Full text of H.16 Capital Market Developments : June 26, 1972
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i ) e c o n t b o l l e d L.5.8 s i x m o n t h s Confidential (F.R.) \ , " \ J f'ji*$7 / CAPITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. June 26, 0 6" ) - ]/ • INDEX Developments in the Corporate 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: Estimate Preliminary Revised Not a v a i l a b l e TABLE 1: Yields, Volume and Reception YIELDS MOODY'S SEASONED NEW ISSUE 1 Aaa WEEK ENDING: 1972 - May June CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OF WEEK OFFERINGS WITHIN 28 DAYS 5 12 19 26 7.20 7.28 7.25 7.19 7.34 7.33 7.30 7.27 601 344 r 215 360r 70 79 57 97 n.a. n.a. n. a. n. a. 2 9 16 23 30 7.09 7.25 7.26 7.31 n.a. 7.23 7.24 7.25 7.23 n.a. 260 290 375 23i 300e 55 68 73 91 n. a. n. a. n.a. n.a. n. a. ; 1 1 YIELDS BOND BUYER MOODY'S SEASONED 20 SEASONED BOND INDEX WEEK ENDING: 1972 - May June MUNICIPAL BOND MARKET VOLUME 2 GROSS OFFERINGS 5 12 19 26 5.10 5.20 5.15 4.90 5.35 5.39 5.29 5.19 478 320 350 618 2| 9 16 23 4.85 5.00 5.10 5.20 n.a. 5.15 5.31 5.36 5.43 n.a. 274 553 548 499 455e 30 PER CENT SOLD BY END OF WEEK 1 1 BONDS SCHEDULED 1 WITHIN 28 DAYS 73 87 76 „ 81 1,246 1,470 1,134 954 55 58 79 83 n.a. 1,267 826 783 1,072 n.a. 1 Derived by a d j u s t i n g to a A a a basis, new issues of publicly-offered corporate bonds with call p r o t e c t i o n , rated A , A a , or A a a by M o o d y ' s Investors Service (except serial and convertible issues, offerings of natural gas pipeline and foreign c o m p a n i e s , and bonds guaranteed by the Federal G o v e r n m e n t . ) 2 M i l l i o n s of dollars unless otherwise indicated. Note: See footnotes to Table 3 TABLE 2: Details on Inventories DAT I: AMOl (MIL. . OFFERED 6/15 6/20 6/21 6/22 OFFERED | 100.,0 50. 0 60.,0 20.,0 DATE | RELEXSED 6/6 6/19 Phila Elect Fla Pwr Columbia Gas PoS. New Mexico June 1 7.45 7.50 7.52 7.52 5 5 5 5 Aa Aa A A 50% 98% 80% 60% yrs yrs yrs yrs CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PRO| ISSUER COUPON IN YIELD CALL PROT. PORTION RELEASED YIELD 12.0 Central La Elect tINVENTORIES 1 MUNICIPALS ( BLUE LIST | IN SYNDICATE 7 1/2 7.50 +13 A 5 yr s 70% CORPORATES IN SYNDICATE 26 780 171 108 2 9 16 809 801 912r 938 193 316 296 224 133 33 109 78 23 N.C. 7 1/2 7 5/8 7 1/2 7.1/2 ESTIMATED PRO' PORTION SOLD AMOUNT DATE 1972 - May CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK * ORIGINAL RATING AND ISSUER YIELD CALL PROTECTION COUPON - N o call protection. All figures in millions of dollars. Blue List is daily average for week ended F r i d a y , e x c e p t which i? daily average of three days ended W e d n e s d a y . All other figures are as of Friday. for latest week T A B L E 3: DATE NEW CORPORATE Aaa 1 High Grade Bond Y i e l d s MOODY'S SEASONED CORPORATE Aaa 2 U.S. G O V E R N M E N T 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS 4 High Low 9 . 3 0 (6/19) 7.68 (12/18) 8 . 6 0 (7/3) 7.48 (12/21) 7.55 ( 5 / 2 9 ) 6.17 (12/18) 7 . 1 2 (5/29) 5.33 ( 1 2 / 1 1 ) High Low 8.23 6.76 (5/12) (1/29) 7.71 (8/13) 7.06 (2/12) 6.51 (6/18) 5 . 6 9 (3/23) 6 . 2 3 (6/24) 4 . 9 7 (10/21) High Low 7.42 6.86 (4/21) (1/14) 7.36 7.16 6.19 5.96 5.54 4.99 • June 1 2 3 4 2 9 16 23 7.09 7.25 7.26 7.31 7.23 7.24 7.25 7.23 (4/28) (1/21) (4/14) (1/14) 5.97 6.01 6.01 6.00 5.15 5.31 5.36 5.43 N e w c o r p o r a t e issues, w i t h call p r o t e c t i o n , adjusted (as d e s c r i b e d in f o o t n o t e 1 of T a b l e 1) to a A a a b a s i s . W e e k l y a v e r a g e of daily figures. A v e r a g e term of b o n d s included is 2 2 - 2 4 years. W e e k l y a v e r a g e of daily figures. T h u r s d a y figures. T h e a v e r a g e r a t i n g of the 20 bonds used in this, index falls m i d w a y b e t w e e n the four top g r o u p s as c l a s s i f i e d by M o o d y ' s Investors Service. N o t e - - H i g h s and lows are for i n d i v i d u a l series and may be on d i f f e r e n t dates for d i f f e r e n t series. (4/13) (1/13) 6 TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) < GROSS PROCEEDS CORPORATE PERIOD 1972 1971 1 STATE AND LOCAL 2 1970 January February March 3 ,205 3 ,369 3 ,229 3,115 3,000 6,075 2,636 1,802 3,539 April May June 3 ,184 3-,300e 4,042 3,300e 4,375 3,170 3,909 3,389 July August September 4,147 2,532 3,768 2,768 2,274 3,518 October November December 3_,387 3,704 3,673 3,777 4,182 3,980 12,190 11,688 10,447 10,764 7,977 10,468 8,560 11,939 23,844 34,325 45,089 18,445 27,005 38,944 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1 2 9, 803 1972 j 1971 1970 1,762 1,953 2,195 2,732 1,851 2,258 1,340 1,214 1,555 2,086 l,870e 1,891 2,167 2,013 1,647 996 1,085 1,989 1,903 2,098 1,348 1,359 1,758 1,728 2,264 2,068 1,924 1,748 2,190 6,841 6,081 5,990 6,060 4,109 3,728 4,465 5,862 12,912 18,902 24,962 7,837 12,302 18,164 j 1 5,910e Securities and Exchange Commission estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH 1971 - I F H I IV TOTAL 117688 10,447 10,764 GROSS PROCEEDS BY TYPE OF ISSUE COMMON BONDS AND MEMO: PUBLICLY PRIVATELY PFD. ISSUES INCLUDED OFFERED PLACED STOCK FOREIGN | CONVERTIBLE 6,546 1,758 3,384 215 1,351 1,641 4,725 4,079 114 652 5,135 2,439 3,193 133 767 GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS' 3,,130 2,,202 2,,543 2,910 2,651 3,041 896 2,,263 1,,053 4,753 3,331 4,164 MFG. 1972 - i 9,805 5,361 1,593 2,851 74 511 13,525 2,261 1 ;,476 4,541 1971 - Apr. May June 4,042 3,271 4,375 2,116 2,148 2,282 507 491 760 1,419 633 1,332 116 47 52 384 255 712 1,,135 588 1,,206 1,267 588 1,055 273 405 218 1,367 1,489 1,897 July Aug. Sept. 4,147 2,532 3,768 1,331 1,428 1,966 619 416 606 2,196 687 1,196 72 34 8 199 160 293 582 474 1 ,146 732 849 1,070 1 ,622 359 282 1,210 850 1,271 Oct. Nov. Dec, 3,387 3,704 3,673 1,942 -.2,003 1,190 723 433 1,283 723 1,269 1,201 59 62 12 222 395 150 662 811 980 933 1,217 891 432 269 352 1,360 1,408 1,450 1972 - Jan. Feb. Mar. 3,205 3,369 3,229 1,767 1,917 1,677 604 412 577 834 1,041 976 59 12 3 195 83 233 392 529 604 533 988 740 752 498 227 1,529 1,354 1,658 3,184 3,300 1,622 1,600 700 700 861 1,000 15 n.a. 92 210 572 900 1,211 875 177 375 1,222 1,150 Apr. May e/ 1 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. T A B L E 6: Large Long term Public Security Issues for New Capital (continu. d) (Other than U.S. Treasury)' — ISSUER , (MILLIONS TYPE 2 Corporate OF DOLLARS) Consumers Power Colorado Interstate Gas Tappan Co. Wilson Certified Foods Sutro Mtge. Inv. Tr. Natural Gas Pipeline Co. Iowa Pub. Service Marathon Mfg. Co. Hartford Elec. Light Columbus & So. Ohio Elec. White Motor Co Bds. Duke Pwr Co. New Jersey Telphone Co. New Jersey Bell Tele. Baltimore-Ohio Ry. West Penn. Power Fairchild Camera & Instru. Cons. Edison Co of NY Inc. Public Svc. of New Hamp. Public Svc. of New Hamp. Philadelphia Electric Pullman Transport Leasing Pullman Transport Leasing Meyer, Fred. Inc. Duquesne Light Co Fla pwr & Lt. Columbia Gas Systems Public Svc of New Mex Long Island Lighting Co Pa Elect Portland Gen'l Elect Consumers pwr Waste Management Inc. Pittston Co Cum. Pref/j>xk 60.0 Debs. 75.0 50.0 Notes 55.0 1st M t g e . 35.0 Bds. Com. Stk. 17.0 Com. Stk. 123.1 Pref. 15.0 20.0 Bds. 100.0 Bds. 4.0 Eq. Tr. 16.0 Eq. Tr. Conv. deb. 15.0 35.0 1st mtge 50.0 Bonds 60.0 Debs 20,0 Bonds Com stk (rts)39.4 25.0 Pref stk 30.0 Cum Pref 70.0 Cum Pref 26.4 Com stk 65.0 Conv deb s June 5 thronph tnno amuijnt bds. Cm. St. Deb. Sub. Deb. Debs. Bds. Cm. St. Bds. 1st M t g e . Cm st 70.0 35.0 27.4 25.0 17.5 40.0 17.0 22.9 35.0 25.0 24.1 MATURITY 2002 1992 COUPON 1 RATE OR NET INTER EST COST j offkr- ' M O O D Y ' S i;.( j RATING YIELD 7.50 7.50 7.375 7.548 Aa A 8 6 6 7 8.40 6.75 6.95 7.45 Baa 7.45 6.75 Aa Aa —- 1997 1982 1980 2002 3/8 3/4 7/8 3/8 —— 2002 1979 7.50 7.00 —— «* — —— -- -- 7.38 6.50 6.20 7.63 7.40 6.53 6.20 7.47 -- -- -- -- -- -- 2012 1978 1997 2002 • -- 2002 1998 ' 1973-76 1992 1997 2002 2002 1997 2002 -— --- — 7.38 7.50 7.75 7.75 4.50 7 1/2 7 5/8 7 1/2 7 1/2 — 8.12 7.95 7.72 7.67 7.45 5.50-6.,75 7.75 4.50 7.50 7.50. 7.52 7.52 — 8.00 7.95 7.72 -- -- -- 1997 4.00 4.00 A A -- Aaa • Aaa Ba Aa — — -- A Aa A Ba Aa Aa A A — --- Baa TABLE 6: Large Long-term Public Security issues for New Capital (continued) (Other than U.S. Treasury) 1 ISSUER TYPE 2 State and Local Part of Tacoma, Washington Georgia-Highway Auth. HUD Illinois Housing Dev. Auth. Gainesville, Florida Los Angeles DWAP Los Angeles DWAP Reedy Creek Imp. Dist., Fla. Cincinnati, Ohio Seattle New York State Pwr Authority New York Pwr Auth Penna New York Job Dev. Auth. New Jersey Educational Fac.Auth. New Jersey Educa. Fac. Auth. Houston Springfield, Missouri Springfield, Missouri Montgomery County East Chicago, Indiana Bergen Co. N. J. Connecticut Okla. Cit. Muni. Imp. Auth.,Okla Chester City. Sch. Auth., Pa. North East Indp S/Dj San Antonio Tex. Hillsborough Co Ind. Dev. Auth, F 1 a . Kentucky Turnpike Auuh ' Kentucky Turnpike Auth G.O. Rev. Bds. Rev. Rev. G.O. G.O. G.O. G.O • G.O. Rev. Rev. Rev. G.O. Rev. Rev. G.O. Rev. Rev. G.O. Rev. G.O. G.H, Rev-Ref. G.O. AMOUNT (MILLIONS OF DOLLARS) MATURITY June 5 through June 23, 1972 COUPON 1 1 RATE OR MOODY'S NET INTERI;.( RATING EST COST VIKLD J 15.1 25.0 209.1 15.1 18.0 20.5 19.5 20.0 9.8 10.5 95.0 29.0 50.0 15.0 10.6 4.1 35.1 13.5 16.5 21.0 13.5 10.2 90.0 9.9 29.3 1976-2005 1976-97 1973-2013 1973-2015 1974-2000 1978-97 2012 1974-2002 1973-2002 1974-2012 2010 1986-95 1975-2002 1975-94 2007 1973-92 1973-92 1977^92 1992 1973-92 1973-97 1973-90 1973-87 1972-1994 5.97 G.O. 10.0 1977-199= •v. 06 G.O. Rev. Rev 27.0 121.7 37.6 2007 2008 1982-1992 -- 5.45 4.98 4.97 5.53 5.18 5.23 5.23 5.74 4.54&5.19 5.37 5.32 5.05 • -- 5.92-5.95 4.75 5.30 5.29 4.69 3. 85-5.90 2. 80-5.50 2. 60-5.08 2. 90-5.60 3. 00-5.50 3. 75-5.20 5.,40 3.,50-5.90 2. 80-5.40 3..20-5.70 5..50 4,.75-5.30 3,.40-5.80 3,.35-5.40 5,.90-6.00 3,.10-5.65 2 .90-5.50 3 .70-5.20 ' 5.49 3 .00-5.10 A Aa Aaa Aa A Aa Aa 2 .90-5.25 2 .80-4.75 5. 10-5.50 Aa Aaa A —— —— --- 5.75 6.13 4.90-5.88 Aa A-l A-l A-l Aa Baa -1 Baa-1 Aa Aa Aa Aa -- -- -- 3 .70-5.30 A-l 5 .75 A A --- T A B L E b: Large Long t :rm Public Security Issues for New Capital (continued) (Other than U.S. T r e a s u r y ) 1 I SKl'KR State and Local Kaine Health Fac Auth t.'aine Health Fac Auth Cleveland City Sch Dist Montgomery Medical Clinic Bd, Ala. Montgomery, Ala., Med Clinic 3d. Nashville and Davidson Co., Tenn Metro Gov't King Co., Wash Milwaukee Co., Wis. Milwaukee Co e , Wis. Sacramento MUD, Cal Sacramento MUD, Cal Chester City School Auth, Pa Chester City School Auth, Pa Chester City School Auth, Pa New Jersey Mortgage Finance Agency TYPE 2 AMOUNT (MILLIONS OF DOLLARS) 1st mtg rev 1st mtg Bonds 8.1 20.0 MATURITY 2002 1976-1987 1973-1992 June 5, through June 23, 1972 COUPON ! RATE OR i M'FI '.R - MOODY'S NET INTER[;,( RATING EST COST j VIl.l.i) 6.25 4.10-5.90 3.10-5.75 A * Rev 3.8 1976-1987 4.20-5.90 Rev. 9.1 2000 6.20 -- G.O. G.O. G.O. G.O. Rev Rev Rev Rev Rev 10.0 30.0 14.7 4.2 12.2 37.8 16.0 5.5 7.7 1973-2002 1974-2012 1973-1991 1973-1991 1975-1991 2012 1972-1984 1989 1994 5.24 5.80 4.66 4.08 5.42 5.42 5.98 5.98 5.98 3.00-5.50 3.25-6.00 2.90-5.50 2.90-4.30 3.40-5. 15 5.50 2.75-5. 90 6.00 6.10 Aa A Aaa Aaa Aa Aa Baa Baa Baa Rev 23.7 1973-1982 4.76 3.25-4. 75 1977 6.45 5.45 Other Farmers Home Administration Notes 300.1 tf i glits -of f o r i n g . L n c l u d u s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n S t a t e and local s e c u r i t y o f f e r i n g s of $ 1 0 m i l l i o n and o v e r . and In c a s e general of S t a t e and local government securities, G.O. denotes ovu obii gat i on ; '<ev.-l.lt., r e v e n u e o b l i g a t i o n s s e c u r e d o n l y by i n c o m e from p u b l i c utili t i e s ; Rev.-Q.-lit., r e v e n u e b o n d s s e c u r e d o n l y by i n c o m e from q u a s i - u t i 1 i t i e s ; R e v . - S . T . , r e v e n u e b o n d s s e c u r e d by r e v e n u e from s p e c i f i c t a x e s o n l y ; R e v . - R e n t . , b o n d s s e c u r e d s o l e l y by l e a s e p a y m e n t s . I n c l u d e s f o r e i g n g o v e r n m e n t and I n t e r n a t i o n a l B a n k for R e c o n s t r u c t i o n D e v e l o p m e n t i s s u e s and n o n - q u a r a n t e e d i s s u e s by F e d e r a l A g e n c i e s . 11 TABLE 7: Forthcoming Large Long-term-Public Security Offerings for New Capital (Other than U.S. Treasury) 1 ISSUER TYPE Corporate Louisville Gas & Elect Georgia Pwr Institutional Investors Trust Hanover Square Realty Investors Cooper Laboratories Inc Western Mass Elect Lakehead Pipeline of Wise Baltimore Gas & Elect Boston Co Mtg Inv. American Internat'l Group Inc Michigan Consol Gas Northern 111 Gas Penn Pwr & Lt Central Maine Pwr Pacific Gas & Elec Co New England Pwr Co Gen'l Tel of Southeast Southern Bell Provident Nat'1 Bank BankAmerica Inc Commercial Credit Co Central Soya Medical Mtg Inv Fidelco Growth Investments Bonds Bonds Conv debs Conv debs Debs 1st mtg Debs Bonds Conv deb Conv debs Bonds 1st mtg Pref 1st mtg 1st mtg 1st mtg 1st mtg Bonds Debs Debs Debs Debs Debs Conv debs AMOUNT (MILLIONS OF DOLLARS) 20.0 75.0 30.0 25.0 20.0 30.0 30.0 50.0 24.0 30.0 35.0 40.0 35.0 25.0 125.0 25.0 25.0 250.0 21.0 100.0 100.0 30.0 50.0 25.0 APPROXIMATE DATE OF OFFERING June June June June June June June June June June July July July July July July July July July Indef Indef Indef Indef Indef 26 27 27 27 27 28 29 29 29 6 11 11 11 12 13 17 19 TABLE 7 Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) ISSUER TYPE State and Local West Virginia Delaware, State of Chicago Park Dist Alexandria, Va. Washington Subs San Dist, Md New York State St. Louis, Mo. Wayne Co., Mich Oregon, State of Oklahoma City, Okla New York, N.Y. Ohio, State of Ohio, Pub Facilities Comm Memphis, Tenn * 1 2 G.O. G.O. G.O. G.O. G.O. G.O. G.O. Rev G.O. G.O. G.O. G.O. Rev G.O. A s 0 f June 2 3 , 1972 AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING 30.0 35.0 10.0 16.6 23.2 151.0 19.7 14.7 75.0 13.4 267.2 75.0 75.0 16.0 June June June June June June June July July July July July July July 26 27 27 27 28 28 28 6 11 11 12 20 20 25 Included in table for first time. — Includes corporate and other issues of 515 million and over; State and local Government issues of S10 million and over. Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. Table 8 STOCK PRICES AND VOLUME STOCK PRICES 1 ' TRADING VOLUME 2 " DATE NYSE I N D E X 3 ' D J . INDUSTRIALS AMEX 4 NYSE AMEX 1970 - High Low 52.36 (1/5) 37.69 (5/26) 842.00(12/29) 27.02 (1/8) 631.16 (5/26) 19.36 (5/27) 18.5 (12/4) 7.8 (8/14) 7.1 (1/2) 1.8 (8/14) 1971 - High Low 57.76 (4/28) 48.73 (1/4) 950.82 (4/28) 26.68 (4/28) 797.97(11/23) 22.72 (1/4) 22.1 (2/12) 11.0 (9/17) 6.7 (2/5) 2.7 (8/13) 1972 - High Low 61.38 (5/26) 56.23 (1/3) 971.25 (5/26) 28.53 (4/14) 889.30 (1/3) 25.61 (1/3) 21.2 (3/24) 14.0 (3/31) 7.4 (3/10) 3.9 (6/16) 5 12 19 26 59.30 59.19 60.54 61.38 941.23 941.83 961.54 971.25 27.53 . 27.48 27.86 27.94 14.4 14.4 15.6 16.5 4.0 4.1 4.4 4.4 2 9 16 26 60.95 59.35 60.04 59.89 961.39 934.45 945.06 944.69, 27.85 27.44 27.50 27.37 15.3 14.3 15.5 13.9 4.0 4.3 3.9 3.6 1972 - May June NOTES: 1. Figures other than highs and lows are Fridays only. Highs and lows are for the year and are not necessarily for Fridays. 2. NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange. Volume figures are daily averaged for the entire week. (millions of shares). Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or In recent years, however abbreviated trading to the extent, and over the time Hours/ Days/ From Through: Day Week January 3, 1969 July 7, 1969 January 2, 1970 4. July 3, 1969 December 31, 1969 May 1, 1970 Average dollar value of shares listed. 4 . 4-1/2 5 5 5 5 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 25 u T A B L E 9: Security Credit END OF P E R I O D NET CREDIT C U S T O M E R S ' ' C U S T O M E R S ' N E T E X T E N D E D BY* BROKERS AND FREE C R E D I T NET DEBIT DEALERS 3 BALANCES BALANCES CREDIT EXTENDED TO MARGIN CUSTOMERS BY: TOTAL BROKERS' 1 B A N K S ? 1 Outstanding 2 2 2 2 2 2 2 ,798 ,660 ,550 ,440 ,210 ,200 • ,100 ,160 ,170 ,220 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 4,300 4,530 4,620 4,720 4,790 4,850 4,930 4,950 4,910 5,400 2 2 2 2 2 2 2 2 2 2 ,360 ,340 ,340 ,390 ,420 ,430 ,430 ,410 ,400 440 6,660 6,870 6,960 7,110 7,210 7,280 7,360 7,360 7,310 7,840 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 2, 1972- Jan. Feb. 5,700 6,180 2.,490 2.,510 8,190 8,690 (4) (4) 2.,488 2, ,542 (4) (4) Mar. 6,620 2 j,520 9,140 ' 2, 5 1 2 (4) 1971 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1972 - Jan. Feb. Mar. 210 230 90 100 70 60 ' 80 20 -40 490 300 480 440 30 -20 -- 50 30 10 — 240 210 90 150 100 70 80 -20 -10 40 -50 530 50 20 10 • 350 500 450 (4) -- : --------- -- 2. 2, 55 -138 •110 110 230 -10 100 60 10 50 268 54 -30 --- ----- --- M a r g i n d e b t , as reported by the N e w Y o r k Stock E x c h a n g e . A l t h o u g h m a r g i n debt u n t i l M a r c h 1968 included loans secured by U.S. g o v e r n m e n t s , the a m o u n t of such loans included is thought to h a v e bee,n small. " B a n k loans to o t h e r s than b r o k e r s and d e a l e r s for p u r c h a s i n g or carryinu —pu- rities o t h e r than U . S . g o v e r n m e n t s . " T h e d i f f e r e n c e b e t w e e n c u s t o m e r s ' net d e b i t b a l a n c e s and customers' net free credit b a l a n c e s , this figure r e p r e s e n t s the n e t -credit extended by brokers and d e a l e r s to the n o n f i n a n c i a l p u b l i c . NOTE: W i t h the e x c e p t i o n of bank loan d a t a , figures are supplied by the New Yo rk S t o c k E x c h a n g e and are end of m o n t h d a t a . B a n k loans are for w e e k l y reporting large c o m m e r c i a l b a n k s . B r o k e r data i n c l u d e s loans- for regulated s e c u r i t i e s ; h.ink data i n c l u d e s loans for the p u r p o s e of p u r c h a s i n g or c a r r y i n g any s e c u r i t y , wh thvr r e g u l a t e d or not. Series discontinued. C h a n g e s in s e r i e s . T A B L E 10: Savings Flows at Nonbank Depositary Intermediaries ($ m i l l i o n s ) DATE MUTUAL SAVINGS BANKS . NET REGULAR DEPOSITS 3 NEW ANNUAL MONEY 2 GROWTH NET RATE 1 FLOW SAVINGS «5c LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL MONEY 2 NET GROWTH FLOW RATE 1 TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW |"" "NET NEW MONEY 2 Not Seasonally Adjusted 1969 1970 1971 2,549 4,517 9,623 1971 - March April May 1,604 801 819 1972 - March g/ April £/ May e/ 1,507 464 680 1971 - November December 659 836 4.0 6.8 13.5 — -- --- -763 936 5,678 4,068 10,965 28,244 955 651 710 4,108 2,211 2,160 773 280 n.a. 4,287 1,780 2,035 3.1 8.1 19.4 -1,003 5,285 20,652 6,617 15,482 37,867 —— 2,627 2,092 2,081 5,712 3,012 2,979 -- -- , 2,532 1,668 n.a. 5,794 2,244 2,715 — 3.4 7.7 17.5 -- -1,766 6,231 26,330 3,582 2,743 2,791 3,305 1,948 n.a. Seasonally Adjusted 1972 - January February March April £ / May e/ 1 2 3 948 861 1,089 820 10.0 12.5 mm mm 14.1 12.6 15.8 11.7 8.3 —— ~—— —— 1,710 2,031 12.1 14.2 4,118 2,955 3,091 2,710 28.4 19.9 20.5 17.7 10.5 1,640 -• — —— —— —— — 2,369 2,867 11.4 13.7 5,066 3,816 4,180 3,530 2.227 23.9 17.6 19.0 15.8 9.9 A n n u a l growth rate for m o n t h l y data is the annualized m o n t h l y p e r c e n t a g e increase in d e p o s i t s . Net N e w M o n e y is n e w d e p o s i t s net of both w i t h d r a w a l s and i n t e r e s t . i)atn for SM,s are lor insured a s s o c i a t i o n s o n l y , which r e p r e s e n t 967„ of industry total resources. R e g u l a r d e p o s i t s at m u t u a l s a v i n g s b a n k s exclude items such as C h r i s t m a s club and certain e s c r o w a c c o u n t s , w h i c h r e p r e s e n t a very small part of total d e p o s i t s . 'SOURCE: N a t i o n a l A s s o c i a t i o n of M u t u a l S a v i n g s R a n k s and Federal H o m e Loan Bank Board. __ --•» — —— -— TABLE 11: Mortgage Commitments at Selected Thrift Institutions DATE TOTAL OUTSTANDING COMMITMENTS ALL MUTUAL ' SAVINGS & SAVINGS LOAN BANKS (N.Y. STATE) ASSOCIATIONS 1 TOTAL 1 NET CHANGE ALL • SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS HANKS (N.Y. STATE) (Billions of Dollars, Sea sonally A^| jus ted) Mar. Apr. May June July Aug, Sept. Oct. Nov. Dec. 12.6 13.7 14.5 15.9 16.2 16.3 16.4 16.3 16.6 16.6 10.1 11.0 11.6 12.8 13.1 13.2 13.2 13.1 13.2 13.1 2.5 2.7 3.0 3.1 3.1 3.1 3.2 3.3 3.4 3.6 Jan. Feb. Mar. Apr. 17.0 18.3 19.5 20.5 13.3 14.2 15.2 16.0 3.7 4.1 4.3 4.5 1.,28 1.,15 ,90 1,, 3 1 ,30 ,12 ,08 ,02 .20 .09 1., 1 1 ,90 ,56 1,,26 ,29 .14 .07 .05 .08 .06 .17 .25 .34 .05 .01 -.01 .14 .07 .12 .15 ,30 .12 .97 .97 .80 .18 .37 .22 i. 3 4 l. 1 9 l. 1 0 .20 Based on data from Federal Home Loan Bank Board and Savings Banks Associations of New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. New 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. 17 TABLE 12: Net Change in Mortgage Holdings 1 FINANCIAL INSTITUTIONS LIFE MUTUAL SAVINGS &| INSURANCE COMMERCIAL SAVINGS LOAN COMPANIES BANKS BANKS ASSOC. j TOTAL INCLUDING FNMA-GNMA TOTAL 23,781 24,074 21,736 41,647 21,273 19,699 16,827 39,259 6,677 / 5,404 2,462 9,940 1972 - Jan. Feb. Mar. Apr. May 2,527 2,811 4,012 n. a. n. a. 2,348 2,574 3,929 n. a. n. a. 700 600 1,000 1,100 1,300 1971 - Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 3,005 3,057 3,300 4,136 4,186 4,168 3,924 3,657 3,647 4,325 2,983 3,113 3,260 3,935 3,878 3,656 3,458 3,267 3,345 4,083 690 685 864 1,219 977 901 902 884 752 826 401 293 318 386 374 400 306 329 ^ 6 5 \#522 1,801 2,082 2,036 2,309 2,455 2,252 2,122 1,977 2,058 2,357 91 53 42 21 72 130 128 77 77 378 1972 - Jan. Feb. Mar. Apr. May 3,123 3,315 4,208 n. a. 2,974 3,065 4,097 n. a. 888 754 1,061 1,084 1,261 272 296 486 390 1,813 2,042 2,571 2,506 2,569 1 -27 -21 n. a. n.a. DATE FXMA-GXMA Not Seasonally Adjusted 1968 1969 1970 1971 1 2,787 2,682 1,845 3,938 9,350 9,561 10,172 24,160 1,453 274 1,776 259 2,531 430 • 2,566r 352 n. a. 2,718 Seasonally Adjusted - 2,459 2,052 .2,348 1,221 2,508 4,375 4,909 2,388 -79 -61 -32 n. a. n. a. 179 237 83 n.a. n. a. ' -56 40 201 308 512 466 390 302 242 149 250 111 n.a. . n. a. 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 87 per cent of the net increase estimated for all holders in 1971. 18 TABLE 13: Net Increases in Mortgage Debt Outstanding 1 Billions of dollars, SAAR TOTAL RESIDENTIAL 3 1- to 4FAMILY MULTIFAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 1967 - I II III IV 16.0 20.8 26.3 27.2 10.3 14.0 18.9 19.7 7.0 10.6 15.1 15.9 3.3 3.4 3.8 3.8 3.9 5.0 4.9 4.7 7.2 8.4 8.8 8.5 1.8 1.8 2.5 2.8 1968 - I II III IV 28.1 26.4 25.8 29.4 19.4 18.2 17.4 20.2 16.2 15.0 13.9 16.3 3.2 3.2 3.5 3.9 6.4 6.0 6.6 7.3 9.5 9.2 10.1 11.2 2.3 2.2 1.8 1.9 1969 - I II III IV 31.8 29.1 26.2 24.9 23.6 21.5 19.0 18.2 19.2 16.8 14.4 13.0 4.4 4.7 4.7 5.3 6.1 5.4 5.4 5.2 10.5 10.1 10.0 10.5 2.2 2.2 1.7 1.4 1970 - I II III iv- 20.6 22.9 29.1 31.3 14.2 16.9 21.8 22.5 9.1 11.5 15.5 16.0 5.1 5.4 . 6.3 6.5 4.8 4.6 5.2 6.7 9.9 9.9 11.5 13.2 1.5 1.5 2.1 2.2 1971 - I II- 37.1 47.8 53.6 53.4 26.6 36.1 40.1 40.1 18.5 26.4 31.4 31.4 8.1 9.7 8.7 8.7, 8-3 9.4 11.2 10.8 . 16.3, 19.1 19.9 19.5 2.2 2.3 2,3 2.5 56.3 42.6 32.4 11.6 21.7 2.1 QUARTER nir. IVr 1972 - Ie 10.1 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 somewnat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. 3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family and multifamily mortgage debt combined. TABLE 14: FNMA Weekly " A u c t i o n " Results | WEEK ENDED Jan. Feb. Mar. Apr. May June COMMITMENTS IN $ MILLIONS ACCEPTED 1-YEAR 6TOTAL TOTAL . 4MONTE MONTH & OVER OFFERED 10 24 136,9 103.6 72.9 54.9 72.9 54.9 —— 7 21 88.7 68.6 63.9 44.8 63.9 44.8 —— 6 20 86.9 202.9 50.6 86.2 50.6 , 86.2 3 17 258.8 347.4 178.5 176.3 178.5 176.2I 1 15 30 364.9 266.3 133.4 336.4 188.2 76.4 336.4 188.2 76.4 12 83.5 48.1 48. 1 7.61 7.61 —— 7.56 7.54 — 7.56 7.60 — 7,63 7.63 -- — — 7.62 -- 7.62 .. — -— -—— -- 6MONTH —— — — 4MONTH 7.61 7.61 — — IMPLICIT YIELD (per cent) 1-YEAR & OVER —— -—— — —— — -- — — NOTE: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments. Average secondary market yield after allowance for commitment tee and required purchase and holding of FNMA stock, assuming prepayment of 15 years for 30-year Government-underwritten mortgages. Yields shown are gross, before deduction of 38 basis points fee paid by investors to servicers. 20 TABLE 15: Private Housing Starts and Permits STARTS DATE - May June July August September October November December • January February March r/ April r/ May j>/ 1 2 SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE TOTAL UNADJUSTED TYPE OF FINANCING FHA VA OTHER BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 8.4 9.2t 9.21 9.4 8.7' 8.1 9.1 7.4 149.4 138.4 141.1 147.0 116.8 133.1 120.1 59.3 1,927 1,849 2,052 2,006 1,900 2,173 1,952 2,292 7.5i 8.0i 10.5> 8.5i 9.4 106.0 117.8 155.7 172.9 n. a. 2,105 2,078 1,928 1,928 1,991 2,046 2,008 2,091 2,219 2,029 2,038 2,228 2,457 1,152 1,150 1,162 1,198 1,172 1,155 1,242 1,347 894 858 929 1,021 857 882 985 1,110 198.5 193.8 194.3 204.5 173.8 179.7 176.4 152.1 40.7 46.1 42.9 45.8 48.3 38.5 47.2 85.4 . 2,487 2,682 2,369 2,101 12,322 1,415 1,325 1,302 1,162 1,329 1,071 1,357 1,067 939 993 150.9 153.6 203.9 210.5 223.8 37.4 27.8 37.7 29.1 n. a. Total starts are Census estimates including farm for both permit-issuing and nou-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 inspectio-n 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 before January 1963 are Census estimates for about 10,000 areas identified as having a local building permit system in 1959. Estimates beginning January 1963 are for approximately 12,000 and beginning January 1967 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. 21 TABLE 16: Mortgage and Bond Yields 1 J FHA MORTGAGES 30-year 2 CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON CONV. & FHA MORTGAGES 5 1 NEW Aaa CORPORATE BONDS 4 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 6 High Low 9.29 8.40 8.60 8.30 -.10 -.74 9.11 7.80 .99 .01 1971 - High Low 7.97 7.32 7.95 7.55 .28 -.19 8.01 7.24 .50 -.36 1971 - Nov. Dec. 7.62 7.59 7.75 7.70 .13 .11 7.19 7.09 .43 .50 1972 - Jan. Feb. Mar. Apr. 7.49 7.46 7.45 7.50 7.60 7.60 7.55 7.60 .11 .14 . 10 .10 7.07 7.16 7.22 7.31 .42 .30 .33 .19 1970 Neither mortgage nor bond yields include allowance for servicing costs which arc much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields > if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the . table. Based on FHA-field-office opinions about average bid prices in the private secondary market for new-home mortgages for immediate delivery. Data shown are for 30-year 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. Based on FHA-field-office opinion on typical contract interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring offices. See note for Table 1. Yield spread equals conventional mortgage rate less FHA secondary market yield. Yield spread equals FHA secondary market yield less new Aaa corporate bond yield. 22 T A B L E 17: Conventional Mortgage Terms DATE NEW HOMES FEES & CONT R A C T CHARGES EFFEC- MATURITY (PER (YEARS) TIVE RATE (PER C E N T ) RATE CENT) 3 2 LOAN/1 PRICE! LOAN RATIOj AMT. (PER! ($000) CENT)I 4 1 EXISTING HOMES LOAN / FEES & CONT R A C T CHARGES EFFEC- MATU- PRICK (PER RITY RATIO RATE TIVE (YEARS) (PER C E N T ) RATE (PER CENT) CENT) 2 3 LOAN AMT, (S000) 1971 7 .36 7,.38 7..51 7,.60 7..67 7..68 7..65 7..62 0 .71 0,.74 0,.90 0,.84 0,.97 0,.97 0,.87 0,.93 7.,62 7..45 7. 3 8 7. 3 8 M a y £ / 7. 3 9 0.,95 1. 02 0. 84 0. 83 0. 84 May June July Aug. Sept. Oct. Nov. Dec. 7..77 26 .1 26 .3 26,.3 26 .2 25,.8 26..4 26..7 26..6 74 0 73,.7 74,.5 73..9 75..3 75..5 75..4 74.,5 26,.7 2 7 .2 27,.1 26..5 25..9 26..3 27..3 26.,5 7.,78 7.,61 7. 52 7. 51 7. 53 26.,5 27. 0 27. 2 27. 2 27. 2 75. 0 76. 5 76. 2 76. 0 76. 1 27. 6 27. 8 28. 2 28. 5 28. 4 7 .47 7 .50 7,. 66 7,.74 7,.83 7..84 7..79 7..51 0..71 0,.74 0..75 0..76 0..78 0..79 0..79 0.,78 7.,45 7. 3 5 7. 3 1 7. 3 0 7. 3 4 0. 8 2 0. 79 0. 77 0. 78 0. 73 7,.33 7 .38 7,.50 7,.58 7,.63 7..62 7,.56 7,.71 7,.76 7..75 7..69 2 4 .0 24 .3 24,.2 24,.5 24..2 24,.1 24..6 73..2 73,.9 74..5 74,.2 74..5 74..2 74..6 23.3 28.3 23.2 23.5 22.5 22.9 23.2 7..64 24..6 74.,6 23.9 7..58 7.,48 7.,44 7. 4 2 7. 4 6 24.,7 25.,4 25. 1 25. 2 25. 1 74. 7 75. 8 75. 6 75. 3 75. 3 24.1 24.8 24.4 24.9 24.4 7,.45 7 .50 7,.63 1972 Jan. Feb. Mar. Apr.r/ 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 c h a r g e s — e x p r e s s e d 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.
@FedFRASER