Full text of H.16 Capital Market Developments : June 28, 1971
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
' wmmA ( L.5.8 Confidential (F.R. .Time 28f - 1971 DECONTROLLED AFTER SIX MOBTHS PITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. INDEX Developments in the Corporate and Municipal Bond Markets Capital Market Yields Capital Market Volume Stock Market Mortgage Market SYMBOLS: e Estimate p Preliminary r n.a. Revised Not available TABLE 1: Yields, Volume and Reception WEEK ENDING: 1971 - May 7 14 21 28 June 4 11 18 25 July 2 WEEK ENDING: 1971 - May June July YIELDS MOODY'S SEASONED NEW ISSUE1 Aaa CORPORATE BOND MARKET ^ VOLUME;2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 7.88 7.93 8.23 8.06 7.43 7.48 7.57 7.66 610 376 441 735 85 85 93 99 n.a. *.-79 7.93 8.05 7.84 7.70 7.66 7.63 7.62 220 355 839 634 92 79 98 76 n.a. n.a. n.a. n.a. 350e n.a. n.a. MOODY'S SEASONED Aaa YIELDS BOND BUYER SEASONED 20 BOND INDEX MUNICIPAL BOND MARKET VOLUME2 PER CENT GROSS SOLD BY END OF WEEK OFFERINGS BONDS SCHEDULED WITHIN 28 DAYS 7 14 21 28 5.65 5.80 5.70 5.70 5.84 5.96 5.96 5.86 280 550 851 534 84 81 86 78 1,505 1,299 966 791 4 11 18 25 5.50 5.60 5.70 5.87 320 429 80 70 806 851 5.70 5.80 6.00 6.23 486 405 73 71 918 1,351 2 n.a. 335 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 DATL: OFFERED AMOUNT (MIL. $) 6/24 6/24 6/24 6/23 6/21 OFFERED 1 10.0 50.0 60.0 40.0 150.0 | RELEXSED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND / ISSUER COUPON YIELD CALL PROTECTION Wise. Nat. Gas Quaker Oats Diamond Shamrock West Penn. Pwr. Michigan Bell Tel. 8.38 7.70 8.20 8.13 7.75 8.25 7.70 8.25 8.00 7.80 A Aa A Aa Aaa 5 yrs 10 yrs 10 yrs. 5 yrs. 5 yrs. ESTIMATED PROPORTION SOLD , 40% 80% 75% 30% 40% CORPORA]E BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT ISSUER COUPON YIELD IN YIELD CALL PROT. PORTION RELEASED NONE MUNICIPALS DATE 1971 - May 28 June 4 11 18 25 622 563 614 656 646 INVENTORIES 1 IN SYNDICATE 199 156 180 226 203 CORPORATES IN SYNDICATE 15 18 73 20 149 N.C. - N o call protection. ' FRASER Digitized for ZT/yazr - - i TABLE 3: High Grade Bond Yields DATE NEW CORPORATE Aaa 1 1969 - High Low 1970 - High Low 1971 - High Low 8.85 6.90 9.30 7.68 8.23 6.76 1971 -May 28 8.60 J une 4 11 18 25 1 7.79 7.93 8.05 7.84 (12/5) (2/21) (6/19) (12/18) (5/21) (1/29) v !i MOODY'S SEASONED CORPORATE Aaa 2 7.84 6.55 8.60 7.48 7.69 7.06 (12/26) (1/12) (7/3) (12/31) (6/4) (2/12) U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES3 6.97 5.96 7.55 6.17 6.51 5.69 (12/26) (1/24) (5/29) (12/18) (6/18) (3/23) BOND BUYER'S SEASONED MUNICIPALS 4 6.90 4.82 7.12 5.33 6.23 5.00 7.66 6.29 5.86 7.69 7.66 7.63 7.62 6; 19 6.32 6.51 6.44 5.70 5.87 6.00 6.23 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) 6 TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS 1 STATE AND LOCAL 2 CORPORATE 1970 1969 1971 1970 1969 January February March 3,115 3,000 6,075 2,636— 1,802 3,539 2.075 2,045 2,098 2,702 1,833 2,107 1,340 1,214 1,555 1,262 987 538 April May June 4,007 3,600e 3,170 3,909 3,389 2,748 2.076 2,530 1,888 2,200e 1,647 996 1,085 1,801 1,110 737 July August September 2,768 2,274 3,518 2,478 1,427 2,427 1,348 1,359 1,758 1,097 808 559 October November December 3,777 4,182 3,980 1,933 2,375 2,532 1,924 1,748 2,190 1,280 886 816 7,977 10,468 8,560 11,939 6,218 7,354 6,332 6,840 4,109 3,728 4,465 5,862 2,787 3,648 2,464 2,982 18,445 27,005 38,944 13,572 19,904 26,744 7,837 12,302 18,164 6,435 8,899 11,881 1971 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 12,190 6,642 Excluding finance companies' 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) & o 1970 - II III IV 1971 - I TOTAL in QUARTER OR MONTH GROSS PROCEEDS BY TYPE OF ISSUE COMMON MEMO: BONDS AND PRIVATELY PFD. ISSUES INCLUDED MFG. PLACED STOCK FOREIGN | CONVERTIBLE 10,468 8,560 11,938 12,190 6,994 5,987 7,827 8,369 V 1,282 914 1,421 1,516 GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS1 2,190 1,659 2,690 2,306 135 83 226 84 710 287 737 824 2,445 2,314 3,169 3,794 2,812 2,714 3,406 3,197 2,162 868 1,346 1,606 3,048 2,663 4,020 3,594 1970 - May 3,909 3,389 , June 2,768 July 2,274 Aug. Sept. 3,518 Oct. 3,777 4,181 1 Nov. Dec. 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 e/Apr. e/May 4,007 3,600 2,118 2,200 473 500 1,415 I 900 | 113 n.a. 384 275 1,115 1,050 1,265 ^ 490 269 385 1,358 1,675 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. TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 ISSUER Economics Lab AMOUNT (MILLIONS OF DOLLARS) TYPE 2 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.i 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. Conv. Sub. 20.0 Debs. 1st. Mtg 27\0 S.F. deb 100.0 Conv. Sub. debs. 60.0 Com. Stk 55.0 Com. Stk 16.6 Com. 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 16.5 Com. Stk 100.0 1st. Mtg 60.0 1st. Mtg. Conv. debs.. 100.0 100.0 S.F. Debs. Notes(7 yrs) 50.0 20.0 Debs. Debs. 17.5 40.0 Conv. Debs 30.0 Debs. 100.0 1st. Mtg. S.F. debs. 50.0 Conv. debs . 125.0 Conv. debs . 100.0 30.0 Pref. Stk. 18.9 Com . Stk. 15.1 Com. Stk. Com. Stk. 15.1 Com. Stk. 78.5 MATURITY June 1 thru Jtine 25 COUPON OFFERRATE OR NET INTERING EST COST YIELD MOODY'< RATING 1991 2001 1996 5.13 7.75 8.20 5.13 7.73 8.20 Baa Aa Aaa 1991 5.65 5.65 B -- —— —- —W —— — —— mmmt ' * —w — mm — m. 7.50 8.00 7.50 8.25 7.45 8.05 7.58 8.25 A A Aaa A 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 8.10 8.20 5.00 7.38 7.38 7.95 9.00 4.63 8.00 8.17 9.38 7.50 4.75 Aa A -- -- -- —— -- -- —— • — • 1977 1991 1996 1996 .. . — -- ! 2001 2001 1996 1996 1978 1979 1996 1996 1996 2001 1996 1996 -- —— ~~- —— -— A A -- Baa —— B Aa Baa Ba Baa —— — T A B L E 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) } ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) Com. Stk. 33.4 MATURITY COUPON RATE OR NET INTEREST COST JUlttfiL-L-J OFFERING YIELD MOODY1S RATING Corporates Carolina Power & Light Co. Merrill Lynch, Pierce, Fenner, Smith Inc. USF Investor Baltimore Gas & 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 Com. Stk. Benf. Int. Com. Stk. Com. Stk. Conv. debs. Bds. Cap. Notes S.F. debs. 1st. Mtg. S.F. debs. Conv. debs. Gtd. Notes 56.0 50.0 71.3 18.8 15.0 150.0 25.0 50.0 40.0 60.0 200; 0 50.0 __ —— -- —— 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 Aaa Aa Aa A — / TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY 10 COUPON 1 RATE OR | OFFKRNET INTERIN<; EST COST J YIlvLL) 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 Trey Sch. Dist., 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 ' 12. 0 Rev. G. 0. ) 75.0 26. 0 Rev. 6. 0 Rev. 10. 0 G.O. 10.3 Rev. 100. 0 G. 0» G • 0. 24.6 Rev. 13.,6 Rev. 90.0 63,.8 Rev. G.O. & Rev. 12,.0 3,,2 Rev. Rev. 7.,5 Rev. 49,.0 Rev. 14,.8 23,.8 G.O. Rev. 40. 0 Ohio, State Bergen Co., N.J. 10.,9 G.O. Coastal Ind. Wtr. Auth. Tex. 25.,0 Rev. Long Beach, N.Y. City S/D 10.,2 G • 0. Fla. Turnpike Rev. 115,.0 Dade Co. Expressway 37,,0 G.O. West Virginia 45,,0 G.O. Binghamton, N.Y. 12 .0 G.O. Ga. Highway Auth. I W lev. -Rent .0 20, Burlington, Mass. G.O. 14,.9 1975-2010 1972-96 2011 1972-91 1973-91 1972-95 1972-96 1975-2000 1974-93 1972-91 1972-2001 1972-91 1975-86 1998 2003 1975-87 1972-96 6.92 4.92 6.92 3.00-5.,90 -- — 1976-2011 1972-91 2007 1971-97 2010 1973-2000 1972-96 1972-95 1972-94 1972-1990 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 Aa —6138 4 00-6.90 Baa —— 7100 3.50-6 .25 — — 3.40-6 .25 A-l 3.60-6 .10 A-l 3.30-6 .00 Aaa 4.00-6 .30 A California, State of 1976-1991 5.37 4.30-6 .30 G.O. 100 .0 \ A ' Aaa A A 4.00-6,.75 6.86 4.25-7.,10 — — — 3.00-6,.00 Aa 3.00-5,.90 Aaa 4.93 6.23 A 9f) A 40 Baa 7:7Z» 7.74 3.40-6 .30 Aa 5.08 6.56 3.50-6 .80 A 3.60-5 .30 Aa 4.94 -4.75-6 .50 - — 7.00 7.00 7.36 7.20 Baa 4.75-6.,90 Baa 3.60-6 .20 Baa-1 6.04 — Aa TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 TYPE 2 ISSUER AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTER EST COST June 1 thru June 25. 1971 1 ! OFFER- MOODY'S RATING 1 Ii.(1 .1 YIELD State and Local (cont'd^ 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 ( Rev. Rev. G.O. G.O. G.O. Rev. Rev. Rev. G.O. 16.,4 59.,1 29.,7 8.,0 26.,6 5.,0 4.,0 6.,0 32.,8 -- 1975-90 2009 1972-2001 1972-91 1972-91 1973-84 1990 1996 1972-91 50., 0 200.,0. 300.,0 35.,6 211.,7 6.,74 6.,74 6.,06 5.,73 5.,73 7.,30 5.,24 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 A A • A-l Aa A-l Baa Baa Baa Aa 1977 1974 8.,85 6..95 6.35 8.,85 6.,95 6.35 Aa 1989 1974 7.,85 6.,85 7.,85 6.,85 Other Falconbridge Nickel FHLB FHLB \ Sun Shipbuildings & Dry Dock Co. FICB Farmers Home Bds. Bds. Gov't Ins. Merch. Debs. -- Notes 250.2 1981 7,.88 ' 7,,88 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; Kev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rvv.-S.T., revenue bonds secured^ by revenue from specific taxes only; Rev.-Kent., revenue bonds secured solely by lease payments. Includes foreign government and International Bank for Reconstruction and Development issues and non-qiiaranteed issues by Federal Agencies. TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) Corporates - 25.0 Debs. First Mtge. Investors 25.0 Debs. American Century Mtg. Inv. 25.0 International Multifoods Corp Debs. Equip Trst. Ctfs. 25.0 ACF Industries Inc. 100.0 Sr. Notes Commercial Credit Co. 35.0 ITT World Communications Inc. Debs. 50.0 S.F. debs. Raytheon Co. 50.0 Debs. Lomas & Nettleton Fin. Corp. 50.0 Com. Stk. Cleveland Elec. 111. 25.0 1st. Mtg. Gen'l Waterworks Corp. 30.0 Debs. Guardian Mtge. Investor 25.0 Debs. Valu Bend Credit Corp. 20.0 Notes Monumental Corp. 60.0 Debs. *Interlake Inc. 25.0 Bds. Beneficial Corp. 50.0 Bds. Beneficial Corp. 20.0 Notes Microdot Inc. 20.0 Central Tel. & Utility Corp. 1st. Mtg. 40.0 Bds. Gen'l Tel. Co. of the S.E. 45.0 1st. Mtg. Dayton Pwr. & Lt. Co. 20.0 Pref. stk. Dayton Pwr. & Lt. Co. 115.0 Com. Stk. American Airlines 50.0 Debs. GAC Properties Credit Inc. 20.0 • 1st. Mtg. Pub. Serv. Co. of N. Mex. 15.0 Debs. Equimark Corp. 20.0 Conv. debs. Bank of Calif. 25.0 Debs. Genstar Ltd. Sr. debs, w/w 30.0 Carrier Corp. 120.0 1st. Mtg. Consumer Pwr. Co. 15.0 1st. Mtg. Wash. Gas Lt. Co. 30.0 1st. Mtg. Wise. Pwr. & Lt. Co. Conv. Pref. 1,375.0 *AT & T 150.0 Bds. New York Tel. Co. 15.0 1st. Mtg. *Indiana Gas Co. 85.0 Bds. * Alabama Pwr. Co. 15.0 Debs. Diamond State Tel. Co. Notes (7 yrs) 60.0 *The Continental Can Co. 50.0 Debs. First Wisconsin Bkshares 100.0 Debs. Ind. Bell Tel. Co. Southwestern Bell Tel. Debs. 200.0 As of June 25, 1971 APPROXIMATE DATE OF OFFERING June 28 June 29 June 29 June 29 June 29 June 29 June 30 June 30 June June i ! June June June June June June June June June June June June June June June June June June June July 7 July 7 July 12 (rights expire) July 13 July 15 July 21 July 21 July July Aug. 3 Sept. 13 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 ISSUER State and Local ' Kentucky, State of G.O. Delaware 6.0. Newark, N . J . G.O. |Tucson, Ariz. Rev. Mecklenburg Co., N.C. G.O. 'Lakeland Fla. Rev. jJackson Co., Mo. G.O. iPhiladelphia, Pa. G.O. iPuerto Rico Wtr. Resources Rev. -San Bernardino, Calif. Redevp. A •' Agency Bds. Oakland Co., Mich. G.O. Cleveland City Sch. Dist. G.O. aw York G.O. ort of Oakland, Calif. Rev. I-ssachusetts G.O. \,a. Stadium & Exp. Dist. Rev. ?enna State of Bds. 'JLachua Co., Fla. Rev. Dklahoma City G.O. Chicago Bldg. Comm. Rev. ,3anta Ana Unified S/D, Calif. Bds. Houston ISD, Texas G.O. •. Y. State Dorm. Authority Rev. Texas G.O. -Sast Bay MUD, CAL G.O. . u. A. Dept. of Wtr. & Pwr. Rev. j.A. DWAP Rev. i TYPE AMOUNT (MILLIONS OF DOLLARS) 30.0 40.0 13.0 10.0 10.0 10.0 28.8 25.0 60.0 13.5 13.3 16.0 282.1 20.0 125.0 113.0 70.0 12.9 14.1 55.0 15.0 10.0 26.9 12.5 12.0 39.0 39.0 APPROXIMATE DATE OF OFFERING June June June June June June June June June 29 29 29 29 29 30 30 30 30 June June June July 7 July 7 July 7 July 8 July 8 July 13 July 13 July 13 July 13 July 13 July 13 July 15 Aug. 10 Aug. 11 Aug. 11 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. 1971 Table 8 STOCK PRICES AND VOLUME STOCK PRICES1- TRADING VOLUME 2 ' DATE NYSE INDEX 3 - D J . INDUSTRIALS AMEX * AMEX NYSE - High Low 50.32 (5/14) 49.31 (7/29) 968.85 (5/14) 32.91 769.93 (12/17]25.02 (1/3) 16.5 (7/29) 8.6 (3/29) 8.0 (8/29) 3.6 - High Low 52.36 (1/5) 37.69 (5/26) 842.00 (12/29)27.02 631.16 (5/26) 19.36 (1/8) 18.5 (5/27) 7.8 (12/4) (8/14) 7.1 1.8 (1/2) (8/14) - High Low 57.76 (4/28) 49.73 (1/4) 950.82 (4/28) 26.68 830.57 (1/4) 22.72 (4/28) 22.1 (1/4) 14.9 (2/12) (4/2) 6.7 3.3 (2/12) (6/11) - May 56.67 56.35 55.59 54.69 936.97 936.06 921.87 907.81 26.24 26.15 25.87 25.71 17.2 16.0 14.2 13.2 4.7 4.8 4.1 3.7 55.95 55.80 54.63 54.10 922.15 916.47 889.16 876.68 26.07 25.90 25.38 25.18 15.7 13.3 13.7r 13.3 4.3 3.3 3.4 3.2 7 14 21 28 June 4 11 18 . 25 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 Days/ D Through: From Week *y January 3, 19fc9 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 (1/31) (11/21) 15 TABLE 9: Security Credit CUSTOMERS1 NET DEBIT BALANCES CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS1 1 BANKS 2 1 TOTAL END OF PERIOD Outstanding: NET CREDIT CUSTOMERS1 NET EXTENDED BY BROKERS AND FREE CREDIT DEALERS 3 BALANCES 2,222 2,009 (5)2,180 2,083 2,236 2,163 2,197 2,286 3,211 3,272 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) 2,452 2,743 2,798 2,660 2,550 (4) (4) (4) (4) (4) -552 -152 - 26 -213 171 97 153 - 73 34 89 -513 - 61 .1970 - May June July Aug. Sept. Oct. Nov. Dec. .4,160 3,860 3,800 .3,810 3,920 .4,010 .4,010 .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) .1971 - Jan. Feb. .Mar. Apr. •May ,4,000 4,090 4,300 4,530 .4,620 2,300 2,330 2,360 2,340 2,340 6,300 6,420 6,660 6,870 6,960 - 40 -240 -300 - 60 20 140 30 50 30 Change in Outstanding: 1970 - M a y June July Aug. Sept. Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May 1 2 3 -200 -300 - 60 10 110 90 - - 20 - 30 90 210 230 90 — — - 10 30 - 60 50 10 - 30 30 30 - 20 - 60 120 240 210 90 I - - - - - - - - - - - - - - - - - - 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) ' • \ \ DATE MUTUAL SAVINGS BANKS S^STfNGS . & LOAN ASSOCIATIONS REGULAR DEPOSITS 3 NET SHARE CAPITAL NET ANNUAL NEW ANNUAL NEW 2 GROWTH NET MONEY NET GROWTH MONEY2 FLOW RATE 1 FLOW RATE 1 TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW NET NEW MONEY 2 Not Seasonally Adjusted 1968 1969 1970 1970 - Mar. Apr. May 1971 - Mar. Apr. r/ May £/ 4,203 2,549 4,466 510 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 1,655 207 753 955 651 680 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 6.0 3.2 8.2 -— — *w —— -- 2,738 -1,003 5,295 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 6.3 3.4 7.7 . —«. -- — 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 —— — -— -- -- «... —— —— --- 2,536 14.5 —— 4,504 3,411 4,663 4,173 2,774 25.1 18.5 24.9 21.8 14.2 mm mm 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 -- TABLE 11: Mortgage Commitments at Selected Thrift Institutions OUTSTANDING COMMITMENTS NET CHANGE ALL MUTUAL ALL SAVINGS & SAVINGS TOTAL SAVINGS & BANKS LOAN LOAN (N.Y. STATE) ASSOCIATIONS ASSOCIATIONS (Billions of Dollars, Se asonally Adjusted) 1/ DATE Apr. May June July 7.8 8.0 8.2 8.6 , X 17 1 MUTUAL SAVINGS BANKS (N.Y. STATE) 5.4 5.8 6.1 6.5 2.4 2.2 2.1 2.0 -.08 .20 .17 .37 .21 .34 .26 .41 -.13 -.14 -.09 -.04 Aug. Sept. Oct. Nov. Dec. 9.8 8.9 9.3 9.6 10.1 6.8 7.1 7.5 7.8 8.1 2.0 1,8 1.8 1.8 2.0 .21 .25 .30 .35 .51 .29 .36 .37 .34 .28 -.08 -.11 -.07 .01 .23 Jan. Feb. Mar. April 10.4 11,2 12.6 13.8 8.3 8.9 10.1 11.1 2.1 2,3 2.5 2.8 .25 .80 1.36 1.28 .20 .60 1.16 .99 05 .20 .20 .29 r 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. Alt 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. \ 18 TABLE 12: Net Change in Mortgage Holdings 1 FINANCIAL INSTITUTIONS LIFE MUTUAL SAVINGS & INSURANCE COMMERCIAL SAVINGS LOAN COMPANIES BANKS BANKS ASSOC. TOTAL INCLUDING FNMA-GNMA Not Seasonally Adjusted 20,016 23,781 24,189 21,822 18,219 21,273— 19,814 16,913 1,154 1,425 1,621 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 4,909 625 948 1,243 4y 125 187 153 160 144 198 486 723 225 177 189 529 477 378 2,690 2,690 2,909 500 500 300 346 255 1,765 2,134 79 20 0 1,351 1,485 1,749 2,083 1,817 2,091 2,074 2,187 2,604 1,860 1,997 2,888 844 1,050 1,281 1,575 1,409 1,727 1,754 1,958 2,504 1,893 . 2,084 76 65 81 165 168 228 195 224 312 383 345 195 199 222 213 83 15.1 200 131 232 24 97 507 435 468 508 408 364 320 229 100 -33 -87 Seasonally Adjusted m 85 188 155 201 142 175 245 170 176 256 225 217 385 631 777 1,055 983 1,103 1,143 1,289 1,704 1,261 1,425 W -8 240 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 84 per cent of the net increase estimated for all holders in 1970. 19 TABLE 13: Net Increases in Mortgage Debt Outstanding Billions of dollars, SAAR QUARTER TOTAL RESIDENTIAL3 1- to 4- MULTIFAMILY FAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 8.2 6.0 2.2 1.8 1966 - II IV 18.6 15.1 10.9 9.1 8.3 7.0 2.6 2.1 5.5 4.1 1967 - I II III IV 15.9 20.7 26.6 27.3 10.3 13.9 19.2 19.8 7.0 10.5 15.3 16.0 3.3 3.4 3.9 3.8 3.9 5.0 4.9 4.8 7.3 8.4 8.8 8.4 1.8 1.8 2.5 2.8 1968 - I II III IV 27.7 26.2 26.0 29.6 19.0 18.2 17.7 20.2 15.8 15.0 14.1 16.4 3.1 3.2 3.4 3.8 6.4 5.9 6.5 7.5 9.4 9.2 10.2 11.1 2.3 2.2 1.8 1.8 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 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 ' 1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute- of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolation* and extrapolations, where required, estimated mainly by Federal Reserve. / 2 May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. 3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4 - family and multifamily mortgage debt combined. TABLE 14: FNMA "Auction" Results WEEK ENDED 20 COMMITMENTS IN $ MILLIONS IMPLICIT YIELD2(per cent) ACCEPTED 1-YEARN 90901-YEAR 1 TOTAL 6TOTAL 6& OVER OFFERED M0NTH & OVER DAY DAY MONTH Jan. 25 44.6 35.5 -- 7.83 7.96 8 23.4 23.3 9.9 10.6 25.6 Feb. 12.7 -- 7.67 7.67 Mar. 1 15 29 186.0 193.5 122.5 51.8 74.0 66.9 15.2 17.9 36.7 29.3 41.2 26.3 7.3 14.9 3.9 7.43 7.33 7.32 7.43 7.45 7.44 7.56 7.55 7.54 Apr. 12 26 126.9 687.2 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 — 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 14 322.4 664.4 1^6.6 77.1 191.2 133.7 57.8 47.3 11.6 10.2 8.05 7.91 8.18 8.15 8.16 8.22 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 basic points fee paid by investors z to servicers. • • 21 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. r / May £_/ 1,725 1,754 1,959 1,899 1,931 946 985 1,048 1,090 1,098 779 769 911 809 833 110.6 102.2 167.9 199.7 194.2 32.2 4.6 27.3 4.7 33.4 6.9 44.6 -8.4 40.7 8.3 72.8 68.4 127.6 146.7 145.2 1,635 1,563 1,627 1,638 1,870 1 2 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 insured 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. TABLE 16: Mortgage and Bond Yields DATE FHA MORTGAGES 2 30-year 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 .28 .18 -.10 7.24 7.28 7.46 7.57 8.01 n.a. n. a. -.14 .02 .36 1971 - Jan. 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-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. 3 Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring officecities. 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.r/ Apr.r/ Mayg/ NEW HOMES CON- FEES & TRACT CHARGES EFFEC- MATURITY RATE (PER TIVE (YEARS) (PER CENT) RATE CENT) 2 3 1 EXISTING HOMES CON- FEES & LOAN/ LOAN/ TRACT CHARGES EFFEC- MATU- PRICE PRICE LOAN RATIO AMT. (PER RATE RITY RATIO TIVE (PER ($000) (PER CENT) RATE (YEARS) (PER CENT) CENT) CENT) 2 4 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 70.3 23 .0 71.5 23 .1 71.5 23 1 71.5 22.,8 71.7 22.,8 71.5 22..7 71.5 23.,3 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 72.5 24. 0 73.1 24. 1 73.5 24.2 73.6 23. 9 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.
@FedFRASER