Full text of H.16 Capital Market Developments : June 25, 1973
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H.16 JU'i f ? »T5 J u n e 2 5 , 19 $3Prepared by the C AP IT A L MARKETS SECTION in conjunction with t h e MORTGAGE, AGRICULTURAL, and CONSUMER FINANCE SECTION CAPITAL MARKET DEVELOPMENTS DIVISION O F RESEARCH AND STATISTICS BOARD OF GOVERNORS F E D E R A L RESERVE SYSTEM Washington, D.C. 20551 T INDEX D E V E L O P M E N T S IN T H E C O R P O R A T E AND MUNICIPAL BOND MARKETS C A P I T A L MARKET Y I E L D S C A P I T A L MARKET VOLUME STOCK MARKET MORTGAGE MARKET SYMBOLS e ESTIMATE P PRELIMINARY r REVISED n.a. NOT AVAILABLE — — DATA DO NOT EXIST i Table 1 YIELDS, VOLUME AND RECEPTION CORPORATE BOND MARKET WEEK ENDING 1973 - Apr. May 6 13 20 27 4 11 18 25 1 8 15 22 NEW ISSUE 1 Aaa UTILITY RECENTLY 2 OFFERED Aaa UTILITY 7.51 7.45 7.40 7.45 7.61 7.55 7.63 7.59r 7.66p GROSS 3 OFFERINGS ($ MILLIONS) 7.50 7.47 7.52 7.42 139 83 70 492 7.42 7.45 7. 50 7.55 205 39 154 139—- 7.60 7.59 7.60r 7.69p 433 260 260 290 PER CENT SOLD BY END OF WEEK NEW ISSUES 4 IN SYNDICATE ($ MILLIONS) 90 100 100 98 4 0 0 45 93 97 72 96 61 0 44 6 64 100 73 100 154 0 100 0 MUNICIPAL BOND MARKET YIELDS WEEK E N D I N G 1973 - Apr. May MOODY'S NEW ISSUE Aaa BOND BUYER 2Q-BOND INDEX GROSS OFFERINGS ($ MILLIONS) PER CENT SOLD BY END OF WEEK NEW" ISSUES 4 IN SYNDICATE ($ MILLIONS) 6 13 20 o27 5.05 4.85 4.90 5.00 5.22 5.07 5.17 5.14 304 657 286 286 90 94 67 77 55 56 105 76 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. % 5.00 5.00 5.05 5.05 5.22 5.13 5.13 5.19 373 239 252 492 81 93 65 87 101 57 130 111 June 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 Aaa UTILITY DATE 1971 1972 1973 1973 - - - - 1 RECENTLY OFFERED Aaa UTILITY 2 MOODY'S SEASONED CORPORATE Aaa 3 U.S. GOVT. 20-YEAR CONSTANT MATURITY 4 B O N D BUYER High 8 . 2 6 ( 7 / 3 0 ) 8 . 2 3 (1/1) 7.71 (8/12) 51 ( 6 / 1 8 ) 6.23 (6/23) Low 7.02 (2/5) 7.17 (12/31) 7.06 (2/12) 5 . 6 9 (3/23) 4.97 (10/21) High 7 . 6 0 (4/21) 7.46 (5/12) 7.36 (4/28) 6 . 1 9 ( 4 / 1 4 ) 5 . 5 4 (4/13) Low 6.99 (11/24) 7.17 (1/7) 7.05 (12/8) 5 . 7 4 (11/17) 4.96 (10/21) High 7 . 6 6 ( 6 / 2 2 ) 7.6g (6/%2) 7.37 (6/22) 7,0.5.(6/22) 5.35 ( 3 / 2 2 ) Low 7.29 7.28 (1/5) 7.11 (1/5) 6.42 5.03 (1/12) Apr. 7.51 6 ( 1 / 2 1 ) 7.50 7.27 6.87 5.22 7.47 7.25 6.84 5.07 20 - - 7.52 7.25 6 . 8 4 5.17 27 7.45 7.42 7.27 6.88 5 . 1 4 4 13 May June (1/5) 7 . 4 0 7.42 7.26 6.94 5 . 1 0 11 — 7.45 7 . 2 6 6.98 5.10 18 7.45 7 . 5 0 7.29 6.98 5 . 1 4 25 7.61 7.55 7.32 7.03 5.20 1 7.55 7 . 6 0 7.35 7.05 5.22 8 7.63 7.59 7.36 7.05 15 7.59 7 . 6 0 7.36 7.02 5.13 5.13 22 7.66p 7.69p 7.37p 7. 05p 5 . 1 9 , , 5 20-BOND INDEX NOTES: 1 F e d # * ) Reierve series of implied yield on newly issued, Aae-reted utility bond with 5-year call protection. 2 Federal Reierve series of implied free-market yield o n competitively bid Aea-rated utility bond with 5-year call protection released from price restrictions sometime during the last 4 weeks. 3 Weekly average of daily closing figures. 4 Weekly average of daily figures. U.S. Treasury deta. figures. The average reting of Digitized5 forThursday FRASER 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 3 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS IN MILLIONS OF DOLLARS GROSS PROCEEDS 1I CORPORATE PERIOD 2 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 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 Q1 Q2 Q3 Q4 2,327 1,962 3,935 8,224 1st Half 3 Qtrs. Year 0 NOTES: 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts. 5,812 1 1972 1 1971 1971 January February March 1 STATE AND LOCAL 1972 1973 Table 4 NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER IN MILLIONS OF DOLLARS GROSS PROCEEDS BY TYPE OF ISSUE PERIOD 1972 - I I III IV • TOTAL 11,214 9,195 10,564 GROSS PROCEEDS BY TYPE OF ISSUER BONDS COMMON MEMO AND MANUFACPUBLICLY PRIVATELY ISSUES INCLUDED TURING OFFERED PLACED PREFERRED FOREIGN (CONVERTIBLE STOCK 4,634 2,781 3,798 245 449' 2,109 4,192 1,867 3,136 57 836 1,629 4,158 3,147 3,258 245 428 1,398 1973 - I 8,224 2,944 1,407 3,970 n.a. 1972 - Mar. 3,229 1,677 577 976 3 Apr. May June 3,275 3,598 4,341 1,622 1,676 1,336 789 744 1,218 864 1,148 1,786 15 100 130 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 Oct. Nov. Dec. 3,791 3,377 3,396 1,773 1,361 1,024 564 982 1,601 1,454 1,034 770 1973 - Jan. Feb. Mar. 2,327 1,962 3,935 989 641 1,314 287 316 804 1,050 1,104 1,816 1 COMMUNICATIONS OTHER ISSUERS 3,495 2,680 2,934 1*369 856 1,079 4,240 4,030 5,151 112 887 2,427 1,229 3,681 233 604 740 227 1,658 92 226 131 581 761 767 1,219 738 1,538 178 391 800 1,297 1,708 1,235 450 183 203 574 452 603 798 635 1,247 586 237 33 1,624 1,568 838 28 124 93 162 171 95 383 426 589 1,280 794 860 371 658 50 1,757 1,499 1,895 14 27 89 81 28 3 176 213 498 900 596 931 33 174 1,022 " . NOTES: 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 PUBLIC UTILITY Federal Reserve based upon available information. 1 1,218 980 1,483 Table 5A LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U . S . T R E A S U R Y 1 June 1. 1973 through June 2 2 . 1973 AMOUNT (MILLIONS OF DOLLARS) ISSUER COUPON RATE MATURITY MOODY'S RATING OFFERING YIELD CORPORATE L o u i s i a n a Pwr. & L t . Georgia Pwr. N Commonwealth Edison Potomac E l e c t . Pwr. Barnett Banks of F l a . , I n c . F l a . Pwr. Consolidated, Natural Gas I l l i n o i s Pwr. Consumers Power Co. Atlantic City Elect. Duke Pwr. G e n ' l . T e l . of Wise Mountain S t a t e s T e l . Arkansas Pwr & Lt P a c i f i c Pwr & L t . C i r c l e Income Shares Ohio Edison 1 s t mtge 1 s t mtge 1 s t mtge Com stk Com s t k Com s t k 1 s t mtge 1st 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 stk Com 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 8.00 7 7/8 7 5/8 2003 2003 2003 - - —— 2003 2003 2003 2013 2003 ' ' A A Aaa - - -- -- - - — — - - - - 1998 2003 7. 88 7.,85 7. ,60 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 — Aa Aa A Aaa A - - -- -- - - - - - - — - - — — — — NOTES: • Rights offering. 1 Includes corporate and other security offerings of $ 1 5 million end over. H.16 Table SB LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 June 1, 1973 through June 22 , 1973 2 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OFFERING YIELD MOODY'S RATING STATE AND LOCAL Washington, S t a t e of Georgia Highway Auth New York S t . Hous. Fin Agcy. Los Angeles DWAP Los Angeles DWAP S e a t t l e , Washington Louisiana, S t a t e of New Castle County, Del. 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 River P r o j e c t Agr. Imp & Pwr D i s t . , S a l t River 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 Port of New York & New J e r s e y Auth. Wash Sub Sanitary 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 - — 5.29 — 4. 79 4.95 4.91 5.13 5.42 5.42 4.83 5.39 5.22 6.02 5.34 4.00-5.25 4.10-5.50 4.20-5.90 4.35-5.20 — 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 Aa Aa Aa A-l /Aa A-l Aa A-l A-l Aa A A-l A A-l Other Farmers Home Adm. 301.0 7.35 7.35 NOTES: 1 Includes state and local security offerings of $ 1 0 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.-O. 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. 3 Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal Agencies. FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 As of June 22, 1973 ISSUER TYPE AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING CORPORATE Appalachian Pwr. P a c i f i c Gas & E l e c t . *Dow Chemical Delmarva Pwr. & Lt. Duquesne Light Michigan General * F i r s t a t Orlando Alabama F i n a n c i a l Group, Inc. Public Svc. E l e c t . & Gas Michigan Consolidated Gas *Northwestern Public Svc. Atlanta Gas Light Northern I l l i n o i s Gas Northern I l l i n o i s Gas Brooklyn Union Gas Penn. E l e c t . Portland Gas & E l e c t . Wise. Public Service West Texas U t i l i t i e s *Ohio Power *Cincinnati Gas & E l e c t . *South Central B e l l Tel. Instrument Systems Corp. 1 s t mtge Bonds Bonds 1 s t mtge 1 s t mtge Bonds 1 s t mtge Debs Com s t k Bonds 1 s t mtge bonds 1st mtge Com s t k Com s t k ( r t s ) Bonds Pref s t k Com s t k 1st mtge 1 s t mtge Bonds Bonds Sub debs 50.0 150.0 100.0 25.0 35.0 25.0 30.0 30,0 92.0 35.0 25.0 15.0 35.0 26.0 15.0 30.0 20.0 15.4 23.0 40.0 60.0 200.0 25.0 June June June June June. June June June July July July July July July July July July July July July July July INDEF 25 26 26 27 28 28 28 10 10 10 10 11 11 12 12 17 18 18 23 24 31 NOTES: * Included in table for first time. 1 Includes corporate and other security issues of $ 1 5 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 22, 1973 TYPE ISSUER AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING STATE & LOCAL ^Chesterfield C o . , Va. Md. Dept. of Trans. DeKalb Co. Sch. D i s t . , Ga. Washington Pub. Pwr. Supply Sys. Culver City Dev. Agy., C a l i f . HUD Housing Fremont, Neb. Allegheny Co., Pa. Rosebud C o . , Mont. P o l l . Cont. New York San Jose U n i f i e d S/D, C a l i f . frDarien, Conn. *Northvilie,Mich.,Pub S/D ^Macomb Co. Comm. C o l l . D i s t . , Warren Mich. Penna., S t a t e of Wash. Metro New York C i t y Lubbock, Tex. ^Oklahoma tCen. Okla Trans & Pk. Auth, Okla City Okla. *Texas Iowa S t . Bd of Regents Harris Co., Tex. Los Angeles DWAP Charlotte, N.C. G.O. G.O. G.O. Rev. Bonds Bonds Rev. G.O. Rev. G.O. G.O. Rev. G.O. 18 . 0 50 . 0 53 .7 150 . 0 16 .6 264 . 6 21 . 0 32 . 4 20 .0 86 .0 13,.0 10..0 10.0 June June June June June June June June June July July July July 2 3 10 10 G.O. G.O. Rev. G.O. G.O. G.O. 12.,3 150.,0 150.,0 325. 0 12. 3 14. 0 July July July July July July 10 10 11 11 12 16 G.O. G.O. Rev. G.O. Rev. G.O. 15. 7 10. 0 10. 0 16. 0 18. 0 22. 0 July July July July Aug. Aug. 18 19 26 26 26 26 27 27 27 28 28 15 21 S .. 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 1 STOCK PRICES DATE N Y S E INDEX 3 DJ INDUSTRIALS! 4 AMEX | 950.82(4/28) 26.68(4/28) 112.66(12/31) 797.97(11/23) 22.72(1/4) 100.52(2/26) 1971 - High Low 57.76(4/18) 48.73(1/4) 1972 - High Low 65.14(12/11) 1036.27(12/11) 28.53(4/14) 133.28(4/21) 889.30(1/3) 56.23(1/3) 25.61(1/3) 114.88(1/7) 1973 - High Low 65.48(1/11) 54.22(5/21) 1973 - A p r i l ^ May June 1051.70(1/11) 873.65(6/21) 2 TRADING VOLUME NYSE NASDAQ | AMEX | NASDAQ 8.9(12/30) 5.1(11/26) 22.1(2/12) 11.0(9/17) 6.7(2/5) 2.7(8/13) 21.8(11/10) 11.2(9/8) 7.4(3/10) 2.6(9/8) 11.7(3/10) 6.5(9/10) 10.4(1/12) 4.5(6/22) 26.70(1/8) 22.37(6/4) 136.18(1/12) 100.77 ( 6 / 4 ) 20.4(1/12) 11.4(6/1) 4.8(1/12) 2.4(6/1) 58.23 59.65 59.59 56.86 931.07 959.36 963.20 922.17 24.06 24.18 24.07 23.57 113.27 115.22 114.15 108.40 12.4 15.2 13.2 14.5 2.9 3.1 2.7 3.2 6.5 6.4 5.8 6.2 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 6.8 1 8 15 22 54.86 56.29 55.36 54.56 893.96 920.00 888.55 879.97 22.49 22.57 22.56 22.34 102.30 103.72 102.26 100.99 11.4 13.3 12.9 13.0 2.4 2.5 2.3 2.4 6 13 20 27 . . 5.2 .5.2 5.1 4.5 NOTES: 1 Figures other than highs and lows are Fridays only. Highs and lows are for the year and are not necessarily for Fridays. 2 Volume figures are weekly averages of daily figures (millions of shares). Trading is normally conducted for 554 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 Hours/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 20 22% 25 3 12/31/65 = 5 0 4 Average dollar value of shares listed. ^ H.16 10 Table 8 SECURITY CREDIT REGULATED MARGIN CREDIT EXTENDED BY END OF PERIOD BROKERS ON 1 BROKERS ON 2 MARGIN CONVERTIBLE STOCK BONDS 3 BANKS UNREGULATED NONMARGIN STOCK CREDIT AT BANKS OTHER SECURITY CREDIT AT BANKS OUTSTANDING 19-72 - Apr. May June July Aug. Sept. Oct. Nov. Dec. 7,010 7,20CL7,510 7,660 7,780 7,800 7,800 7,890 7,900 240 241 244 248 246 248 250 249 254 967 994 955 979 1,032 1,008 943 902 865 1,150 1,141 1,644 1,772 1,800 1,871 1,875 1,871 1,896 1,278 1,296 1,274 1,285 1,298 1,255 1,351 1,296 1,528 1973 - Jan. 7,700 7,500 7,200 7,040 249 248 244 232 865 867 879 872 1,940 1,954 1,917 1,969 1,484 1,508 1,566 1,482 Feb. Mar. Apr. CHANGE IN OUTSTANDING - 1972 - Apr. May June July Aug. Sept. Oct. Nov. Dec. 1973 - Jan. Feb. Mar. Apr. 390 190 310 150 120 20 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 -5 -1 -4 -12 2 12 -7 44 14 -37 52 -44 24 58 32 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 M I L L I O N S O F D O L L A R S MUTUAL SAVINGS BANKS REGULAR D E P O S I T S DATE NET , FLOW ANNUAL GROWTH RATE 1 3 SAVINGS & LOAN ASSOCIATIONS 2 NET NEW MONEY SHARE CAPITAL ANNUAL 3 GROWTH RATE NET FLOW NET NEW MONEY TOTAL 2 DEPOSITS NET FLOW ANNUAL 3 GROWTH RATE NET' NEW MONEY NOT SEASONALLY ADJUSTED 1970 4,517 6.8 936 10,965 8.1 5,285 15,482 7.7 6,221 1971 9,621 13.5 5,678 28,230 19.3 20,653 37,851 17.5 26,331 1972 9,788 12.0 5,397 32,902 19.5 23,884 42,690 17.0 29,281 - — 1972 1973 - - • Feb. 931 - - 809 2,818 Mar. 1,507 -- 773 4,287 Apr. 464 — 280 1,744 Feb. 551 — 402 Mar. 1,102 Apr. &/ 96 — 2,700 3,749 — 3,509 2,532 5,794 -- 3,305 — 1,668 2,208 1,904 —— 1,795 2,455 mm tm 280 3,702 -- 1,628 4,804 -- -88 866 — 756 962 . 1,948 2,197 1,908 668 SEASONALLY ADJUSTED 1972 - j 761 10.2 902 12.0 Jan. Nov. Dec. 1973 - 808 10.6 Feb. 465 6.1 Mar. 579 7.5 Apr. &/ 387 5.0 — - x - - 2,246 13.3 2,164 12.7 4,026 23.3 -- 3,007 12.3 3,066 12.5 4,834 19.4 1,834 10.4 —— 2,299 9.1 2,430 13.7 —— 3,009 11.8 1,294 7.2 1,681 6.6 NOTES: r - ' , 1 Regular deposit! at mutual savings tanks 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 datei is the annualized monthly percentage increase in deposits. t Source: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. H.16 Table 10 12 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS OF DOLLARS, SEASONALLY ADJUSTED OUTSTANDING COMMITMENTS PERIOD TOTAL ALL SAVINGS MUTUAL & LOAN SAVINGS BKSi ASSOCIATIONS (N.Y. STATE] ( B i l l i o n s of D o l l a r s NET CHANGE TOTAL ALL SAVINGS MUTUAL & LOAN SAVINGS BKS ASSOCIATIONS (N.Y. STATE) S e a s o n a l l y Adjusted). r / 1971 - D e c . 16.6 13.1 3.6 .09 -.06 .15 1972 - Jan. Feb, 18.0 19.1 19.7 20.1 20.6 20.7 21.0 21.8 22.9 23.6 24.3 24.9 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 .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 25.9 26.5 26.0 25.2 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 March April May June July Aug. Sept. Oct. Nov. Dec. 1973 - Jan. " Feb. Mar. Apr. NOTES: Based on data from Federal Home Loan Bank Board and Savings Banks Association of New York State. Both series include a minor amount of nonresidential commitments; S&L commitments also include loans in process. Net changes are derived directly from unrounded end-of period outstanding levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. H.16 11 Table 11 NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN MILLIONS OF DOLLARS PERIOD TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES INTERMEDIATE AND LONG-TERM ISSUES TOTAL FHLB -439 -696 -388 -483 +604 +335 +453 +942 -96 +563 -100 -451 -453 -136 +411 +200 +526 +849 +300 +500 —— • — +399 +248 -1 +299 +813 -1 -1 +100 -47 +311 +475 -403 -2 -1 -200 -1 -1 -1 Dec. -259 +169 +176 +138 +129 +599 -367 +120 +624 -112 +628 +273 +103 +337 -1 1973 - Jan. Feb. Mar. +131 +452 +582 +122 +312 +378 +251 -1 1971 - Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1972 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. -450 -651 -452 -337 -39 -87 -28 +200 -250 FHLMC FNMA *• mm +350 +200 -1 +201 +450 -13 +554 +649 +550 +500 — "" » —~ +300 - —— - — — • - w +100 -150 -1 +400 +6 +10 +379 +9 +140 +204 +602 +250 -- +500 - — -1 +814 — - - . -— -25 76 +116 +51 -339 -245 +65 -347 +193 +135 -73 +93 -396 +63 -259 -230 -72 +139 -170 -214 -366 +121 +524 -65 +317 -202 —— +200 - - — SHORT-TERM DISCOUNT NOTES . . NOTES: Based on data from Federal Home Loan Bank Board (FHLBB), Federal National Mortgage Assoc. (FNMA) and Federal Home Loan Mortgage Corp. (FHLMC). Intermediate and long-term issues are those with an original maturity of one year or more, including Government National Mortgage Association mortgage backed bonds. H.16 Table 12 NET CHANGE IN MORTGAGE HOLDINGS IN MILLIONS OF DOLLARS FINANCIAL INSTITUTIONS TOTAL INCLUDING FNMA-GNMA TOTAL 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 4,872 5,931 5,286 4,779 5,114 5,943 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 3,760 3,754 5,217 3,565 3,688 5,148 n. a. 900 900 1,200 1,200 458 331 568 506 2,045 2,428 3,303 3,291 162 29 77 n. a. 195 66 69 1972 - J u l y Aug Sept Oct Nov Dec 4,849 5,471 4,748 4,714 5,282 5,697 4,593 5,179 1 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 3,130 101 79 111 135 299 782 147 292 34 - 24 70 96 1973 - Jan Feb Mar Apr May June July Aug 4,501 4,381 5,472 4,273 4,269 5,348 1,112 1,079 1,262 1,162 475 388 601 554 2,467 2,730 3,371 3,206 219 72 114 228 112 124 PERIOD COMMERCIAL BANKS MSB's S & L's INSURANCE FNMA-GNMA COMPANIES Not S e a s o n a l l y Ad lusted 1969 1970 1971 1972 1972 - J u l y Aug Sept Oct Nov Dec 1973 - Jan Feb Mar Apr May * July Aug S e a s o n a l l y Ad l u s t e d ' NOTES: 1 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 89per cent of the net increase estimated for all holders in 1 9 7 2 . 2 Beginning January 1972 data reflect activity in limited amount of conventional mortgages. H.16 T a b l e 13 NET INCREASE IN MORTGAGE DEBT OUTSTANDING IN B I L L I O N S O F D O L L A R S , S E A S O N A L L Y A D J U S T E D A N N U A L R A T E S RESIDENTIAL QUARTER TOTAL TOTAL FAMILY MULTIFAMILY COMMERCIAL MULTFAMILV & 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 14.5 15.2 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 - 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 T a b l e 14 PRIVATE HOUSING PERMITS, STARTS, COMPLETIONS, AND MOBILE HOME SHIPMENTS IN T H O U S A N D S OF U N I T S , S E A S O N A L L Y A D J U S T E D A N N U A L RATES PERMITS PERIOD 1972 1973 - - TOTAL 1—FAMILY COMPLETIONS STARTS 2 - O R MORE FAMILY TOTAL 1—FAMILY 2 - O R MORE FAMILY TOTAL 1 —FAMILY MOBILE 2 - O R MORE HOME FAMILY SHIPMENTS January 2,204 1,098 1*106 2,439 1,395 1,044 1,968 1,154 814 554 February 2,056 959 1,097 2,540 1,281 1,260 2,088 1,141 947 552 March 2,007 954 1,053 2,313 1,310 1,003 1,983 1,137 846 595 2,204 1,215 989 1,954 1,154 799 634 2,318 1,308 1,011 1,891 1,121 770 572 2,315 1,283 April 1,991 963 1,028 May 1,955 923 1,032 June 1,132 1 2,121 989 1,032 1,904 1,125 779 583 July 2,108 1,013 1,095 2,244 1,319 925 1,891 1,095 799 556 August 2,237 1,031 1,206 2,424 1,373 1,051 1,973 1,210 763 534 September 2,265 975 1,290 2,426 1,382 1,045 1,972 1,118 853 494 October 2,216 1,086 1,130 2,446 1,315 1,131 1,945 1,156 789 548 November 2,139 961 1,178 2,395 1,324 1,071 1,980 1,153 828 666 December 2,377 947 1,430 2,369 1,207 1,162 2,147 1,168 980 606 January 2,218 1,057 1,161 2,497 1,450 1,047 2,191 1,068 1,123 2,456 1,372 1,084 2,147 2,033 1,259 823 774 648 February March 2,071 989 1,082 2,260 1,245 1,015 2,159 1,308 852 737 Aprilr/ 1,834 923 911 2,104 1,197 907 2,007 1,120 886 680 May 1,867 898 969 2,430 1,268 1,162 . 1,324 642 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. Table 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES CONVENTIONAL LOANS PRIMARY MARKET NEW HOMES EXISTING HOMES 1 PERIOD RATE (IN PER CENT) SPREAD (BASIS POINTS) SPREAD BETWEEN RETURNS ON NEW Aaa NEW HOMES CONVENTIONAL UTILITY 1 AND HUD(FHA) BOND NEW HOME YIELD DISCOUNT ' SPREAD (PERCENTAGE MORTGAGES (IN PER CENT) (BASIS (BASIS POINTS) POINTS) POINTS) HUD(FHA) INSURED LOANS SECONDARY MARKET 1 RATE (IN PER CENT) SPREAD (BASIS POINTS) YIELD (IN PER CENT) 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 - Jan Feb Mar Apr May 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 .!8 .16 .19 .48 .41 4.0 ' 3.8 3.7 4.1 4.3 4 .4 r 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 .21 7.34 7.24 7.45 7.38 7.32 7.38 7.37 7.40 7.38 7.09 7.15 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 ,17 .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 7.38 7.40 7.49 7.46 7.51 2 / July Aug Sept Oct Nov Dec 1973 - Jan Feb Mar Apr May V NOTES: 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. 1 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 IB Table 16 FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS CONVENTIONAL GOVERNMENT-UNDERWRITTEN DATE OF AUCTION 1972 - Oct Nov Dec. 1973 - Jan. Feb, Mar. Apr. May NOTES: AMOUNT (IN MILLIONS OF DOLLARS) AVERAGE YIELD OFFERED | ACCEPTED 10 16 30 271.2 186.4 224.9 162.7 6 13 27 - - • —— 78.7 60.8 49.2 36.6 7.72 7.70 42.4 66.3 7.68 7.69 61.3 92.1 7.69 7.70 7.71 4 11 26 7 .73 7.74 - - ' 2 8 22 82.2 108.7 __ 74.2 107.0 5 6 19 21 5 6 19 21 128.7 65.4 - - - - 71.6 7.73 - - - - 107.7 - - - - 297 .3 168.7 - - 2 3 16 17 30 234.6 261.2 185.9 14 29 253.3 212.4 187 .7 140.0 11 184.5 142.2 OFFERED 42.2 37.2 - - - - —— - - - - - - 75.0 68.0 7.90 — 7.90 —— w - - - - - - 36.4 30.9 7.87 —— —— - - - - - - 25.5 7.84 - - —— - - - - - - - - - - 100.9 62.9 7.89 66.0 49.6 7.92 7.95 7 .75 - - 60.3 44.3 7.81 - - - - - - - - 86.8 56.4 8.02 8.11 145 .9 7 .86 - - 190.7 111.9 7.89 81.6 - - - - - - 7.92 111.0 128.9 88.4 88.2 8.17 8.23 7 .96 8.00 117.6 113.3 84.4 74.0 8.31 8.39 8:04 110.1 74.1 8.44 - - 216.6 AVERAGE YIELD | ACCEPTED 39.3 110.3 170.8 AMOUNT (IN MILLIONS OF DOLLARS) - - * Average secondary market yields are gross before deduction of the fee of 38 basis points paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for Federal National Mortgage Association (FNMA) commitment fees and FNMA stock purchase and holding requirements on 4-month commitments. Mortgage amounts offered by bidders relate to total eligible bids received. H.16