Full text of H.16 Capital Market Developments : March 22, 1971
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DECONTROLLED AFTER SIX MOl March 22, 4971 /CAPITAL IMARKEI DEVELOPMENTS C a p i t a l Markets Section, D i v i s i o n of Research and S t a t i s t i c s , Board of Governors of the Federal Reserve System, Washington, D. C. INDEX 3-5 Developments in the Corporate and Municipal Bond Markets 6-7 Capital Market Yields 8-13 Capital Market Volume 14-17 Stock Market 18-33 Mortgage Market SYMBOLS: e Estimate p Preliminary r Revised n.a. Not available TABLE 1: Yields, Volume and Reception YIELDS MQODY'S SEASONED 1 NEW ISSUE Aaa WEEK ENDING: 1971 - Feb. Mar. f 12 IS 26 6.91 6.97 7.11 7.59 7.10 7.06 7.07 7.10 384 637 ' 522 627 64 94 76 89 n.a. n.a. n. a. 5 12 19 26 7.79 7.54 7.14 n.a. 7.12 7.20 7.26 n.a. 930 976 936 l,000e 90 94 96 n.a. n.a. n.a. n.a. n.a. YIELDS MOODY'S BOND BUYER SEASONED SEASONED 20 Aaa BOND INDEX WEEK ENDING: 1971 - Feb. Mar. CORPORATE BOND MARKET VOLUME;2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS MUNICIPAL BOND MARKET VOLUME2 PER CENT GROSS SOLD BY END OF WEEK OFFERINGS 5 12 19 26 5.10 4.75 4.85 5.00 5.27 5.05 5.27 5.34 343 462 618 387 72 69 63 82 5 12 19 26 5.15 5.37 5.28 5,00 375 596 485 41 Oe 62 89 84 n.a. 4.95 4.90 .... BONDS SCHEDULED WITHIN 28 DAYS 870 1,037 1,070 971 1,127 a. a. n.a. n.a. ^ 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.) 1 2 Millions of dollars unless otherwise indicated. Note: See footnotes to Table 3 I TABLE 2: Details on Inventories DATE OFFERED AMOUNT (MIL. $) 30.0 55.0 40.0 90.0 50.0 50.0 35.0 50.0 3/18 3/18 3/18 3/17 3/17 3/17 3/16 2/17 DATE OFFERED | RELE\SED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND YIELD CALL PROTECTION COUPON ISSUER i Arkansas Pwr. & Lt. Western Union Texas Gas Tran. Virginia Elec. & Pwr. N. Amer. Rockwell N. Amer. Rockwell Utah Pwr. & Lt. Dana Corp. 7-5/8 8.45 8-1/8 7-3/8 7.30 8.30 6-1/4 7.30 7.50 8.45 8.18 7.25 7.30 8.30 6.25 7.30 A Baa Baa Aa , Baa Baa A A 5 yrs. 10 yrs. 10 yrs. 4 yrs. 10 yrs. 10 yrs. NC 5 yrs. ESTIMATED PROPORTION SOLD 75% 98% 90% 50% 85% 90% 75% 80% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PRO- / COUPON IN YIELD1 CALL PROT. PORTION RELEASED ( ISSUER YIELD AMOUNT NONE INVENTORIES 1 MUNICIPALS BLUE LIST | IN SYNDICATE DATE 1971 - Feb. 19 26 882 835 394 217 CORPORATES IN SYNDICATE 133 161 133 266 844 5 75 160 767 r 12 90 112 787 19 N.C. - No call protection. 1 All figures in millions of dollars. Blue List is daily average for week ended Friday,except for latest week which is daily average of three days ended Wednesday. All other figures are as of Friday. ~ Mar. TABLE 3: High Grade Bond Yields DATE NEW CORPORATE Aaa 1 MOODY'S SEASONED CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS 4 1968 High Low 7.02 6.13 (.12/13) (8/30) 6.55 5.95 (1/27) (9/13) . 5.90 5.18 (1/20) (8/9) 4.85 4.07 (1/26) (8/8) 1969 • High Low 8.85 6.90 (12/5) (2/21) 7.84 6.55 (2/26) (1/12) 6.97 5.96 (12/26) (1/24) 6.90 4.82 (12/18) (1/28) 1970 - High Low 9.30 7.68 (6/19) (12/18) 8.60 7.48 (7/3) (12/31) 7.55 6.17 (5/29) (12/18) 7.12 5.33 (5/29) (12/11) 1971 - Feb. 19 26 Mar. 5 12 19 - 1 ' - 7.11 7.59 7.07 7.10 6.14 6.22 5.27 5.34 7.79 7.54 7.14 7.13 7.20 7.25 6.20 6.02 5 < 87 5.37 5.28 5.00 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, - TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS STATE AND LOCAL 2 CORPORATE1 PERIOD ! '• 1971 1970 1969 1 1971 1970 1969 2,750e 3,100e 2,636 1,802 3,539 2,075 2,045 2,098 ' i : 2,700e 1,800e 1,340 1 ,214 i,555 1,262 987 538 3,170 3,909 3,389 2,748 2,076 2,530 i i ,647 996 ,085 1,801 1,110 737 j ' j July August September 2,768 2,274 3,518 2,478 1,427 2,427 I 1 ,348 i.,359 i,758 1,097 808 559 : : ; October November December 3,777 4,182 3,980 1,933 2,375 2,532 i,,924 l.,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 | ? ! L 18,445 27,005 38,944 13,572 19,904 26,744 7,837 12,302 18, 164 6,435 8,899 11,881 j J. f January February March _^April May June 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1 i ! • 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. " r TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH 1970 PUBLICLY OFFERED GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND MEMO: PRIVATELY PFD. ISSUES INCLUDED MFG. PLACED STOCK FOREIGN CONVERTIBLE GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNTCATIONS ISSUERS' I II III IV e/ 7,977 10,468 8,560 11,937 4,577 6,994 5,987 7,827 1,262 1,282 914 1,421 2,138 2,190 1,659 2,690 222 135 83 226 922 710 287 737 2,584 2,445 2,314 3,169 2,085 2,812 2,714 3,406 766 2,162 868 1,346 2,543 3,048 2,663 4,020 1970 - Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1,802 3,539 3,170 3,909 3,389 2,768 2,274 3,518 3,777 4,181 3,979 1,068 1,914 2,022 3,041 1,931 1,831 1,731 2,425 2,390 3,001 2,436 266 471 447 399 436 320 205 389 304 283 834 ' 468 1,154 701 468 1,021 617 338 . 704 1,083 898 709 33 128 89 20 26 68 11 4 56 11 159 249 286 398 230 82 107 59 121 388 184 165 357 1,416 689 817 939 638 682 994 1,006 1,107 1,056 540 906 1.109 600 1,103 843 630 1,241 1,101 1,350 955 226 306 62 1,747 353 144 279 445 371 693 282 680 911 1,310 744 994 1,143 682 838 1,300 1,033 1,687 1971 - Jan. e/ Feb. e/ 2,750 3,100 2,000 300 450 n. a. 2 ,200 300 600 n.a. 1 80 505 465 380 1,400 150 785 1.110 620 585 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 . • TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury)1 ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS') COUPON RATI- OR NET INTEREST COST MATURITY OFFERING YIELD MOODY'S RATINC* Corporates Levi Strauss Co. Florida Gas Transmission Co. Texas Utilities Co. U. S. Home & Dev. Corp. Columbia Gas System Inc. Chemical New York Corp. Maine Yankee Atomic Pwr. Co. Walgreen Co. Bankers Trust Co. Abbott Laboratories Phillips Petroleum Maine Yankee Atomic Pwr. Co. General Tel. & Elec. Corp. Gen'l Elec. Co. Pet Inc. American Airlines Inc. Morgan Guaranty Duquense Light Co. Ford Motor Credit Ford Motor Credit American Can Co. Ralston Purina Co. Rochester Tel. Co. Pacific & Foundry Co. Swift & Co. Duke Pwr. Co. Com. Stk. 1st. Mtg. Pipe Line S.F. bds. Com. Stk. Com. Stk. Debs. Conv. Debs. 1st. Mtg. S.F. Conv. Debs. Notes Debs. S.F. debs. Debs. Com Stk. S.F. debs. Debs. Ctfs. Cap. Notes 1st. Mtg. Debs. Notes Debs. S. F. debs. 1st. Mtg. Debs. Notes 1st. & Ref. Mtg. 50.3 18. 0 43.0 23. 0 75. 0 50. 0 1991 8.75 -- —— -- —— 1996 1996 8.38 5.50 8. 33 5.50 A 50. 0 30. 0 75. 0 60. 0 200.,0 15.,0 142..9 200.,0 35..0 32,.0 100.0 35.,0 75..0 125..0 75 .0 50 .0 30 .0 15 .0 50 .0 2002 1991 1996 1996 2001 1976 8.50 5.50 7.65 7.68 7.63 7.50 8. 40 5. 50 7.,65 7.,67 7.,67 7..50 A Baa 100 .0 2001 8. 75 -•- -- -- 1996 1991 1989 1978 2001 1991 1978 2001 1996 2001 1996 1978 7.50 8100 10.00 6.38 7.88 8.50 6.88 lr15 7.70 7.63 8.10 7.38 7..50 8,.00 10100 6.38 ,83 / 7. 8..50 6..77 7 .79 7 .70 7 .50 8 .10 7 .38 7.50 7 .42 , Baa -- -- — Aa Aa Baa -- Aaa --- Aa A A A Aa A Baa Aa TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury)1 March 1, thru March 19 , 1971 ISSUER AMOUNT (MILLIONS OF MATURITY . DOLLARS) TYPE 2 COUPON RATE OR NET INTEREST COST OFFERING YIELD MOODY1 S RATING . Coroorates (continued) American Metal Climax Inc. American Metal Climax Inc. Pacific Tel. & Tel. Co. Philadelphia Elec. Co. Standard Oil Co. (Indiana) Western Union Tel. Co. Virginia Elec, & Pwr. Co. Bankers Trst. N.Y. Corp. Utah Pwr. & Lt. Co. Puerto Rico Tel. Co. No. Am. Rockwell Corp. No. Am. Rockwell Corp. Arkansas Pwr. & -^t. Co. Natural Gas Pipeline Co. of Am. Natural Gas Pipeline Co. of Am. Park Forest So. Dev. Co. S.F. debs. 50.0 Notes 50.0 Debs. 200.0 Cum. Pref. Stk. . 50.0 Conv. deb. 200.0 S.F. debs. 55.0 .1st, Mtg 90.0 Debs. 25.0 1st, Mtg 35.0 Debs. 35.0 Bds. 50.0 S.F. debs. 50.0 list. Mtg 30.0 1st. Mtg pipeline 40.0 Debs. 40.0 Gov t-backed debs. 30.0 . 1996 1978 2007 8.50 7.50 7.80 1996 1996 2001 1978 1976 1996 1977 1996 2001 5.00 8.45 7.25 6.38 6.25 ' 8.70 7.30 8.30 7.63 1991 1977 7.70 6.75 • 7.70 6.75 1991 7.00 7.00 -- • 8.50 7.50 7.80 —— Baa Baa A aa 1 5.00 8.45 7.38 6.42 6.25 8.70 7.30 8.30 7.50 —— Aa Baa Aa N.R. A Baa Baa Baa A Aa A N.R. 10 TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury)1 z X AMOUNT j (MILLIONS MATURITY OF DOLLARS) | i TYPE 2 ISSUER COUPON RATE OR NET INTEREST COST | i OFFER! r;;c j YIELD \ MOODY'S RATING State and Local Washington St. Bd. Comm. College Ed. San Antonio, Tex. Suffolk Co., N. Y. Birmingham Wtr. Works Board,. Alabama Broward Co. S/D, Fla. Dallas, City of X Dallas, Texas Atlanta, Ga. Maryland, State of New York St. Dorm. Auth. New York St. Dorm. Auth. Hempstead, N. Y. Milwaukee, Wise. Roanoke, Va. Rev. 21.0 1974-2001 6.04 3.25-6.30 -- G.O. G.O. 13.0 16.6 1974-91 1972-2000 4.55 2.75-5. 10 2.50-5. 70 Aa A Rev. G.O. G.O. G.O. Rev. G.O. G.O. G.O. G.O. G.O. G.O. G.O. 11.0 18.6 27.0 14.1 23.5 56.3 6.0 23.5 17.9 12.8 10.1 12.7 1972-96 1977-88 1971-90 1972-91 1972-01 1974-86 1972-2001 1972-2001 1972-97 1972-86 1972-91 1972-08 5.20 4.90 4.65 4.57 6.08 4.20 5.90 5.90 4.78 4.10 4.52 2.75-5.80 3.75-5. 10 2.25-5.30 2.40-5. 90 2.90-6. 60 2.75-4. 60 2.70-6.30 2.70-6.30 2.50-5. 75 2.30-4. 70 2.40-4.90 2.60-6 .15 A-l A Aa Aa Baa G.O. G.O. G.O. Rev. G.O. Rev. Rev. Rev. G.O. G.O. G .0. Rev. 19.2 13.3 35.2 22.0 18.8 11.0 19.0 70.0 19.1 8.0 12.1 20.0 1974-96 1972-00 1971-91 1976-95 1972-91 1974-94 1975-90 2010 1971-00 1971-80 1972-09 1972-96 5.41 5.39 4.66 4.80 G.O. 10.0 1972-81 Clarkstown, N. Y. Puerto Rico Urban Rev. & 4Kag. Corp. Oakland Co., Mich. Balto., Md. Colorado Springs, Colo., Newark, N.J. East Allen SBC, Ind. Kentucky Turnpike Auth. Kentucky Turnpike Auth. Hartford Co. Metro Diet., Conn. Hartford Co. Metro Dist. Conn. University, K.Y. Orlando Utilities Com., Fla. Greater Anchorage, Alaska Area Borough * \ —— -- -- 4.80 6.49 6.49 4.59 3.102.25-5 .00 3.10-5 .30 2.25-5 .50 2.70-5.40i 3.60-6 .10 — —— A Aaa Aa Baa A A-l Aaa Aa Aa Aa —— Aaa 6.17 5.07 2.10-5 .10 2.10-3 .85 2.75-6 .50 2.40-5 .20 4.58 2.75-4.80 Baa — ""** A Aa TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury)1 March 1, thru March,19» ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST MOODY'S RATING OFFERING .YIELD State and Local Hawaii, State of Louisiana State Off. Bldg. Corp. South Carolina, State of Buffalo, N. Y. New Jersey, State of Henderson, Ky. Henderson, Ky. Cincinnati, Ohio California St. Louis Co., Mo. Penna., State of Penna., State of Rev. Rev. G.O. G.O. G.O. Rev. Rev. G.O. G.O. G.O. G.O. G.O. - 30.0 25.0 38.7 22.1 75.0 27.7 48.3 16.1 10.0 17.4 50.0 50.0 1976-96 1973-92 1971-86 1971-99 1976-01 1975-91 2003 1972-91 1972-91 1972-86 1973-11 1973-00 6.47 5.80 4.11 4.77 6.65 6.65 4.69 4.45 • 4.13 5.11 5.11 4.00-5.75 8.00-6.15 2.15-4.50 2.25-5.50 3.10-5.40 —— A Aaa Aa Aaa , — 3.60-6.30 2.50-5.50 :2.25-5.40 2.20-4.50 2.70-5.80 2.70-5.80 — Aa Aa Aa Aa Aa i * 1 2 3 lights 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 gem val obligation, Kev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-lit., revenue bonds secured only by income from quas i-utilities; Rev.-S.l., revenue bonds secured by revenue from specific taxes only; Rev.-Rivnt., revenue bonds secured solely by lease payments. Includes foreign government and International Bank for Reconstruction and Development issues and non-quaranteed issues by Federal Agencies. / 1971 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)1 (continued) ISSUER Corporates First Chicago Corp. Alexander's Inc. Hartford National Corp. Avco Fin. Serv. Inc. Harsco Corp. F. W. Woolworth Co. Georgia - Pacific Corp. Standard Oil Co. (Calif.) Pennzoil United Inc. Pennzoil United Inc. L. I. Lighting Co. Kraftco Corp. Seaboard Coast Line Railroad Oranges & Rockland Utilities Inc. Texas Gas Trans. Corp. Hoover Ball & Bearing Co. Owens-Illinois Inc. U. S. Financial N. J. Bell Tel. Co. Dart Industries Inc. Gen'l Tel. Co. of the S.W. Dayco Corp. Alabama Gas Co. ^ Monumental Corp. Occidental Pet. Corp. Beneficial Corp. Beneficial Corp. Microdot Inc. Central Tel. & Utility Corp. Falcon Tankers Inc. Gen'l Tel. Co. of Ohio Dayton Pwr. & Lt. Co. Dayton Pwr. & Lt. Co. Levitz Furniture Corp. Southern Natural Gas Co. Ohio Pwr. Co. Feeders Corp. La. Pwr. & Lt. El Paso Elec. Co. Montana Pwr. Co. Michigan Wisconsin Pipeline Union Elec. Co. 111. Bell Tel. Co. Brown Shoe Co. Lord Fund Inc. Digitized for Abbeth-Bd.-Deb. FRASER TYPE AMOUNT (MILLIONS OF DOLLARS) Notes Debs. Debs. Debs. S.F. debs. Debs. Debs. S.F. debs. Debs. Conv. debs. 1st. Mtg. Debs. 1st. Mtg. 100 .0 15 .0 25 .0 50 .0 30 .0 125 .0 125 .0 250 .0 75 .0 50 .0 40 .0 50 .0 50 • 0 Bds. Debs. S.F. debs. Debs/ Debs. Debs. Debs. Bds. Debs. 1st. Mtg. Notes Conv. debs. Bds. Bds. Notes 1st. Mtg. Bds. 1st. Mtg. 1st. Mtg. Pref. Stk. Com. Stk. Debs. 1st. Mtg. Conv. debs. 1st. Mtg. 1st. Mtg. Bds. Bds. Bds. Sds. Notes 25 .0 30.p 25 .0 100 .0 35 .0 125 .0 60,.0 40,.0 20,.0 16,.0 20..0 100..0 25.,0 50.,0 20.,0 20. 0 14.0 20. 0 45. 0 20. 0 32. 1 50. .0 40. ' 50.0 25. 0 16. 0 25. 0 40. 0 50. 0 200. 0 30. 0 120. 0 Debs. 0. APPROXIMATE DATE OF OFFERING March March March March March March March March March March March March March ^ 22 22 22 22 22 22 22 23 23 23 23 24 24 March 24 March 24 March 25 March 25 March 25 March 30 March 30 March 31 March March March March March March March March March March March March March March April 1 April 5 April 6 April April 14 April 15 April .15 April 20 April April f JP n % * ' 1 > | & I' t k k F t % k I ! 3 I 13 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) APPROXIMATE DATE OF OFFERING Corporates fcontinued) Minn. Fwr. & Lt. Kentucky Utilities Co. Am. Fletcher Corp. Balto. Gas & Electric Kentucky Utilities Co. National Homes Corp. R. J. Reynolds Ind Inc. Armstrong Rubber Co. Indiana Bell Tel. Co. Kennecott Copper Corp. McGraw-Edison Co. New England Tel. & Tel. Co. Western Electric Co. 1st. Mtg. Equity Sec. Debs. 1st. Mtg. 1st. Mtg. Conv. Debs. S.F. debs. Debs. Debs. Debs. S.F. debs. Debs. Debs t 23.0 15.0 25.0 60.0 35.0 25.0 100.0 25.0 100.0 200.0 50.0 200.0 100.0 April April April April April April April April April April May 1 May 25 June 8 14 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)i . , j .! ISSUER j TYPE j AMOUNT (MILLIONS OF DOLLARS) j 1971 APPROXIMATE DATE OF OFFERING State and Local Akron, Ohio Rev. Rev. Bergen Co., N.J. Swr. Auth. Wisconsin, State of jG.O. New York State Pwr. Auth. * Rev. Clark Co., Nev. S/D G.O. Los Angeles Reg. Arpt. Imp. Rev. Corp., California Michigan, State of G.O. West Virginia, State of G.O. Texas Wtr. Dev. Bd. G.O. San Bernardino, Calif. Redevj AgencyBds. Cleveland City Sch. Dist. G.O. Oakland Co., Mich. G.O. Monmonth Co., N.J. G.O. Municipality of Metro Seattle, Washington G.O. Greensboro, N. C. \ G.O. Oregon, State of G.O. Rev. Kansas City, M.O. Howard Co., Md. G.O. Memphis, Tenn. 1 G.O.^ Ohio, State of j G.O. L. A. Co. Flood Con. Dist, ; G.O. *Louisiana Stadium and E p . , District ' ^ Rev. Satita Clara Co., Calif, Btdg. Rev. Auth. Wayne, Township, N. J. S/D G.O. Rev. L.A. Dept. of Wtr. & Pwr. Sacramento, Calif. Municipal Utility Dist. Rev. Allegheny Co., Pa. G.O. * 1 2 10.0 40.0 19.5 110.0 13.0 March March March March March 22 23 23 24 25 46.5 80.0 45.0 25.0 March 25 March 30 March 30 March 13.5 16.0 13.3 11.2 March March March April 20.0 11.0 47.5 27.5 10.7 25.0 50.0 10.0 April 1 April 6 April 6 April 7 April 7 April 6 April 6 April 13 113.0 April 21 17.0 10.5 " 39.0 April 21 April 22 April 28 40.0 29.7 / May July " 1 5 1 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. t j i is # i i r i * Table 8 STOCK PRICES AND VOLUME STOCK PRICES1- TRADING VOLUME 2 ' DATE NYSE INDEX 3 - D J. INDUSTRIALS AMEX 4 - NYSE AMEX 1968 - High Low 61.27(11/2) 48.66(3/5) 985.21(12/13) 33.24(12/20) 21.97(3/25) 825.13(3/21) 17.1(7/12) 8.3(3/29) 9.3(1/19) 2.9(3/29) 1969 - High Low 50.32(5/14) 49.31(7/29) 32.91(1/3) 968.85(5/14) 769.93(12/17) 25.02(7/29) 16.5(3/29) 8.6(8/29) 8.0(1/31) 3.6(11/21) 1970 - High Low 52.36(1/5) 37.69(5/26) 842.00(12/29) 631.16(5/26) 18.5(12/4) 7.8(8/14) 7.1(1/2) 1.8(8/14) 1971 - Jan. Feb. Mar. 27.02(1/8) 19.36(5/27) 29 52.64 868.50 24.32 20.2 5.3 5 12 19 26 53.36 54.16 53.20 53.19 876.57 888.83 878.56 878.83 24.87 ,25.37 25.03 25.13 21.1 22.1 18.6 16.1 6.9 6.7 6.2 4.6 54.47 54.83 >5.69 898.00 398.34 >12.92 16.5 18.3 18.3 5.6 6.4 6.1 5 12 19 25.71 25.88 26.14 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/ Through: Week From P«v January 3, 1969 July 7, 1969 January 2, M 7 0 July 3, 1969 December 31, 1969 May I. 1970 3. 12/31/65 - 50 41 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 ' L6 , TABLE 9: Security Credit I 1 END OF PERIOE I CREDIT EXTENDED TO BY: BROKERS< | BANKS 2. |'TOTAL CUSTOMERS' NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY FREE CREDIT BROKERS AND DEALERS 3 BALANCES Outstanding: 1970 - Jan. Feb. Mar. Apr. May June July Aug. ; , Sept. Oct. Nov. Dec. Jan. 4,680 4,570 4,520 4,360 4,160 4,150 3,800 3,810 3,920 4,010 4,010 4,030 ~ 2,430 2,370 2,370 2,330 2,290 2,290 2,290 2,300 2,330 2,270 2,320 2,*30 7,110 6,940 6,890 6,690 6,450 6,150 6,090 6,110 6,250 6,280 6,330 6,360 4,000% 2,3* 6,300 / 6,683 6,562 6,353 5,985 5,433 5,281 (4) (4) (4) (4) (4) (4) 2,626 2,563 2,441 2,248 2,222 2,009 (5)2,180 2,083 2,236 2,163 2,197 2,286 4,057 4,099 3,912 3,724 3,211 3,272 (4) (4) (4) (4) (4) (4) (4) . (4) 2,452 i j ! 1 i j Change in Outstanding: 1970 - Jan. Feb. Mar. Apr. May June - July Aug. Sept. Oct. Nov. Dec. Jan. -290 -110 - 50 -160 200 ' - 10 -350 - 10 110 90 2 18 10 30 - 60 50 10 -440 -170 - 50 -200 240 -300 - 60 - 20 140 30 52 28 -30 -30 -60 -150 - 40 - 40 - 40 -762 -121 -209 -368 -552 -152 -—— —— -- \ -177 -163 - 22 -193 - 26 -213 171 97 153 - 73 34 89 -585 42 -187 -188 -513 - 61 j ! 1 | -—— -—— —— 166 1 1 ¥ I I 1 2 3 Margin debt, as reported by the New York Stock Exchange. Although margin debt tintil March 1968 included loans secured by U.S. governments, the amount of such lcjans 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 Yr-k Stock Exchange and are end of month data. Bank loans arc 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. i TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) 17 DATE MUTUAL SAVINGS BANKS REGULAR DEPOSITS 3 NET NEW ANNUAL MONEY 2 GROWTH . NET 1 FLOW RATE SAVINGS <5c LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL NET GROWTH MONEY 2 1 FLOW RATE TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW j ni:t~ I\'KW MONEY 2 Not Seasonally Adjusted 1968 1969 1970 4,203 2,549 4,466 1969 - Dec. 1970 - Jan. Feb. 1970 - Dec. , 1971 - Jan. , Feb.2./ . 571 -114 246 1,167 798 • 900 7.0 4.0 6.7 -— 1,143 -763 936 7,432 4,200 11,173 6.0 3.2 8.2 -237 -240 160 1,085 -1,417 205 —— 376 631 800 2,816 2,475 2,363 — 1,321 1,415 1,130 1,740 3,540 2,391 > —— 2,738 -1,003 5,i95 11,635 6,749 15,639 6.3 3.4 7.7 3,881 -1,766 6,231 -387 -1,418 177 1,161 2,476 2,342 1,656 -1,531 451 —— -624 -1,658 337 3,983 3,273 3,263 < -—— — 1,537 3,107 3,142 Seasonally Adjusted 1970 - Sept. Oct. Nov. Dec. , 1971 - Jan. Feb. E / 1 2 3 426 437 540 796 885 939 7.4 7.6 9.3 13.6 15.0 15.7 — — — — • 11.3 12.0 ?.5 14.5 29.1 19.2 —— -—— -- 1,747 1,852 1,670 2,536 4,425 3,330 10.0 10.6 9.4 . 14.2 24.5 18.1 — — — -- -- 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. SOURCK: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. NOTE: Data shown above reflect revised seasonal adjustments. - S&L data (unadjusted) have been revised from benchmarks. TABLE 11: Mortgage Commitments at Selected Thrift Institutions 1 OUTSTANDING COMMITMENTS NET CHANGE ALL ALL MUTUAL SAVINGS TOTAL SAVINGS & SAVINGS & BANKS LOAN LOAN (N.Y. STATE) ASSOCIATIONS ASSOCIATIONS (Billions of Dollars, Seasonally Adjusted) 1/ DATE 8.3 1970 - Jan. Feb. Mar Apr. May June i • Aug. Sept. Oct. Nov. Dec. 8.6 8.8 9.1 9.4 9.7 10.0 1971 - Jan. 10.5 8.0 7.6 7.8 8.0 5.7 5.55.2 5.4 5.8 6.5 2.6 2.5 2.5 2.4 2.2 7.1 7.5 7.8 8.1 1.9 1.9 1.9 1.9 -.14 -.27 -.29 .08 .20 .37 .21 .26 .31 .28 .06 8.4 2.1 -.26 6.8 2.0 2.0 . MUTUAL SAVINGS BANKS (N.Y. STATE) -.18 -.20 -.24 .21 .34 .41 .29 .36 .37 .35 .28 .04 -. 07 -.05 -.13 -.14 -.04 -.08 -.10 -.06 -.07 -.22 .25 -.51 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. 19 TABLE 12: Net Change in Mortgage Holdings 1 DATE TOTAL INCLUDING FNMA-GNMA TOTAL FINANCIAL INSTITUTIONS | 1 MUTUAL SAVINGS & 1 LIFE COMMERCIAL SAVINGS LOAN 1 INSURANCE ' n.'MA-GXMA BANKS ASSOC. | COMPANIES 1 1 BANKS 1 Not Seasonally Adiusted 2,323 " 4,596 3,761 2,720 4,705 1,797 2,907 7,520 3,153 4,639 2,508 2,459 9,350 2,787 6,677 4,375 2,052 2,682 9,407 5,535 18,105 20,016 23,781 24,051 15,782 18,219 21,273 19,676 1969 - Nov. - Dec. 1,636 2,120 1,042 1,475 300 200 151 325 450 533 141 417 1970 - Jan. 1,041 437 50 38 136 213 604 120 495 253 148 1966 1967 1968 1969 1970 - Nov. - Dec. 2,178 2,763 1,925 2,615 300 200 183 254 1,322 1,666 1971 - Jan. n. a. n.a. 100 238 967 1,469 1,542 1,^30 1,351 1,485 1,749 2,083 1,817 2,091 2,074 2,187 2,556 919 1,044 809 844 1,050 1,281 1,575 1,409 1,727 1,754 1,958 2,456 231 199 140 76 65 81 165 168 228 195 224 312 1970 - Jan. Feb. Mar. Apr. MayJune July Aug. Sept. Oct. Nov. Dec. 1971 - Jan. 1 n.a. n.a. 283 Seasonally Adlusted 452 25 482 143 322 186 385 188 631 155 201 777 142 1,055 983 175 245 1,103 1,189 170 1,427 176 208 1,704 2.24 1,287 594 645 n.a. 211 220 161 195 199 222 213 83 151 200 131 232 550 498 521 507 435 468 508 408 364 320 229 100 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 there-^ after 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 1969. 20 TABLE 13: Net Increases in Mortgage Debt Outstanding Billions of dollars, SAAR QUARTER TOTAL RESIDENTIAL3 1 - to 4— MULTIFAMILY FAMILY FARM 2.2 1.8 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 l 8.4 8.8 8.4 • 1.8 1.8 2.5 2.8 19.0 18.2 ^C7.7 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 31.3 28.9 26.5 30.4 29.0 21.5 19.3 18.3 18.6 16.8 14.6 13.0 4.4 4.7 4.7 5.3 6.2 5.3 5.4 10.4 10.1 10;0 10.7 20.3 231.4 26.9 13.8 16.9 8.8 11.5 20.9 15.0 5.0 5.4 6.0 5.0 5.0 4.2 9.8 9.8 10.1 10.9 9.1 8.3 7.0 1967 - I II III IV 15.9 20.7 26.6 27.3 10.3 13.9 19.2 19.8 1968 - I n III ^ 27.7 26.2 26.0 29.6 1969 - I p lip hip IVp 1970 - I p IIIp IVp 8.2 . 6.0 5.5 4.1 18.6 15.1 I$> MULTI-AND COMMERCIAL \ . 2.6 2.1 1966 - II IV iv- COMMERCIAL , 5.2 i j 1.8 | 1.8 j 2.2 | 2.2 < 1.8 j 1.4 | 1.5 1.5 1.7 j | > I v ' 1 i 1 Derived from data on mortgage debt outstanding from FederaTl)eposit Insurance Corporation, Federal Home Loan Bante 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. • < May differ somewhat from related flow"of funds seriei mainly because of more aggregative type of seasonal adjustment. Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family and multifamily mortgage debt combined. TABLE 14: FNMA Weekly "Auction" Results WEEK ENDED COMMITMENTS IN $ MILLIONS IMPLICIT YIELD2(per cent) ACCEPTED 1-YEARN 906901-YEAR 1 TOTAL TOTAL 6MONTH & OVER DAY & OVER OFFERED DAY M0NTH - Oct. 5 19 267.5 352.5 Nov. 2 16 341.5 222.4 Dec. 7 14 28 166.5 165.5 60.6 127.8 124.7 48.1 - Jan. 25 44.6 23.4 Feb. 8. Mar. 1 186.0 62. 2 53. 2 73.1 88.1 14.5 8.4 8.90 8.89 8.92 8.90 8.97 8.95 100. 1 '181.2 : 170.3 75. 8 62.4 79.4 18.7 15.1 8.90 8.89 8.93 8.90 8.93 8.92 54.,7 42.,1 17.,2 60.9 72.1 28.9 12.2 10.5 3.0 8.56 8.51 8.41 8.54 8.43 8.36 8*57 8.47 8.40 35.5 9.,9 25.6 -- 7.83 7.96 —— 23.3 10.,6 12.7 . - - 7.67 7.67 — 51.8 15. 2 29.3 7.43 7.43 149.8 149.7 7,3 7.56 Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. 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 fee and required purchase and holding of FNMA stock, assuming prepayment of 1 cJ years for 30-year Government-underwritten mortgages. Yields shown are gross, before deduction of 38 basis points fee paid by investors to servicers. Prior to August 10, 1970 the servicing fee was 50 basis points. 2fe TABLE 15: Private Housing Starts and Permits STARTS DATE SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1,059 1,306 1,392 1,224 1,242 1,393 1,603 1,425 1,509 1,583 1,693 2,054 Jan.-/ Feb. 2/ 1,701 1,715 1 482 577 725 581 708. 684 697 527 728 . 514 835 558 827 776 838 587 881 627 890 693 934 759 1,240 814 937 975 772 740 TOTAL UNADJUSTED TYP E OF FINANCING FHA VA OTHER BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE)2 66.4 74.-3 114.7 128.4 125.0 135.2 140.8 128.7 130.9 140.9 126.9 119.9 16.5 17.5 25.2 32.4 37.1 40.7 43.4 34.1 34.3 40# 33.7 63.2 3.4 3.9 4.8 5.4 5.2 5.1 5.3 5.6 5.3 5.8 5.5 5.7 46.5 52.9 84.7 90.6 80.8 89.4 92.1 87.7 91.3 94.7 87.2 51.0 1,050 1,119 1,085 1,177 1,309 1,285 1,309 1,378 . 1,388 1,523 1,487 1,768 109.1 99.6 32.3 4.6 . 72.2 1,635 1,622 Total starts are Census estimates including farm for both permit-issuing and non-issuing areas. A dwelling unit is started when excavation begins; a%l 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 when14a 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 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 place's. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per month, as well as other differences in timing and coverage. 23 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES 2 DATE 30-YEAR J V ICi/UV CONVENTIONAL MORTGAGES 3 1 NEW SPREAD BE- '| TWEEN YIELDS j Aaa CORON C0NV. & 1 P0RATE BONDS FHA MORT- • 1 . 4 GAGES 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 1970 - High Low . 9.29 8.40 8.60 8.30 -.10 -.74 1970 - Oct. Nov. Dec. 8.97 8.90 8.40 8.50 8.45 8.30 1971 - Jan. Feb. __ 7.95 7.75 1 2 3 4 -.47 -.45 -.10 ! 6.79 6.15 8.75 6.91 1.20 .26 1.08 -.13 9.11 7.80 .01 8.63 8.34 7.80 .34 .56 .60 7.24 7.28 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. Dashed lines indicate periods of adjustment to changes in contractual interest rates. Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities. Beginning with April 1960, rate relates only to new-home mortgages; prior to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series. See note for Table 1. •' I VI 24 TABLE 17: Conventional Mortgage Terms DATE 1 NEW HOMES CON- FEES & TRACT CHARGES EFFEC- MATURITY RATE (PER TIVE (YEARS) (PER CENT) RATE 3 CENT) 2 LOAN/ PRICE LOAN RATIO AMT. (PER ($000) CENT) 4 EXISTING HOMES CON- FEES & LOAN/ TRACT CHARGES EFFEC- MATU- PRICE (PER RATE TIVE RITY RATIO (PER CENT) RATE (YEARS) (PER CENT) CENT) 2 3 LOAN AMT. ($000) 4 8.16 8.23 8.29 8.24 8.28 8.31 8.32 8.35 8.31 8.33 8.26 8.20 1.08 1.09 1.11 1.02 0.98 0.99 1.01 0.98 1.03 1.05 0.99 1.07 8 .34 8 .41 8,.47 8,.41 8,.45 8..48 8..49 8.,52 8.,48 8.,51 8.43 8.38 25.0 24.2 25.0 24.8 25.3 25.1 25.1 24.8 25.2 25.1 25.3 25.8 69.3 71.8 71.1 71.3 71.7 71.3 71.5 71.6 72.7 72.4 72.1 73.8 25.1 24.9 25.1 24.5 25.3 25.6 24.9 25.5 25.3 24.8 25.2 25.8 8.13 8.23 8.26 8.19 8.18 8.19 8.21 8.25 8.27 8.20 8.18 8.12 0.94 1.02 0.98 0.90 0.94 0.98 ' 0.95 0.89 0.88 0.88 0.85 0.85 8.29 8.41 8.43 8.34 8.34 8.36 8.37 8.41 8.42 8.35 8.32 8.26 22.4 22.4 22.6 22.7 22.8 23.0 23.1 23.1 22.8 22.8 22.7 23.3 20.5 20.4 20.6 20.4 21.1 21.5 21.7 21.4 21.0 20.5 21.1 21.7 8.03 7.75 0.92 1.01 8 .18 7 .92 25.8 26.3 73.3 74.0 26.4 26.6 7.94 7.67 ,0.82 0.78 8.08 7.80 23.5 24.0 1970 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 70.3 70.2 70.4 70.2 70.3 71.5 71.5 71.7 71.7 71.5 71.5 71.9 . ' : > 1 . 1971 Jan. FebX | 72.5 73.2 22.0 22.5 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 home.s. Data exj elude loans for refinancing, reconditioning or modernization; construction loans to I 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-i.n 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. Derived by FRB. ^ -1 ? ^ ; i ^ I | j. ; ,
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