Sch. Dipt., Mich. Ross Co., Ohio New York State University of Kentucky Memphis, Tenn. York Co. Hospital Auth., Pa. York Co. Hospital Auth., Pa. New Madrid, Mo. New Madrid, Mo. Alaska Ohio, State Bergen Co., N.J. Coastal Ind. Wtr. Auth. Tex. Long Beach, N.Y. City S/D Fla. Turnpike Dade Co. Expressway West Virginia I Binghamton, N.Y. Ga. Highway Auth. Burlington, Mass. California, State of Rev. 12.0 G.O. 75.0 Rev. 26.0 Rev. 6.0 G.O. 10.0 Rev. 10.3 100.0 G.O. G.O. 24.0 Rev. 13.6 Rev. 90.0 Rev. 63.8 G.O. & Rev. 12.0 3.2 Rev. Rev. 7.5 Rev. 49.0 Rev. 14.8 23.8 G.O. 1975-2010 1972-96 2011 1972-91 1973-91 1972-95 1972-96 itfcir 1972-91 1972-2001 1972-91 1975-86 1998 2003 1975-87 1972-96 Rev. G.O. Rev. G.O. Rev. G.O. G.O. G.O. lev. -Rent G.O. 40.0 10.9 25.0 10.2 115.0 37.0 45.0 12.0 20.0 14.9 1976-2011 1972-91 2007 ^ 1971-97 2010 1973-2000 1972-96 1972-95 1972-94 1972-1990 G.O. 100.0 1976-1991 6,92 4.92 6.92 3.00-5. 90 —- 4.00-6. 75 4.25-7. 10 3.00-6. 00 3.00-5. 90 6.86 • • -— 4.93 6.23 7.74 5.08 6.56 4.94 .40 3.40-6,.30 3.50-6,.80 3.60-5,.30 4.75-6,.50 7.00 7.20 7.00 7.36 4.75-6,,90 6.04 3.60-6,.20 6.44 5.35 6.44 6.50 7.08 5.73 5.45. 5.70 5.54 -- 4.70-6. 60 3.40-5. 90 6.38 4.00-6. 90 7.00 3.50-6. 25 3.40-6. 25 3.60-6.,10 3.30-6. 00 4.00-6.,30 5.37 4.30-6,.30 A Aaa A A —— Aa Aaa Baa Baa Aa A Aa —— Baa Baa Baa-1 Aa Baa A-l A-l Aaa A Aa tl TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. T r e a s u r y ) 1 ISSUER TYPE2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST i State and Local (cont'd)1 Eugene, Oregon Eugene, Oregon Allegheny Co., Pa. Louisiana, State of Louisiana, State of Co. of Missoula, Montana Co. of Missoula, Montana Co. of Missoula Montana Wisconsin, State of Tucson, Ariz. Newark, N.J. Jackson Co., Mo. Philadelphia, Pa. Lakeland, Fla. Puerto Rico Wtr. Resources Kentucky, State of Delaware Rev. Rev. G • 0* G.O. G.O. Rev. Rev. Rev. G.O. Rev. G.O. G.O. G.O. Rev. Rev. G.O. G 0. 16.4 59.1 29.7 8.0 26.6 5.0 4.0 6.0 32.8 10.0 13.0 28.8 25.0 10.0 60.0 30.0 40.0 6.74 1975-90 2009 6.74 1972-2001 6.06 5.73 1972-91 5.73 1972-91 1973-841] 1990 7.30 1996 1972-91 5.24 5.88 1973-92 1978 1986 5.95 1973-87 7.64 1972-91 • 6.58 1973-2003 1972-95 .5.79 1972-91 5.46 MOODY'S RATING OFFERING YIELD ' 4.25-6.20 6.75 3.50-6.35 3.25-6.50 3.25-6.50 4.50-6.50 7.00 7.30 3.40-6.15 3.80-6.40 I6.50 5.50-9.00 5.50-7.70 3.75-6.75 00-7.00 3.40-6.15 3.50-6.40 A ' A A-l Aa A-l Baa Baa Baa Aa A Aa Baa-1 -- A Aa Aa J TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 12 June 1 thru July 2, 1971 ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST , MOODY'S OFFERRATING ING YIELD ' Other Falconbridge Nickel FHLB FHLB Sun Shipbuilding & Dry Dock Co. FICB Farmers Home F.N.M.A. F.N.M.A. __ 50.0 Bds. 200.0 Bds. 300.0 Gov't Ins. Merch . 35.6 Debs. / 211.7 Notes 250.2 Debs* 300.0 Debs. 550.0 1977 1974 8.85 6.95 6.35 8.85 6.95 6.35 1989 1974 1981 1976 1973 7.85 6.85 7.88 7.45 6.75 7.85 6.85 7.88 7.45 6.75 Aa Aaa . __ 1 ! * 1 2 3 Rights offering. Includes corporate and other security offerings of $15 million and over; State and local security offerings of $10 million and over. In case of State and local government securities, G.O. denotes general obligation; Hev.-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-quaranteed issues by Federal Agencies. TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital . (Other than U.S. Treasury) 1 As o f J u l y 2 , 1 9 7 1 ISSUER Corporate Ford Motor Co. American Century Mtg. Inv. Washington Gas Light Co. Wisconsin Pwr & Light Co. AT&T Continental Can Co. New York Telephone Co. Indiana Gas Company Chrysler Financial Corp. Commonwealth Edison Co. Alabama Pwr Co. Diamond State Telephone Co. *C.B.S. *Pepsico Inc. First Wisconsin Bkshares General Waterworks Corp. Guardian Mtge Investor Value Vend Credit Corp Cleveland Elec. Ill Monumental Corp Interlake Inc. Beneficial Corp Beneficial Corp Microdot Inc. Central Tel. & Utility Corp. General Tel. Co. of the S.E. Consumer Power Co. Carrier Corp Genstar Ltd. Bank of California Equimark Corp. Pub Serv Co of N. Mexico GAC Properties Credit Inc Indiana Bell Telephone Co Louisville Gas & Elec Co Dayton Pwr & Light Co Dayton Pwr & Light Co *Jersey Central Pwr & Light Co Public Service Elec & Gas Co Pacific Tel & Tel Co VEPCO VEPCO Southwestern Bell Telephone AMOUNT (MILLIONS OF DOLLARS) TYPE • Notes Debs 1st mtg 1st mtg Conv. Pref Notes Bonds 1st mtg Notes (5 yrs) 1st mtg Bonds Debs Debs Conv debs Debs 1st mtg Debs Debs Com Stk Notes Debs Bonds Bonds Notes 1st mtg Bonds 1st mtg Sr debs w/w Debs Conv debs Debs 1st mtg Debs Debs Debs 1st mtg Pref Stk 1st mtg Debs Com stk 1st mtg Com stk Debs . " APPROXIMATE DATE OF OFFERING - 100.0 25.0 15.0 30.0 1,375.0 60.0 150.0 15.0 100.0 100.0 85.0 15.0 50.0 50.0 50.0 25.0 30.0 25.0 50.0 20.0 60.0 25.0 50.0 20.0 20.0 40.0 120.0 30.0 25.0 20.0 15.0 20.0 50.0 100.0 100.0 45.0 20.0 25.0 85.0 300.0 50.0 80.0 200.0 July July July July July July July July July July July July July July July July July . July July July July July July July July July July July July July July July July August August August August August August August September September September 5 7 7 7 12 12 13 15 19 20 21 21 3 3 5 5 10 17 27 8 8 14 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 &g 0 f J u l y 2 , 1 9 7 1 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING State and Local Port of Oakland, Calif. *Boston, Mass. New York, N. Y. *New York, N.Y. •^Massachusetts Louisiana Stadium & Expo. Dist. Penna, State of Alachua Co., Fla. Oklahoma City Chicago Bldg. Commission *Sarita Ana Unified S/D, Calif. Houston ISD, Texas " N.Y. State Dorm. AuthorityFla., State of *Murray State University, K.Y. '•^Gloucester , Mass. ' Texas Muskegon Co., Mich. *Ohio '"-^Louisville and Jefferson Co. Metr^ Sewer Dist. Ky. Oakland Co., Mich. Cleveland City Sch. Dist. East Bay MUD, CAL Los Angeles DWAP 2 7 7 7 7 7 8 8 13 13 13 13 13 13 13 13 14 15 15 21 20.0 25.0 282.1 75.0 125.0 113.0 70.0 12.9 14.1 55.0 15.0 10.0 26.9 25.0 15.2 10.8 12.5 16.0 50.0 Rev. G.O. G.O. G.O. Rev. 30.0 13.3 16.0 12.0 39.0 July 22 July July Aug. 10 Aug. 11 Bds. 171.0 July 21 Other * 1 July July July July July July July July July July July July July July July July July July July Rev. G.O. G.O. Bds. G.O. Rev. Bds. Rev. G.O. Rev. Bds. G.O. Rev. Rev. G.O. Bds. G.O. Bds. Bds. . 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. Tables STOCK PRICES AND VOLUME STOCK PRICES 1 - TRADINGS VOLUME 2 ' DATE NYSE INDEX 3 ' D J . INDUSTRIALS AMEX 4 - AMEX NYSE 1969 - High 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 (7/29) 8.6 (3/29) (8/29) 8.0 3.6 (1/31) (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 (1/8) 18.5 (5/27) 7.8 (12/4) (8/14) 7.1 1.8 (1/2) (8/14) 1971 - High Low 57.76 49.73 (4/28) 950.82 (1/4) 830.57 (4/28)26.68 (1/4) 22.72 (4/28) 22.1 (1/4) 12.5 (2/12) (7/2) 6.7 2.9 (2/12) (7/2) " 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 2 55.18 890.19 25.52 June July - 1. Figures other than highs and lows a^e 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, 19 9 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 15.7 13.3 13.7r 13.3 4.3 3.3 3.4 3.2 12.5 2.9 ' 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 25 16 TABLE 9: Security Credit END OF PERIOD CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 | BANKS 2 | TOTAL CUSTOMERS 1 NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY BROKERS AND FREE CREDIT DEALERS 3 BALANCES Outstanding: .4,160 .1970 - M a y June 3,860 3,800 July Aug. .3,810 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 1970 - May June July Aug. Sept. Oct. Nov. Dec. -200 -300 - 60 10 110 90 20 - 40 - - -io 30 - 60 50 10 -300 - 60 20 140 30 50 30 1971 - Jan. Feb. Mar. Apr. May - 30 90 210 230 90 - 30 30 30 - 20 - - - 60 120 240 210 90 .1.971 - Jan. Feb. Mar. Apr. -May 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: 1 2 3 -240 - ~ - - - - - - - - " * - - - - - - - - 166 291 55 -138 -110 — — — — — — - - - - - - • - — — — — — — 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 customers' 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. TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) MUTUAL SAVINGS BANKS REGULAR DEPOSITS 3 NET ANNUAL NEW MONEY2 GROWTH NET 1 FLOW RATE DATE SHARE CAPITAL ANNUAL NET GROWTH FLOW RATE 1 NET NEW MONEY2 TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW NET NEW MONEY 2 Not Seasonally Adjusted • 1968 1969 1970 SAVINGS . St LOAN ASSOCIATIONS 4,203 2,549 4,466 1970 - Mar. Apr. May 1971 - Mar. Apr. r/ M a y jj/ 510 6 326 1,604 801 800 7.0 4.0 6.7 __ - — — —— 1,143 -763 936 7,432 4,200 11,173 -89 -136 224 1,655 207 753 6.0 3.2 8.2 11,635 6,749 15,639 —— 537 188 705 2,165 213 1,079 —— —— 2,627 2,092 2,069 5,707 3,012 2,962 .rnmm 2,536 14.5 -- 4,504 3,411 4,663 4,173 2,774 25.1 18.5 24.9 21.8 14.2 WW __ 955 v 651 680 4,103 2,211 2,162 1,740 14.5 3,619 2,472 3,376 2,996 1,998 29.8 19.8 26.7 23.1 15.1 . 6.3 3.4 7.7 2,738 -1,003 5,295 - - •WW 3,881 -1,766 6,231 448 52 929 3,582 2,743 2,749 Seasonally Adjusted 1970 - Dec. 1971 - Jan. Feb. Mar. Apr. r/ May £/ 1 2 3 796 14.5 -- 885 939 1,287 1,176 776 15.5 15.8 21.2 19.0 12.4 — - —— - - • - ** WW w— —— Annual growth rate for monthly data is the annualized monthly percentage increase in deposits. Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for insured associations only, which represent 96% of industry total resources. 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. SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. WW —— WW / TABLE 11: Mortgage Commitments at Selected Thrift Institutions DATE TOTAL OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS SAVINGS & BANKS LOAN (N.Y. STATE) ASSOCIATIONS TOTAL 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars, Seas onally Adjusted) 1/ 1970 - April May June July 7.8 8.0 8.2 8.6 Aug. Sept. Oct. Nov. Dec. 9.8 8.9 9.3 9.6 10.1 1971 - Jan. Feb. Mar. April 10.4 11.2 12.6 13.8 15.4 May 1 X -.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 J28 -.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 5.4 5.8 6.1 6.5 2.4 2.2 2.1 . 2.0 6.8 7.1 7.5 7.8 8.1 8.3 8.9 10.1 11.1 12.3 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 totals because of rounding. 19 TABLE 12: Net Change in Mortgage Holdings 1 DATE FINANCIAL INSTITUTIONS MUTUAL SAVINGS & SAVINGS COMMERCIAL LOAN BANKS BANKS ASSOC. LIFE INSURANCE COMPANIES 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 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 2,690 2,810 n • SL • 2,690 2,920 Ii» SL m 1,765 2,144 2,182 79 20 n.a. 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 FNMA-GNMA Not Seasonally Adlusted 1967 I 1968 1969 \ 1970 e/ : 1970 - Mar. Apr. May 1971 - Mar. Apr. May j 1970 - Apr. 1 May j June i July 1 Aug. 1 Sept. Oct. Nov. 1 , Dec. : 1971 - Jan. Feb. Mar. Apr. May 1 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 2,818 346 500 256 500 315 300 Seasonally Adiusted 157 76 155 65 189 81 142 165 175 268 245 328 138 295 224 176 250 312 175 383 217 345 380 588 283 453 325 240 507 435 468 508 408 364 320 229 100 -33 -87 -8 -79 7 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 84 per cent of the net increase estimated for all holders in 1970. Z) TABLE 13: Net Increases in Mortgage Debt Outstanding 1 Billions of dollars, SAAR QUARTER TOTAL RESIDENTIAL 3 1- to 4FAMILY MULTIFAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 8.3 7.0 2.6 2.1 5.5 4.1 8.2 6.0 2.2 1.8 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 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 1969 - 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 10.0 10.7 2.2 2.2 1.9 1.4 1970 - 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 1971 - Ip 32.9 22.6 15.6 7.0 8.3 15.3 2.0 1966 - II IV 18.6 15.1 10.9 9.1 1967 - I II III IV 15.9 20.7 26.6 27.3 1968 - I II III IV 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 serie% 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. TABL± 14: FNMA "Auction" Results WEEK ENDED COMMITMENTS IN $ MILLIONS ACCEPTED 1-YEARN 90TOTAL 6TOTAL MONTH & OVER OFFERED DAY IMPLICIT YIELD 2 (per cent) 90DAY 6M0NTH 1-YEAR & OVER 25.6 -- 7. 83 7. 96 12.7 -- 7. 67 7. 67 29.3 41.2 26.3 7.3 14.9 3.9 7. 43 7.,33 7.,32 7. 43 7.,45 7.,44 54.5 39.8 9.4 313.9 154.0 126. 6 5.4 33.4 7.,32 7.,43 7..45 7.,54 7.53 7.57 Jan. 25 44.6 35.5 Feb. 8 23.4 23.3 9.9 10.6 Mar. 1 15 29 186.0 193.5 122.5 51.8 74.0 66.9 15.2 17.9 36.7 Apr. 12 26 126.9 687.2 1 1 7.56 , 7 ' 5 5 7.54 May 10 24 1,168.0 785.7 236.8 145.8 151.6 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 77.1 191.2 133.7 262.2 191.8 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 Note: Under the FNMA auction system, approved sellers of Governmentunderwritten, mortgages bid for FNMA forward purchase commitments. Bids 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 and bidder fees 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 3 8 basis points fee paid b y investors to servicers. 1 22 TABLE 15: Private Housing Starts and Permits STARTS DATE SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE TOTAL UNADJUSTED TYP E OF FINANCING FHA VA OTHER BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE)2 May June July Aug. Sept. Oct. . Nov. Dec. 1,242 1,393 1,603 1,425 1,509 1,583 1,693 2,054 728 835 827 838 881 890 934 1.,240 514 558 776 587 627 693 759 814 125.0 135.2 140.8 128.7 130.9 140.9 126.9 121.4 37.1 40.7 43.3 34.1 34.3 40.4 33.7 63.2 5.2 5.1 5.3 5.6 5.3 5.8 5.5 5.7 80,.8 89,.4 92..1 87.,7 91.,3 94.,7 87.,2 52.,5 1,309 1,285 1,309 1,378 1,388 1,523 1,487 1,768 - Jan. Feb. Mar. Apr. May £_/ 1,725 1,754 1,959 1,899 1,931 946 985 1.,048 1,,090 1 ,098 779 769 911 809 833 110.6 102.2 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. 6 146. 7 145. 2 1,635 1,563 1,627 1 2 167.9 199.7 194.2 1,638 1,870 Total starts are Census estimates including farm for both permit-issuing and non-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 permit-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. 23 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES DATE 30-year 2 CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON CONV. & FHA MORTGAGES 1 NEW Aaa CORPORATE BONDS 4 SPREAD BETWEEN • YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 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 -- 7.95 7.75 7.60 7.55 7.65 n.a. n.a. .28 .18 -.10 7.24 7.28 7.46 7.57 8.01 -.14 .02 .36 1971 - J a n . Feb. Mar. Apr. May 1 2 — 7.32 7.37 7.75 Neither mortgage nor bond yields include allowance for servicing costs which are much higher for mortgages than for bonds. Generally, bonds ;pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the table. Based on FHA-fieId-office opinions about average bid prices in the private secondary market for new-home mortgages for immediate delivery. Data shown are for 30-year mortgages with minimum downpayments, and weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 15 years for 30-year mortgages. 3 Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities. 4 See note for Table 1. TABLE 17: Conventional Mortgage Terms DATE 1970 May June July Aug. Sept. Oct. Nov. Dec. 1971 Jan. Feb. Mar. Apr. Mayg/ NEW HOMES LOAN/ CON- FEES & PRICE LOAN TRACT CHARGES EFFEC- MATURITY AMT. RATIO (PER (YEARS) RATE TIVE - (PER ($000) CENT) RATE (PER CENT) CENT) 3 2 4 1 EXISTING HOMES CON- FEES & LOAN/ TRACT CHARGES EFFEC- MATU- PRICE (PER RATE RITY RATIO TIVE CENT) RATE (YEARS) (PER (PER CENT) CENT) 2 . 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 0.77 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 1 Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted opinions of field-office directors of the Federal Housing Administration, are available somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case of new home mortgage rates--in Table 16. 2 Fees and charges--expressed as a percentage of the principal mortgage amount—include loan commissions, fees, discounts, and other charges which provide added income to the lender and are paid by the borrower. They exclude any closing costs related solely to transfer of property ownership. 3 Includes fees & charges amortized over a 10 year period in addition to the contract interest rate. 4 Derived by FRB. / A
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