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DECONTROLLED AFTER SIX M O M S

COEEi-p.'
L . 5 . 8 Confidential (F.R.)

March 19, 1973

^

CAPITAL
MARKET
DEVELOPMENTS




r -

INDEX
Developments in the Corporate and Municipal Bond Markets
Capital Market Yields
Capital Market Volume
Stock Market
Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r

Revised

n.a.

Not available




TABLE 1: Yields, Volume and Reception

WEEK ENDING:

1973 - Feb.

2
9
16
23

Mar.

2
9
16
23

WEEK ENDING:

1973 - Feb.

Mar.

YIELDS
MOODY'S
SEASONED
NEW ISSUE '
Aaa
7.38
7.20
7.22
7.46
7.34
7.23
7.22
—
——

7.52

7.25
7.27
7.29
n.a.

YIELDS
MOODY'S
BOND BUYER
SEASONED
SEASONED 20
Aaa
BOND INDEX

CORPORATE BOND MARKET
VOLUME;2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
n.a.
179
99
245
99
n.a.
n.a.
234
75
n.a.
99
. 70
20
234
275e
525e

100
88
84

MUNICIPAL BOND MARKET
1
,
VOLUME 2
PER CENT
GROSS
SOLD BY END
OF WEEK
OFFERINGS

2
9
16
23

5.00
5.05
4.85
4.90

5.16
5.16
5.06
5.13

451
493
307
277

2
9
16
23

5.00
5.05
5.10
n.a.

5.22
5.27
5.34
n.a.

366
483
631
673e

n.a.
n.a.
n.a.
n.a.

BONDS SCHEDULED
WITHIN 28 DAYS

83
83
85
60
77
78
82
n.a.

575
586
712
882
1,552
1*419
1,344
n.a.

1 Derived by adjusting to a Aaa basis, new issues of publiclv-offe.red 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




I

TABLE 2: Details on Inventories
DATE
OFFERED

•

3/13
3/15
3/15
3/15

OFFERED

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND
ISSUER
COUPON
YIELD CALL PROTECTION

AMOUNT'
(MIL. $)
45.0
30.0
75.0
25.0

•

DATE
| RELEXSED

Lone Star
Trailmobile Finance
Northwest Bancorp
GTE of SE

AMOUNT

DATE
1973 - Feb.

16
23

Mar.

2
9
16

7.65
7 7/8
7 3/4
7 3/4

ISSUER

COUPON

INVENTORIES
MUNICIPALS
BLUE LIST
1
IN SYNDICATE
839r
112
814
155
789
746r
779

104
126
142

7.65
7.95
7.75
7.75

A
——

A

ORIGINAL
YIELD

5
10
10
5

ESTIMATED PROPORTION SOLD

yrs
yrs
yrs
yrs

90%
50%
75%
80%

INCREASE RATING AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED

1

CORPORATES
IN SYNDICATE
175
128
0
27
44

N.C. - No call protection.
1

All fiRurus in millions of dollars. Blue List: is daily average for week ended Friday,except
of threw days endrd Wednesday. ' All other figures are as of Friday.

Digitized for vhich i s daily average
FRASER


for latest w e k

T A B L E 3: High Grade Bond Yields

NEW
CORPORATE
Aaa 1

DATE

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

1970 - High
Low

9.43 (6/19)
7.72 (12/11)

8.60 (7/3)
7.48 (12/21)

7.55 (5/29)
6.17 (12/18)

7.12 (5/29)
5.33 (12/11)

1971 - High
Low

8.26 (7/30)
7.02 (2/5)

7.71 (8/12)
7.06 (2/12)

6.51 (6/18)
5.69 (3/23)

6.23 (6/23)
4.97 (10/21)

1972 - High
Low

7.60 (4/21)
6.99 (11/24)

7.36 (4/28)
7.05 (12/8)

6.19 (4/14)
5.74 (11/17)

5.54 (4/13)
4.96 (10/21)

7.46
7.34

7.22
7.23
7.22

6.89
6.85
6.88

5.16
5.06
5.13

7.25
7.27
7.29

6.90
6.91
6.93

5.22

Feb.

9
16
23

Mar.

2 ,
9
16

1

--

__

I

——
7.52

5.27
5.34

N e w 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.




T A B L E 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
'CORPORATE

PERIOD
1973

1

1972

1971

3,205
3,369
3,229

3,115
3,000
6,075

April
May
June

3,275
3,598
4,341

July
August
September
October
November
December

January
February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

1
2

2,475e
2,175e

STATE AND LOCAL

|
1973

2

1972

1971

1,776
2,005
2,239

2,732
1,851
2,258

4,042
3,300
4,375

1,989
2,017
2,270

1,891
2,167
2,013

3,582
2,893
2,720

4,147
2,532
3,768

1,805
1,966
1,726

1,989
1,903
2,098

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

l,810e
1,410e

Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.




J

•

1
|

.

TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND
BONDS
MEMO:
PUBLICLY 1 PRIVATELY PFD.
ISSUES INCLUDED
STOCK
OFFERED I PLACED
FOREIGN | CONVERTIBLE

OUARTHR
OR
MONTH

TOTAL

1972 - I
II
III
IV

9,805
11,214
9,195
10,564

5,361
4,634
4,192
4,158

1 593
2 781
1 867
3 ,147

1972 - Jan.
Feb.
Mar.

3,205
3,369
3,229

1,767
1,907
1,677

Apr.
May
June

3,275
3,598
4,341

July
Aug.
Sept.
Oct.
Nov.
Dec.
1973 - Jan.—
Feb.S.

2,
3,
3,
3,

GROSS PROCEEDS BY
TYPE OF ISSUER

MFG.

PUBLIC
UTILITY

OTHER
ISSUERS 1

851
798
136
258

74
245
57
245

511
449
836
428

1 =5 2 5
,
2., 1 0 9
1., 6 2 9
1,, 3 9 8

2,261
3,495
2,680
2,934

1.,476
1,, 3 6 9
856
1:, 0 7 9

4,541
4,240
4,030
5,151

604
412
577

834
1,, 0 4 1
976

59
12
3

195
83
233

392
529
604

533
988
740

752
498
227

1,529
1,354
1,658

1,622
1,676
1,336

789
744
1,218

864
L ,148
1,, 7 8 6

15
100
130

92
226
131

581
761
767

1,219
738
1,538

178
391
800

1,297
1,708
1,235

3,582
2,893
2,720

1,807
1,523
863

657
421
789

1;, 1 1 8
948
1., 0 7 0

3
17
37

450
183
203

574
452
603

798
635
1,247

586
237
33

1,624
1,568
838

3,791
3,377
3,396

1,773
1,361
1,024

564
982
1,601

1 ,454
1 ,034
770

28
124
93

162
171
95

383
426
589

1,280
794
860

371
658
50

1,757
1,499
1,895

2,475
2,175

1,000
625

700
700

775
850

75

375

1,040

30

1,030

10

250

850

100

975

n.a.
n.a.

_
1

COMMUNICATIONS

Other issuers arc 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 Mew Capital
(Other than U.S. Treasury) 1
M a r c h 1 through March

TYPE 2

ISSUER

Pacific Gas & Elec

\

\

Ohio Edison Co
Greater Jersey Bancorp
First City Bancorp of Texas
Massey-Ferguson Credit Corp
Western Union Telegraph
Jersey Central Power & Light
Harris Bankcorp
Colwell Mortgage Trust
Lone Star Gas
B.F. Saul R.E. Investment Trust
Trailmobile Finance Co.
General Tele Co. of Southeast
Northwest Bancorp
Diversified Mortgage Investors
Texas Eastern Trans. Corp.
Middle South Util.
Public Serv. E & G




Com stk
(rts)
Pref stk
Bonds
Bonds
Bonds
Debs
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Notes
Com stk
Com stk
Pref s tk

AMOUNT
(MILLIONS
OF
DOLLARS)

125.0
35.4
20.0
40.0
20.0
60.0
30.0
50.0
25.0
45.0
25.0
30.0
25.0
75.0
25.0
81.8
88.5
60.5

MATURITY

—
--

1998
1998
1993
1998
1998
1980
1980
1998
1980
1993
2003
2003
1985 •

COUPON
RATE OR
NET INTEREST COST

--

7.36
7.75
7 5.8
8.00
8.10
8 3/8
7.20
8.20
7.65
8 1.2
" 7 7/8
7.75
7 3/4
8.25

OFFERING
YIELD

—

7.29
7.84
7.65
8.00
8.10
8.23
7.20
8.20
7.65
8.50
7.95
7.75
7.75
8.25

MOODY'S
RATING

-. —

Baa
Ba
--

A
-—

A
--

-—

7.70

7.64

--

16 1973

T A B L E 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1
^
^
!

ISSUER
University of Kentucky
Vermont
St. Paul Ind. Sch. Dist & 625,
Minn.
Hempstead, N.Y.
Huron Valley Sch Dist, Mich
Pasco Co-Wide Sch Dist, Fla
Maryland, State
Mass Home Finance Agency
Miami, Fla.
Kenton, Co. Airport Bd Ky.
San Antonio, Tex
Somerset Co., N.J.
Chicago Park Dist., 111
Washoe Co S/D, Nev.
Washington
Penna Higher Ed Fac. Auth
Montgomery Co. Md.
Henderson, Ky.
Henderson, Ky.
M a s s Health & Educational
Fac. A.uth
Mass Health & Educational
Fac. Auth
Mass Health & Educational
Fac1. Auth
New York State
Pittsburgh, Pa.




TYPE 2
Rev-ref
G.O.

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

March
COUPON
RATE OR
NET INTEREST COST

1 through March
1
|
!
I

OI'FKRr;;c
Y

1

16 1973

MOODY'S
RATING

1)

I ^ _

31.0
30.0

1982-1999
1974-1992

5.74
4.85

4.90-5. 70
3.90-5. 15

A
Aa

G.O.
26.7
G.O.
13.5
G.O.
17.0
G.O.
15.9
G.O.
100,0
Rev.
43.4
G.O.
28.4
Airport rev 22.0
Rev.
14.0
G.O.
10.1
Rev.
30.0
G.O.
10.0
Ref.
72.2

1976-1991
1974-1999
1974 2002
1974-2002
1976-1988
1974-2013
1974-1997
1975-2002
1974-1994
1974-1993

5.00

Aa
A
Baa
Baa
Aaa
A
A-l
Baa
Aa

5.04

4.00-5. 20
4.00-5. 50
3.90-5. 60
3.85-5. 90
4.35-5. 00
4.00-5. 70
4.00-5. 70
4.30-6. 00
3.80-5. 15
4.00-5. 20

1975-1993
1974-1988
1974-2003

5.61
5,34
5.?0

4.40-5,.70
4.20-5,.40
4.00-5,.55

A-l
A
Aa

Rev.
G.O.
Rev.
Rev.

33.7
25.0
50.2
32.3

1974-2011
1974-1993
2003
1975-1991

5.73
4.82
5.70

4.25-5,.90
3.90-5,.10
5.70
4.25-5 .50

Baa
Aaa

Rev.

5.7

Rev.

9.7

1977-1987

-—

4.60-5 .40

A-l

Rev.
G.O.
G.O.

13.4
139.5
14.0

2006
1974-2003
1975-1993

5.75
5.09
5.18

5.75
4.00-5 .25
4.10-5 .35

A-l
Aa
A-l

1993

--

5.44
5.55
4.74
——
— «*
-——

——

5.60 --

5.60

—-

;

--

A
A-l

T A B L E 6:

Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1
M a r c h 1 through M a r c h
COUPON
R A T E OR
N E T INTEREST C O S T

AMOUNT
f MIT,LIONS
OF
DOLLARS)
King Co, Wash
Dallas, Texas

G.O.
Rev.

F a r m e r s Home A d m i n .
F a r m e r s Home A d m i n .

Notes
Notes

27.9
28.0

300.2
200.9

1975-2013
1974-1993

\5.45
5.03

1978
1988

7.20
7.50

16, 1973
MOODY'S
RATING

4.30-5.60
4.00-5.50

7.20
7.58

lights offering.
Includes c o r p o r a t e and other security o f f e r i n g s of $15 million and over;
SLate and local security offerings of $10 m i l l i o n and over.
>bl ig.
In case of State and local government s e c u r i t i e s , G.O. denotes
'<e v. - Lit. , revenue obligations secured only by income from publ
Rev. -Q. -lit . , revenue bonds secured only by income from quasi-u t i 1 i t i es ;
S .T. ,
revenue bonds secured by revenue from specific taxes only; Rev -Kent.,
bonds secured solely by lease payments.
Includes foreign government and International Bank for Reconst rue Lion and
Development issues and non-quaranteed issues by Federal Agenci




A-l
Aa

T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1

ISSUER

Northern Indiana Public Serv.
• Southern Bell Tel & Tel Co
Walter Kidde & Co
Baltimore Gas & Electric
: Texas Eastern Transmission
Indianapolis Power & Light
; ACF Industries, Inc.
Niagara Mohawk Power Corp
Indianapolis P & L
I American Tel & Tel Co
f W a l t e r E. Heller & Co
Walter E. Heller & Co
Texas Utilities
American Electric Power Co
Portland G & E
Portland General Elect
Great American Mortgage Invest
First Continental REIT
Riviana Foods Inc
Excel Investment Corp
: NJB Prime Investors
Petrolane Inc.
Louisville G & E
Investors Realty Trust
Cabot, Cabot & Forbes Land Trus
Connecticut Light & Power
Metropolitan Ed
* Philadelphia Electric
Tenneco
Wickes Corp
*Union Commerce Corp
Continential Illinois Corp
Arrow Investment Ltd




TYPE

Pref stk
Bonds
Debs
Com stk
Bonds
Bonds
Bonds
Com stk
Com stk
Pref stk
Sr Debs
Debs
Com stk
Com stk
Pref stk
Bonds
Bonds
Bene int
Com stk
Com stk
Bonds
Com stk
Pref stk .
Bonds
Bonds
1st mtg
Pref stk
Com stk
Bonds
Bonds
Bonds
Bonds
Bene int

AMOUNT
(MILLIONS
OF
DOLLARS)
30 .0
350 .0
65 .0
45 .0
60 .0
30 .0
15 .0
52 .5
20 .0
500 ,0
40,.0
20,
.0
87,.5
184,.5
.0
20,
,0
.35,
25.
,0
15,,5
15.
,5
20.,0
25. 0
35. 4
21. 5
15. 0
25. 0
,
50.0
25. 0
48. 4
100. 0
50. 0
20. 0
100. 0
20. 0

APPROXIMATE DATE
. OF OFFERING

March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
April
April
April
April
April
April
April
April
April
INDEF
INDEF

19
20
20
21
22
22
22
22
22
27
27
27
27
28
28
28
29

3
3
4
5
12
17

%
%

12
T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)
o f M a r c h
I 6 ,

ISSUER

•

TYPE

State and Local
Colorado Springs S/D 11 El
Paso Co, Colo.
Tucson, Ariz
Baltimore, Md.
West Virginia
California
Florida State Bd. of Ed.
El Pasco Co. S/D 11 Cal.,
HUD
Santa Clara Co. Fac. Corp, Cal.
, Puerto Rico Wtr Resources Auth.
j Washington
j San Francisco, Cal.
j South Carolina
j Penna, State of
Jordan S/D Utah
Maine
Los Angeles Dept. of Airport
Pensacola, Fla.
Prince Georges' Co, Md.

G.O.
Rev.
G.O.
G.O.
Rev.
Rev.
G.O.
Bonds
G.O.
Rev.
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Rev.
Rev.
Poll cont.
Rev

AMOUNT
(MILLIONS
OF
DOLLARS)
14.9
10.0
30.4
40.0
10.0
30.0
14.9
319.5
23.0
75.0
10.0
35.8
47.5
140.0
20.0
21.5
20.0
12.5

25.0
Los Angeles Reg Airport Corp,
Cal
Rev.
25.5
Lacygne, Kan
Rev.
30.0
Gulf Coast Waste Disp. Auth, Tex . Rev.
25.0
j Jacksonville Elec Auth, Fla.
Rev.
45.0
| Tacoma, Wash
lgt & pwr ref 24.3
j Buffalo N. Y.
~
G.O.
22.9
i Ohio
40.0
G.O.
New York, New York
300.0
G.O.
Los Angeles Co, Calif Flood
Control Dist.
G.O.
22.0
Sacramento M u n i Ut. Dist. Calif
Elec rev
50.0
Nsvj Mexico
12.0
G.O & Rev.
Los Angeles, Calif Dept. of
Wtr & Pwr.
Rev.
47.0

3

APPROXIMATE DATE
OF OFFERING

March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March

20
20
20
20
20
20
20
21
21
22
26
26
27
27
27
27
28

March
March
March
March
April
April
April
April
April

3
4
4
5
11

April
April
April

17
18
20

June

6

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.




197

-

13
Table 8

STOCK PRICES AND VOLUME
TRADING VOLUME 2 -

STOCK PRICES 1 '
DATE
NYSE INDEX 3 '

D J . INDUSTRIALS

AMEX *

NYSE

AMEX

1970 - H i g h
Low

52.36
37.69

(1/5)
(5/26)

8 4 2 . 0 0 ( 1 2 / 2 9 ) 2 7 . 0 2 (1/8)
6 3 1 . 1 6 (5/26) 19.36 (5/27)

18.5 (12/4)
7.8 (8/14)

7.1 (1/2)
1.8 (8/14)

1971 - H i g h
Low

57.76
48.73

(4/28)
(1/4)

9 5 0 . 8 2 (4/28) 26.68
797.97(11/23) 22.72

(4/28)
(1/4)

22.1 (2/12)
11.0 (9/17)

6 . 7 (2/5)
2.7 (8/13)

1972 - H i g h
Low

65.14
56.23

(12/11) 1 0 3 6 . 2 7 ( 1 2 / 1 1 ) 28.53
25.61
8 8 9 . 3 0 (1/3)
(1/3)

(4/14)
(1/3)

21.8 (11/10)
11.2 (9/8)

7.4
2.6

1973 - F e b .

Mar.

2
9
16
23

61.79
61.90
61.93
60.82

980.81
979.46
979.23
959.89

25.60
25.50
25.40
25.07

16.6
17.2
17.1
14.7

3.7
3.8
3.5
3.5

2
9
16.

60.17
61.02
60.75

961.32
972.23
963.05

24.68
24.88
24.71

17.2
16.0
14.2

4.0
2.9
2.7

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., (millions of shares).
Volume figures are daily averaged for the entire week,
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

July 3, 1969
December 31, 1969
May 1, 1970

3.

12/31/65 - 50

4.

Average dollar value of shares listed.




4
4-1/2
5

5
5
5

27-1/2 hours per week.
periods, shown below:
Hours/
Week
20
22-1/2
25

(3/10)
(9/8)

Ih

T A B L E 9: Security Credit

END OF PERIOD
Outstanding:
- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
- Jan.
Outstanding
Changes;
1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1973"- Jan.

l
NET i R E D T [
CUSTOMERS' 1 CUSTOMERS' NET EXTENDED BV
:
NET DEBIT
FREE CREDIT
' BROKi RS AND
BALANCES
)
BALANCES
| DEALERS '

CREDIT EXTENDED T O
MARGIN CUSTOMERS BY:
TOTAL
,A
i "1B m N K S ^

I

!
;

j

|

!

5,700
6,180
6,620
7,010
7,200
7,510
7,600
7,780
7,800
7,800
7,890
7,900

2 ,490
2 ,510
2 ,520
2 ,530
2 ,560
2 ,650
2.
,690
2.
,780
2, ,830
2, ,860
2,,860
2,,440

7,700

2, 910

10, 610

300
480
440
390
190
310
150
120
20

50
20
10
10
30
90
50
90
50
30

(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

8 ,190
8 ,690
9 ,140
9 ,540
9 ,760
10 ,160
,350
10:
10;,560
,630
10,
10,,660
10,,750
10,,340

90
10

-420

350
500
450
400
220
400
200
210
70
20
90
410

-200

470

270

2,488
2,542
2,512
2,459
2,300
2,231
2,245
2,117
2,056
2,097
2,218
2,317

(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)

2,296

j
5
!
i

----

.

268
54
-30
-53
-129
-99
14
-128
-61
41
121
99
21

Margin debt, as reported by the N e w York Stock Exchange. Although marg
until March 1968 included loans secured by U.S. governments, the amount
loans included is thought to have been small.
"Bank loans to others than brokers and dealers for purchasing or carry:'rities other than U.S. governments
T h e difference between customers' net debit balances and customers' net tree
dit balances, this figure represents the net credit extended by brokers
dealers to the nonfinancial public.
=
>
N O T E : With the exception of bank loan data, figures are supplied bv th<
Stock Exchange and are end of month data.
Bank loans are for v.veMy i\ •
large commercial banks. Broker data includes loans for regulated secur i L i e < bank
data includes loans for the purpose of purchasing or carrying any secur ity,
e the r
regulated or not.
FRASER discontinued
Series

Digitized for


T A B L E 10: Savings Flows at Nonbank Depositary Intermediaries
($ millions)

DATE

MUTUAL SAVINGS BANKS
NET
REGULAR DEPOSITS 3
NEW
ANNUAL
MONEY2
GROWTH
NET
RATE 1
FLOW

1969
1970
1971
1972

2,549
4,517
9,621
9,788

4.0
6.8
13,5
12.0

1971 - December
1972 - January
February
December

1,209
855
931
1,224

——

1973 - January^./
February^./

785
525

--——
--

-763
936
5,678
5,397

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
ANNUAL
NEW
NET
GROWTH
MONEY2
FLOW
RATE 1
Not Seasonally Adjusted
4,068
3.1
-1,003
10,965
8.1
5,285
28,230
19.3
20,653
32,902
19.5
23,884

325
716
809
294

3,114
3,266
2,818
3,416

n• a •
.
n.a.

3,000
1,650

-—
--

__
—

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

6,617
15,482
37,851
42,690

3.4
7.7
17.5
17.0
__

NET
NEW
MONEY 2

-1,766
6,231
26,331
29,281

1,168
3,117
2,700
1,156

4,323
4,121
3,749
4,640

n.a.
n.a.

3,785
2,175

--

n.a.

3,869
3,485
2,966
2,942

16.3
14.5
12.2
12.0

--

4,575
2,019

18.4
8i0

--—

1,493
3,833
3,509
1,450

Seasonally Adjusted
1972 - September
October
November
December

939
779
720
793

12.8
10.5
9.7
10.5

1973 - Januarys/
February^./

827
439

10.9
5.7

—
—
—
——

2,930
2,706
2,246
2,149

17.8
16.2
13.3
12.6

3,748
1,580

21.3
9.0

-—-

--

Annual growth rate for monthly data is the annualized monthly percentage increase in deposit's.
Net New Money is new deposits net of both withdrawals and interest.
Data for S&tLs 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 Hank Hoard.




-—
——

-- .

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

TOTAL

DATE

OUTSTANDING COMMITMENTS
ALL
MUTUAL
SAVINGS &
SAVINGS
LOAN
BANKS
(N.Y. STATE)
ASSOCIATIONS

I
|
TOTAL

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

(Billions of Dollar 3, Seasonally Adjusted)r/
Nov.
Dec.

j

•Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1

16.6
16.6

13.2
13.1

3.4
3.6

.20
.09

08
-.06

.12
.15

17 .2
18.5
19.6
20.5
21.6
21.3
22.7
22.3
23.4
23.2
23.5
23.3

13.4
14.4
15.3
16.0
17.0
16.8
17.1
17.8
18.7
18.5
18.8
18.6

3.8
4.1
4.3
4.5
4.6
4.5
4.6
4.5
4.7
4.7
4.7
4.7

.23
1.36
1.13
.89
1.04
- .26
.38
.71
1.06
-.36
.38
-.19

.12
1.6l
.93
.69
.96
-.18
.30
.76
.89
-.25
.34
-.20

.11
.35
.20
.20
.08
-.08
.08
-.05
.17
-.11
.04
.01

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. 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.




17

TABLE 12: Net Change in Mortgage Holdings 1

DATE

FINANCIAL INSTITUTIONS
SAVINGS & | L I F E
MUTUAL
TOTAL £/
LOAN
INSURANCE
SAVINGS
INCLUDING
TOTAL I COMMERCIAL
ASSOC.
j COMPANIES
I
BANKS
FNMA-GNMA
BANKS
Not Seasonally Adjusted
23,781
24,074
21,736
41,647

- May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

21,273
19,699
16,827
39,259

6,677
5,404
2,462
9,940

4,958
5,724
4,872
5,931
5,286
4,779
5,114
5,943

4,674
5,692
4,717
5,563
4,918
4,684
4,984
5,811

1,500

1,600
1,500

1,600
1,400
1,400
1,500

1,000
1,000

- Jan.
4,371
- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

4,118

862

3,456
3,828
4,464
4,363
4,908
5,176
4,849
5,471
4,748
4,714
5,282
5,697

3,250
3,550
4,329
4,327
4,521
5,060
4,593
5,179
4,714
4,738
5,212
5,601

1,112
1,178
1,264
1,361
1,434
1,489
1,451
1,477
1,155
1,393'
1,524
1,164

- Jan.
1

2

2,787
2,682
1,845
3,938

9,350
9,561
10,172
24,160

2,459
2,052
2,348
1,221

454
585
438
553
502
. 472
517
598

2,720
3,453
2,758
3,313
2,926
2,673
2,712
3,101

24
54
79
97
90
139
255
1,112

.

n. a.
n.a.
Seasonally Adjusted
524

2,367

365

290
315
464
400
453
516
472
515
537
484
513
525

1,871
2,075
2,596
2,481
2,567
2,959
2,678
3,108
2,911
2,726
2,876
3,130

-23
-18
5
85
67
96
101
79
111
135
299
782

1,212

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 1967.
Beginning January 1972 data reflect activity in limited amount of conventional
mortgages.




15

TABLE 13: Net Increases in Mortgage Debt Outstanding
Billions of dollars, SAAR ?
1- to 4-| MULTIFAMILY j FAMILY

MULTI-AND
COMMERCIAL

FARM

7.2
8.48.8
8.5

1.8
1.8
2.5
2.8

TOTAL

RESIDENTIAL 3

- 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

- 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

- 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

- 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

- I
II
III
IV

37.1
47.8
53.6
53.4

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

- I
II
Ille

61.8
64.1
64.3
67.2

14.5
15.2
14.9
14.6

23.9
24.6
25.3
24.3

2.6
2.6
2.9
2.6

QUARTER

IV

26.6
-36.1
40.1
40. 1
45.4
47.1
46.4
49.1

35.9
37.5
36.2
39.4

^

COMMERCIAL

9.5
9.6
10.2
9.8

14

mmm
3




-

*• -

-

-

-

-iiy

1

T A B L E 14: FNMA Weekly " A u c t i o n " Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEARH
906TOTAL
TOTAL
MONTH & OVER
OFFERED
DAY

IMPLICIT YIELD 2 (per cent)
90DAY

352.8
271.2
186.4

211.5
224.9
162.7

211.5
224.9
162.7

78.7
60.8

49.2
36.2

49.2
36.2

11.
26 r

82.2
108.7

42.4
66.3

42.4
<>6.31

Jan.

8
22

74.2
107.0

61.3
92.1

61.3I
92.1

—

7.69
7.70

Feb.

5

65.4
71.6

65.4
71.6

--

20

128.7
110.3
170.8

107.7

107.7

--

1-YEAR
& OVER

1

7.71
7.73

5

6MONTH

7.75

Oct.

Nov.

Dec.

Mar.

2*
16
30
13
27

---

——

--

--

7.70
7.73
7.74

--

--

7.72
7.70

--

7.68
7. 69

—

—

--

—

--

—

—

—

--

--

Note: Average secondary market yields are g r o s s — b e f o r e deduction of
38 basis-point fee 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 FNMA commitment fees and FNMA stock purchase and holding requirements.




20
T A B L E 15: Private Housing Starts and Permits
STARTS

!

i
DATE-

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL-1 -FAMILY 2 OR MORE 1

TOTAL

!

i
2 - January
February
March
April
May
June
July
August
September
October
November
December

2.
,439
,540
2:
,313
i 2.
,204
j 2.
j2 ;,318
,315
i 2.
; 2.
,244
!
2.
,424
,426
..2, ,446
2,,395
2,,369

1.
,395
1.
,281
1.
,310
1.
,215
L ,308
,283
1.
1,
,319
1.
,373
1,
,382
,315
1,
1,
,324
,207
1,

1,044
1,260
1,003
989
1,011
1,032
925
.1,051
1,045
1,131
1,071
1,162

3 - January
February

!2 j
,496
,444
23

1,
,449
1,
,361

1,047
1,083

i

,

150.9
153.6
205.8
213.2
227.9
226.3
207.5
231.0
204.4
218.2
187.1
150.5
147.1
138.8

UNADJUSTED
I TYPE OF FINANCING
I FHA VA |
OTHER

!

I
i

BUILDING '
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

36.1 7.5
8.0
27.8
37.7 10.5
29.1
8.5
32.4 9.4
31.9
9.6
26.2
9.4
30.3 9.9
28.2
8. 9
25.4
8.5
21.3
8.0
42.3 5.8

107.3
117.8
155.7
172.9
186.1
184.8
171.9
190.8
167.3
184.3
157.8
102.4

2 ,204
2 ,056
2 ,007
1 ,991
1 ,955
2 ,121
2 ,108
2,
,237
2.
,265
2,
,216
2, 139
2, 377

12.0

126.3

2, 218
2.
,155

6.8
6.8

"

1

Total starts are Census estimates including farm for both permit-issuing and
noi,-issuing areas. A dwelling unit is started when excavation begins; all units
in an apartment structure are considered started at that time.
FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed. Other starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.

2

Building permits are Census estimates based on 13,000 or all known permitissuing places. Unlike starts, seasonally adjusted building permits reflect
direct adjustment for differences in the number of days per month, as well as
other differences in timing and coverage.




21
TABLE 16: Mortgage and Bond Yields

DATE

I
1

FHA
MORTGAGES

j

30-year

2

CONVENTIONAL
MORTGAGES
3

1

SPREAD BENEW
TWEEN YIELDS
ISSUE
ON CONV. & .
Aaa
FHA MORTUTILITY
GAGES 5
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES 6

1971 - High
Low

7.97
7.32

7.95
7.55

.28
-.19

8.26
7.02

.52
-.36

1972 - High
Low

7.57
7.45

7.70
7.55

.14
.06

7.40
7.09

.61
.05

1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
August
September
October
November
December

7.49
7.46
7.45
7.50
7.53
7.54
7.54
7.55
7.56
7.57
7.57
7.56

7.60
7.60
7.55
7.60
7.60
7.60
7.65
7.65
7.70
7.70
7.70
7.70

.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

.28
.12
.21
.05
.15
.22
.16
.18
.16
.19
.61
.55

1973 - Jan.
Feb.

7.55
7.56

7.70
7.75

.15
.19

7.38
7.40

.32
.35

1

2

3

4
5
6

1

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. Separate
data available for 25-year a n d — b e g i n n i n g July I961--30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 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
TABLE 17: Conventional Mortgage Terms
NEW HOMES

DATE

1972
Jan.
Feb.
Mar.
Apr.
May
June
July
; Aug.
Sept.
J Oct.
Nov.
Dec.
1973
Jan. r/
Feb. £ /

| LOAN™/
CON- FEES &
PRICE LOAN
TRACT CHARGES EFFEC- MATURITY
RATE
(PER
(YEARS) > RATIO AMT.
TIVE
j (PER ($000)
(PER
CENT) RATE
CENT)
CENT)
3
2

1

V
EXISTING HOMES
CON- ^ FEES & r
[l.OAN/ j
~
" i
TRACT CHARGES EFFEC-I MATU- Ipkir.F 1 LOAN
(PER
RATE
TIVE ! RITY |RATIO | AMT.
CENT) RATE j (YEARS ) (PER
(PER
|
CENT)
CENT)
2
3
j

! ($ooo)
1

7.62
7.45
7.38
7.38
7.40
7.41
7.43
7.45
7.43
7.48
7.50
7.51

0.95
1.02
0.84
0.83
0.84
0.85
0.83
0.86
0=86
0.88
0.91
0.92

7.78
7.61
7.52
7.51
7.53
7.55
7.56
7.59
7.57
7.62
7.65
7.66

26 5
27,,0
.2
27,
.2
27.
.2
27.
,2
27.
,2
27.
27.
,5
27. 3
27. 2
27.5
27. 5

75.0
76.5
76.2
76.0
76.2
76.5
77.0
77.5
77.5
77.3
77.3
78.0

27.6
27.8
28.2
28.5
28.5
27.8
28.2
27.9
27.9
27.4
28.0
29.1

7.45
7.35
7.31
7.30
7.33
7.36
7.37
7.39
7.42
7.43
7.44
7.45

0.82
7.58
0.79
7.48
0.77
7.44
0.78
7.42
0.77
7.46
0.78
7.49
0.83
7.50
0.81
7.52
0.83
7.55
0.84
7.57
0.84^ "7.58
0.86
7.59

7.52
7.53

0.92
0.96

7.67
7.69

27. 5
28.0

78.5
79.0

29.0
29.9

7.46
7.47

0.83
0.82

7.60
7.61

24.7
25.4
25.1
25.2
25.2
25.5
25.6
26.3
26.2
26.1
26.3
26.4

74.
,7
75.
.8
.6
75.
75.
,3
75.
,4
76. 1
76.
,2
76. 5
76. 5
76. 3
76. 8
76. 8

24.1
24.8
24.4
24.9
24.6
25.2
25.2
25.4
24.8
25.0
25.4
25.7

26.1
26.4

77.0
77.4

25.6
25.4

... - J
1

2

3

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.
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.
Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.




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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102