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DECONTROLLED AFTER SIX MONTHS
L . 5 . 8 Confidential ( F . R . )

M a r c h 26, 1973

CAPITAL
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
Capitol Market Yields
Capital Market Volume
Stock Market
Mortgage Market

SYMBOLS:
e

Estimate

p

Preliminary

r

Revised

n.a.

Not available




T A B L E 1: Yields, Volume and Reception

WEEK ENDING:

1973 - Feb.

2
9
16
23

Mar.

2
9
16
23
30

WEEK ENDING:

YIELDS
MOODY'S
SEASONED
1
NEW ISSUE
Aaa
7.38
7.20
7.22
7.46
7.23
7.34
7.22
—

7.52
7.50
n. a.

7.25
7.27
7.29
7.31

....

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

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS
179
99
n. a.
245
99
n.a.
234
n.a.
75
99
nr. a.
70
20
234
270
465
130e

100
88
84
100
n.a.

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

MUNICIPAL BOND MARKET
VOLUME 2
GROSS
OFFERINGS

1973 - Feb.

2
9
16
23

5.00
5.05
4.85
4.90

5.16
5.16
5.06
5.13

451
493
307
277

Mar.

2
9
16
23
30

5.00
5.05
5.10
5.10
n.a.

5.22
5.27
5.34
5.35
n.a.

366
483
631
703
385e

PER CENT
SOLD BY END
OF WEEK
83
83
85
60
77
78
82
81
n.a.

BONDS SCHEDULED
WITHIN 28 DAYS
575
586
712
882
1,552
1,419
1,344
1,043
n.a.

New series derived by adjusting to a Aaa utility basis, new issues of publicly-offered
corporate bonds with call protection, rated A, Aa, or A a a 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
DAT E
OFFERED

AMOUNT'
(MIL. $)

3/15

OFFERED

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

30.0

DATE
| RELEXSED

Trailmobile Finance

AMOUNT

7 7/8

ISSUER

7.95

COUPON

ORIGINAL
YIELD

10 yrs

ESTIMATED PROPORTION SOLD
75%

INCREASE RATING AND ESTIMATED PROIN YIELD CALL PR0T. PORTION RELEASED

INVENTORIES 1
MUNICIPALS
IN SYNDICATE
1973 - Feb.

23

814

155

Mar.

2
9
16
23

789
746
740r
707

104
126
142
168

CORPORATES
IN SYNDICATE
128
0
27
44
5e

N.C. - No call protection.
1

fi

vhich

R l i r u S i n millions of dollars. Blue List is daily average for week ended Fridav, except for latest
daily . verape of three days ended Wednesday. All other figures are as of Friday.
1




TABLE 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

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)

6.19 (4/14)

7.05 (12/8)

5.74 (11/17)

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

1973 - High
Low

7.52 (3/16)
7.29 (1/12)

7.31 (3/23)

6.95 (3/23)

7.11 (1/5)

6.42 (1/5)

5.35 (3/22)
5.03 (1/12)

7.25
7.27
7.29
7.31

6.90
6.91
6. 95r
6.91

5.22
5.27
5.34
5.35

1973 - Mar.

l

2
9
16
23

--

7.52
7.50

New issue. Aaa utility, 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
CORPORATE 1

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

4,042
3,300
4,375

July
August
September

3,582
2,893
2,720

4,147
2,532,
3,768

October
November
December

3,791
3,377
3,396

January
February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

2,235
2,175e

1973

1972

1971

1,776
2,005
2,239

2,732
1,851
2,258

1,989
2,017
2,270

1,891
2,167
2,013

1,805
1,966
1,726

•1,989
1,903
2,098

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

1,902
i;410e

:

1

1
2

STATE AND' LOCAL 2

|

1
Securities and Exchange Commission estimates of gross proceeds.
.Investment Bankers Association of America estimates of principal amounts.




TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

QUARTER
OR
MONTH

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND
BONDS
ISSUES INCLUDED
PUBLICLY PRIVATELY PFD.
MFG.
FOREIGN
CONVERTIBLE
PLACED
STOCK
OFFERED

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

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

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

1,593
2,781
1,867
3,147

2,851
3,798
3,136
3,258

74
245
57
245

511
449
83 6
428

1,525
2,109
1,629
1,398

2,261

1972 - Jan.
Feb.
Mar.

3,205
3,369
3,229

1,767
1,907
1,677

604
412
577

834
1,041
976

59
12
3

195
83
233

392
529
604

Apr.
May
June

3,275
3,598
4,341

1,622
1,676
1,336

789
744
1,218

864
1,148
1,786

15
100
130

92
226
131

July
Aug.
Sept.

3,582
2,893
2,720

1,807
1,523
863

657
421
789

1,118
948
1,070

3
17
37

Oct.
Nov.
Dec.

3,791
3,377
3,396

1,773
1,361
1,024

564
982

1,601

1,454
1,034
770

2,235
2,175

989
625

195
700

1,050
850

*1972" - I
II
III

iv

1973 - Jan.
Feb.S

1

OTHER

2,934

1,476
1,369
856
1,079

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

533
988
740

752
498
227

1,529
1,354
1,658

581
761
767

1,219
738
1,538

178
391

1,297

800

1,235

450
183
203

574
452
603

798
635
1,247

586
237
33

1,624
1,568
838

28
124
93

162
171
95

383
426
589

1,280
860

794

371
658
50

1,757
1,499
1,895

14

79
10

138
250

896
850

31
100

1,168

Other issuers arc extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are avail-




COMMUNICATIONS

3,495

2,680

1,708

975

/

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury) 1

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
Texas Eastern Transmission
Southern Bell Tele & Tele Co
Indianapolis Pwr & Lt.
ACF Industries, Inc.
Niagara Mohawk Pwr Corp
Indianapolis P & L- Co.
Northern Indiana P.S.
S&P Intercapital Income Sec.
Federated Income & Private Plac.
Fund




TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

Com stk
(rts)
125.0
35.4
Pref stk
Bonds
20.0
Bonds
40.0
20.0
Bonds
Debs
60.0
30.0
Bonds
Bonds
50.0
25.0
Bonds
Bonds
45.0
25.0
Bonds
30.0
Bonds
Bonds
25.0
75.0
Bonds
Notes
25.0
81.8
Com stk
88.5
Com stk
60.5
Pref stk
60.0
Bonds
Debs
350.0
1st mtge
30.0
20.0
Eq tr.
46.9
Com stk
Com stk
17.6
30,0
Pref stk
175.0
Com stk
Com stk

16.6

MATURITY

--

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

March 1
COUPON
RATE OR
OFFERNET INTERING
EST COST
YI ELD

March 23 1973
MOODY':
RATING

--

--

--

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

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

--

——
—-

Baa
Ba
---

A
——
--

A
--

--——

1979-2003
2013
2003
1988

--

7.70
8.10-8.50
7 5/8
7.65
7.95
•-

—

——

——

7.64
8.10-8.50
7.63
7.65
7.95

——

Ba
Aaa
Aa
A
--

7.50

—

-—

---

-—

7.29

——

--

--

-—

--

--

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

ISSUER
U n i v e r s i t y of Kentucky
Vermont
St. P a u l Ind. Sch. Dist & 625,
Minn.
Hempstead, N.Y.
Huron V a l l e y Sch D i s t , M i c h
P a s c o Co-Wide Sch D i s t , F l a
M a r y l a n d , State
M a s s Home F i n a n c e Agency
M i a m i , Fla.
K e n t o n , Co. Airport Bd Ky.
S a n A n t o n i o , Tex
S o m e r s e t C o . , N.J.
C h i c a g o P a r k D i s t . , 111
W a s h o e C o S / D , Nev.
Washington
Penna Higher Ed Fac. Auth
M o n t g o m e r y Co. M d .
H e n d e r s o n , Ky.
H e n d e r s o n , Ky.
M a s s H e a l t h & Educational
F a c . Auth
M a s s H e a l t h & Educational
Fac. A u t h
M a s s H e a l t h & Educational
Fac. Auth
New York State
P i t t s b u r g h , Pa.




TYPE 2
Rev-ref
G.O.

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

M a r c h 1 through M a r c h 2 3 r 1 9 7 3
COUPON
I
RATE OR
| OITKR- M O O D Y ' S
N E T INTER- !
II.c
RATING
EST COST
1 VILLI)

31.0
30.0

1982-1999
1974-1992

5.74
4.85

4.90-5.70
3.90-5.15

A
Aa

26.7
G.O.
13.5
G.O.
17.0
G.O.
15.9
G.O.
100.0
G.O.
Rev.
43.4
28.4
G.O.
Airport rev 2 2 . 0
Rev.
14.0
10.1
G.O.
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.?n

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

5.60

A-l

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

-—

--

A

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

AMOUNT
(MIT-LIONS
ISSl'LK

King C o , Wash
Dallas, Texas

TYPL

i

P u e r t o R i c o W t r Res. Auth
C o l o r a d o Springs S/D 11 El Pasco
C o . , Colo.
F l o r i d a State Bd of Ed
Baltimore, Maryland
Baltimore, Maryland
California
West V i r g i n i a
T u c s o n , Ariz
Santa C l a r a Co. Fac CorpjCal.
HUD
Other
F a r m e r s Home Admin.
F a r m e r s Home Admin

2

OF
DOLLARS)

G.O.
Rev.

27. 9
28. 0

Rev.

M a r c h 1 through M a r c h 23
1973
COUPON
r
RATE OR
MOODY'S
M-TKR M A T U R I T Y N E T INTERI.;
I<
RATING
EST C O S T
1 VILLI)
1975-2013
1974-1993

5. 45
5. 03

4.30-5. 60
4. 00-5. 5 0

A-l
Ad

5. 95

4. 50- •

A

75. 0

1975-1907

G.O.
Rev.
G.O.
G.O.
Rev.
G.O.
Rev.
Rev.
Bonds

14. 9
30. 0
1.
,9
28.,5
10.
.0
40.,0
10.
,0
23,
.0
310. 5

1974-1983
1973-2002
1974-2003
1974-1999
1983-1998
1974-1998
1974-1980
1976-2002
1973-2013

Notes
Notes

300,.2
2 0 0 .9

1978
1988

•-

5. 41

'

5. 21
5. 12
5.16
4. 8 0
5. 72
5. 25
7. 2 0
7. 5 0

4. 00-4. 8 0
3.
.80-5. 53
4.
,20-5. 60
4.
,20-5. 85
4,
.60-5..25
4.
,00-5. 3 0
• 4. 10-4.
,
,75
4,
.60-5..75
4.
.00-5.,35
7.20
7.58

*

Nights

1

Includes corporaLc 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;
'<ev. -Ut. , revenue obligations secured only by income from public utilities;
Rev. -Q. - lit. , revenue bonds secured only by income from qua si-utilities; Kev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
In'cludes foreign government and International Bank for Reconstruction and
Development issues and non-qu.aranteed issues by Federal Agencies.

2

3

offering.




Aa
Aa
A
A
Aaa
A-l
A-l
A
Aaa
--

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
AS

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

American Tele & Tele Co
Investors Realty Trust
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
Petrolane Inc.
Philadelphia Electric
Louisville G&E
Commercial Credit Corp
Cabot, Cabot & Forbes Land Tr.
Connecticut Light & Power
Metropolitan Ed.
Philadelphia Electric
| Baltimore Gas & Elec.
*Bell Tele of Pa.
j *Washington Water Pwr Co
*Tuscon G&E
*San Diego G&E
*Tuscon Gas & Elect
*GTE of Michigan
*Mid-Continent Tele Corp
NJB Prime Investors
! Tenneco
1
Wickes Corp
Union Commerce Corp
*Toledo Edison
*Hartford Elect Co.

Pref stk
Bonds
Sr. debs
Com stk
Com stk
Pref stk
Bonds
Bonds
Bene int.
Com stk
Com stk
Com stk
Pref stk
Pref stk
Bonds
Bonds
1st mtge
Pref stk
Com stk
Com stk
Bonds
Bonds
Pref stk
Pref stk
Bonds
1st mtge
Pref stk
Bonds
Bonds
Bonds
Bonds
Com stk
Bonds

500.0
15.0
40.0
87.5
184.5
20.0
35.0
25.0
15.5
15.5
20.0
35.4
75.0
21.5
50.0
25.0
50.0
25.0
48.4
45.0
175.0
20.0
15.0
30.0
35.0
20.0
18.0
25.0
100.0
50.0
20.0
22.5
40.0

*General Public Utilities
Walter Kidde & Co
Continental Illinois Corp
Arrow Investment L&D

Com stk (rts)
Debs
Bonds
Bene Int.

83.0
65.0
100.0
20.0




'

of March 23. 1973
APPROXIMATE DATE
OF OFFERING
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr..
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
May
May
May
INDEF
INDEF
INDEF

27
27
27
27
28
28
28
29

2
3
3
4
5
12
17
21
24
24
25
25
25
26

1
2
3

11

12

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)

ISSUER

TYPE

State and Local
San Francisco, Calif.
Washington
Maine
Penna, State of
South Carolina
Jordan S/D, Utah
Los Angeles Dept. of Airport
Pensacola, Fla
Prince Georges' Co. Md.
Los Angeles Reg Airports Corp,
Calif
Lacygne, Kan
Gulf Coast Waste Disposal Auth
Tex.
Jacksonville Elec Auth, Fla
Tacoma, Wash
•Connecticut, State of
.Buffalo, N.Y.
•'Orange Co, Fla
Ohio
Memphis, Tenn.
•Wisconsin
New York, N.Y.
Los Angeles Co, Calif Flood
Control Dist.
Sacramento Muni Ut. Dist. Calif
New Mexico
• New Orleans, La
Los Angeles Calif Dept of Wtr
& Pwr.

*
1
2

AMOUNT
(MILLIONS
OF
DOLLARS)

&s

o f

M a r c h

2 3 , 1973

APPROXIMATE DATE
OF OFFERING

35.8
G.O.
10.0
G.O.
21.5
G.O.
140.0
G.O.
47.5
G.O.
20.0
G.O.
Rev.
20.0
Rev.
12.5
Poll, cont rev 25.0

March
March
March
March
March
March
March
March
March

Rev.
Rev.

25.5
30.0

March
March

25.0
45.0
24.3
68.0
22.9
10.8
40.0
25.0
36.5
300.0

March
Apri1
April
Apri1
April
April
April
April
April
April

3
4
4
4
5
5
10
10
11

G.O.
Elec Rev.
G.0.& Rev
G.O.

22.0
50.0
12,0
18.0

April
April
April
May

17
18
20
16

Rev.

47.0

June

Rev.
Rev.
lgt & pwr ref
G.O.
G.O.
Swr-rev
G.O.
G.O.
G.O.
G.O.

26
26
27
27
27
27
28

6

Included in table for first t i m e . .
Includes corporate and other issues of 515 million and over; State and local
Government issues of S10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.




13
Table 8

STOCK PRICES AND VOLUME
TRADING VOLUME 2 '

STOCK PRICES 1 '
DATE
NYSE INDEX 3 -

D J . INDUSTRIALS

NYSE

AMEX

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

6.7 (2/5)
2.7 (8/13)

AMEX *

1971 - High
Low

57.76 (4/28)
48.73 (1/4)

1972 - High
Low

65.14 (12/11) 1036.27(12/11) 28.53 (4/14)
8 8 9 . 3 0 (1/3)
25.61 (1/3)
56.23 (1/3)

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

7 . 4 (3/10)
2.6 (9/8)

1973 - High
Low

1051.70 (1/11) 26.75 (2/2)
65.22 (1/5)
59.03 (3/23) 922.17 (3/23) 24.38 (3/23)

2 0 . 4 (1/12)
14.2 (3/16)

4.8 (1/12)
2.7 (3/16)

17.2
16.0
14.2
15.5

4.0
2.9
2.7
3.1

1973 - M a r .

2
9
16
23

950.82 (4/28) 26.68 (4/28)
797.97 (11/23 )22.72 (1/4)

961.32
972.23
963.05
922.71

60.17
61.02
60.75
58.15

24.68
24.88
24.71
24.17

NOTES:
1.

Figures other than highs and lows are Fridays only.
Highs and lows are for the year and are not necessarily for Fridays.

2.

NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Volume figures are daily averaged for the entire week. (millions of shares).
Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or
In recent years, however abbreviated trading to the extent, and over the time
Hours/
Days/
From
Through:
Day
Week
January 3, 1969.
July 7, 1969
January 2, 1970

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

-

2

27-1/2 hours per week.
periods, shown below:
Hours/
Week
0
22-1/2
25

xu
TABLE 9: Security Credit

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

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS 1~]~ BANKS 2 j TOTAL'

CUSTOMERS'
NET DEBIT
BALANCES

MET CREDIT
CUSTOMERS' NET EXTENDED BY
BROKERS AND
FREE CREDIT
DEALERS 3
BALANCES

2,440

10,350
10,560
10,630
10,660
10,750
10,340

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

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)

7,700

2,910

10,610

--

2,296

--

Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

300
480
440
390
190
310
150
120
20

50
20
10
10
30
90
50
90
50
30

90
10

-420

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

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

. Jan.

-200

470

270

21

1973 - Jan.

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

8,190
8,690
9,140
9,540
9,760

10,160

Outstanding

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 ^ c u ritics 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 bv the New YorV
Stock Exchange and are end of month data. Bank loans are for weekly icporting
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.
Series discontinued




TABLE 10: Savings Flows at Nonbank Depositary Intermediaries
($ millions)
MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
NEW
ANNUAL
MONEY 2
GROWTH
NET
1
FLOW
RATE

SAVINGS & LOAN ASSOCIATIONS
NET
SHARE CAPITAL
NEW
ANNUAL
NET
MONEY 2
GROWTH
1
FLOW
RATE

1969
1970
1971
1972

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

4.0
6.8
13,5
12.0

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

1971 - December
1972 - January
February
December

1,209
855
931
1,224

——

1973 - January^./
February 6./

785
525

---

1972 - September
October
November
December

939
779
720
793

12.8
10.5
9.7
10.5

1973 - January^/
February^./

827
439

10.9
5.7

DATE

1
2
3

--

--

-763
936
5,678
5,397
325
716
809
294

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

n.a.
n.a.

3,000
1,650

-r

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

--

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

—

n.a.
n.a.

3,785
2,175

--

n.a.
n.a.

Seasonally Adjusted
-2,930
17.8
. ——
.
2,706
16.2
——
2,246
13.3
2,149
12.6
--

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

16.3
14.5
12.2
12.0

3,748
1,580

4,575 •
2,019

18.4
8.0

-f
--

21.3
9.0

——
——

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.




TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

V

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

1
|
TOTAL

.

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

.

(Billions of Dollar 3, Seasonally Adjusted)r/

Nov.
Dec.

16.6
16.6

13.2
13.1

3.4
3.6

.20
.09

08
-.06

.12
.15

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

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
1.01
.93
.69
.96
-.18
.30
.76
.89
-.25
.34
-.20

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

1

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 INSTI TUTIONS
LIFE
MUTUAL
TOTAL £/
SAVINGS &|
INSURANCE
SAVINGS
INCLUDING TOTAL | COMMERCIAL
LOAN
FNMA-GNMA
BANKS
BANKS
ASSOC.
| COMPANIES

I

Not Seasonally Adjusted

g
s

&
i
I

24
54
79
97
90
139
255
1,112

284
37
164
368
137
95
130
132

n. a .
.
n« c «
i
Seasonally Adjusted

n. a.

n. a.

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

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

1,500
1,600
1,500
1,600
1,400
1,400
1,500
1,000

1973 - Jan.

n.a.

n.a.

1,000

1971 - Dec.

4,371

,118
4j

862

524

,367
2,

365

1972 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

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

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

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

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

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

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

1973 - Jan.

n.a.

n.a.

1,212

n.a.

n.a.

n.a.

2

2,508
4,375
4,909
2,388

2 ,720
3 ,453
2:
,758
,313
3;
,926
2.
,673
2.
2 ,712
3 ,101

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

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

1

1
|

£,459
2,052
2,348
1,221

21 ,273
19 ,699
16 ,827
39 259

1972 - May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1

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

23,781
24,074
21,736
41,647

1968
1969
1970
1971

F.:MA-GXMA

454
585
438
553
502
472
517
598

253
206
278
135
36
387
116
147
292
34 .
- 24
70
96
n.a.

Monthly data for commercial banks based on Federal Reserve estimates benchmarked
to Call Report data on real estate loans outstanding as available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual
savings banks and for Life Insurance companies may differ somewhat from those
derived from regular quarterly series because of minor conceptual differences for
which adjustments are not made in the monthly series. Altogether, these groups
accounted for 87 per cent of the net increase estimated for all holders in 1967.
Beginning January 1972 data reflect activity in limited amount of conventional
mortgages.




18

T A B L E 13:

Net Increases in Mortgage Debt O u t s t a n d i n g
Billions
1-

1968

to 4 -

- I

TOTAL

RESIDENTIAL3

FAMILY

27.9

QUARTER

1

of d o l l a r s , S A A R -

19.4

'MULTI-

16.2

MULTI-AND

FAMILY

COMMERCIAL

3.1

COMMERCIAL

6.4

FARM

9.4

2.3

II

26.4

18.2

15.0

3.2

6.0

9.2

2.2

III

25.6

17.3

13.6

3.5

6.5

10.2

1.8

3.9

7.4

11.2 „

1.9

IV

29.9

20.4

16.5

31.7

23.8

19.4

4.4

6.0

10.4

2.2

I I

29.1

21.5

16.8

4.6

5.4

10.1

2.2

I I I
IV

25 .7
25.6

18.7

14.0
13.1

4.7
5.4

5.3

10.0

1.7

5.3

10.7

1.4

4.8

9.8

4.6

9.9
11^4

1.5
1.5
2.1

- I

1969

1970

- I

18.5

20.9

14.4

II

22.8

III

2 8 .3

16.8
21.3

5.0

32.2

- I
II

22.8

16.2

5.2
6.3
6.6

37.7

IV
1971

9.4
11.6
15.0

27.3

19.2

8.0

47.4

.
6.8

13.4

2.2

8.1

16.0

2.2

1972

36.0

26.5

9.4

9.5

19.0

2.3

III

52.3

38.9

30.1

8.8

11.1

19.9

2.3

IV "

54.9

40.7

31.9

8.9

11.0

19.9

2.5

61.8

45.4

35.9

9.5

14.5

23.9

2.6

- I
II

64.1

37.5

9.6

15 .2

24.6

2.6

64.3

46.4

36.2

10.2

14.9

25.3

2.9

IV

1

4 7 .1

III

67.2

49.1

39.4

9.8

14.6

24.3

2.6

Derived

from d a t a

Corporation,

on n o r t g a g e

debt

Federal Home Loan

tional A s s o c i a t i o n

of M u t u a l

outstanding

Bank

Savings

Board,
Banks,

•

from

Institute

Federal D e p o s i ^ I n s u r a n c e
of L i f e

Departments

Insurance, Na-

of C o m m e r c e a n d A g r i -

culture, Federal National Mortgage Association, Federal Housing Administration,
V e t e r a n s A d m i n i s t r a t i o n a n d C o m p t r o l l e r o f the C u r r e n c y .
S e p a r a t i o n of n o n tarm m o r t g a g e
jind

debt

extrapolations,

by

type

where

of p r o p e r t y ,
required,

w h e r e not

2

May differ somewhat
a b r o g a t i v e type of

3

Residential m o r t g a g e debt includes nonfarm
and n u l t i f a m i l y m o r t g a g e debt c o m b i n e d .




available,

estimated mainly

f r o m r e l a t e d flow o f
seasonal adjustment.

funds

by

and

Federal

interpolations
Reserve.

series mainly because~of more

only and

is

sum

of

1-to 4-

family

TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS
IMPLICIT YIELD 2 (per cent)
ACCEPTED
TOTAL
90TOTAL
1-YEAR"
6901-YEAR 1
6OFFERED
DAY
MONTH & OVER
DAY
& OVER
MONTH
352.8
211.5 211.5
7.70
271.2
224.9 224.9
7.73
—
—
186.4
162.7 162.7
7.74
-—
--

Oct.

2
16
30

Nov.

13
27

78.7
60.8

49.2
36.2

49.2
36.2

Dec.

11
26

82.2
108.7

42.4
66.3

42.4
66.3

Jan.

8
22

74.2
107.0

61.3
92.1

61.3
92.1

Feb.

5
20

128.7
110.3

65.4
71.6

65.4
71.6

Mar.

5
19

170.8
297.3

107.7
168.7

107.7
168.7




__

-—

—
—

__

__

7.72
7.70
7.68
7 • 69

---

—
—

__

7.69
7 • 70

—

—

-__
--

--

7.71
7.73
7.75
7.81

Note: Average secondary market yields are gross — before 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
TABLE 15: Private Housing Starts and Permits
STARTS

DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

UNADJUSTED
TYP: OF FINANCING
E
FHA VA
OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2

2 - January
2 ,439
February 1 2
,540
March
2 ,313
2 ,204
April
2 ,318
May
2.
June
,315
July
2.
,244
August
2,
,424
,426
September !2.
2J
October
,446
November .2a,395
December
2.
,369

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

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

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

36.1 7.5
27.8 8.0
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

3 - January
February

1,449
1,361

1,047
1,083

147.1
138.8

12.0

126.3

2,218
2,155

j 2,
,496
2.
,444

6.8
6.8

1

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 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
FHA
MORTGAGES
30-year

2

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 5

1

NEW
ISSUE
Aaa
UTILITY
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.
MayJuly
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

Jan.
Feb.

7.55
7.56

7.70
7.75

.15
.19

7.38
7.40

.32
.35

1973

1

2

3

4
5
6

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 and—beginning July 1961--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.
&ased 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.




I
22
TABLE 17: Conventional Mortgage Terms

1
11

DATE

1
| LOAN/
CON- FEES &
TRACT CHARGES EFFEC-I MATURITY | PRICE LOAN
1
ilATIO AMT.
RATE
(PER
TIVE | (YEARS)
1 (PER ($000)
CENT) RATE |
(PER
CENT)
CENT)
2
3
1

1

EXISTING HOMES
CON- FEES &
I.OAN i
TRACT CHARGES EFFEC- ! MATU- I PR 1 CI' i
LOAN
(PER
RATE
TIVE
RITY RATIO j AMT.
CENT) RATE (YEARS) (PER | (S000)
(PER
CENT)
CENT) 1
2
3

1972
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

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
27 .2
27 .2
.2
27,
27,
.2
27.
.2
27.
.5
27.
,3
,2
27.
27.
,5
27. 5

75 .0
76 .5
76 .2
76,
.0
.2
76,
76.
.5
.0
77.
,5
77.
77.
,5
77. 3
77. 3
78. 0

.6
27.
27,
.8
28,
.2
28,
.5
28.
.5
27.
.8
28.
,2
27. 9
27. 9
27. 4
28. 0
29. 1

.45
7.
7 .35
.31
7,
7 .30
.33
7,
.36
7.
7.
.37
,39
7.
,42
7.
,43
7.
,44
7.
7. 45

0.
.82
0 .79
0,
.77
0,
.78
0.
.77
0.
.78
0.
,83
0. 81
0. 83
0. 84
0. 84
0. 86

.58
7,
7 .48
7 .44
7 .42
7 .46
.49
7,
.50
7,
,52
7.
,55
7.
7.
,57
7. 58
7. 59

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

1973
Jan. r/
Feb. j>/

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

26. 1
26. 4

77. 0
77. 4

25.6
25.4

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 uxctiidg 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-i n 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.




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