Full text of H.16 Capital Market Developments : March 26, 1973
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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 .1 verape of three days ended Wednesday. All other figures are as of Friday. 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 • -—— 1979-2003 2013 2003 1988 March 1 COUPON RATE OR OFFERNET INTERING EST COST YI ELD — 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 -- -- 7.70 8.10-8.50 7 5/8 7.65 7.95 •- -- March 23 1973 —— —- Baa Ba --- A —— -- A -- -- — —— —— 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 INTERII.<; 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« ci« 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 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 1973 - Jan. n.a. n.a. 1,000 1971 - Dec. 4,371 4j,118 862 524 2,,367 365 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 3,,250 ,550 3j 4j,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 1,164 290 315 464 400 453 516 472 515 537 484 513 525 1.,871 2,,075 2,,596 2,,481 ,567 2j 2,,959 2,,678 3 j,108 2,,911 2, 726 ,876 2j 3,,130 -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 3;,313 2.,926 2.,673 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- QUARTER 1968 - I 19.4 16.2 MULTI-AND FAMILY COMMERCIAL 3.1 COMMERCIAL 6.4 FARM 9.4 2.3 18.2 15.0 3.2 6.0 9.2 2.2 17.3 13.6 3.5 6.5 10.2 1.8 3.9 7.4 11.2 „ 1.9 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 18.5 20.9 14.4 II 22.8 III 2 8 .3 16.8 21.3 - I II 9.4 11.6 15.0 5.0 32.2 22.8 16.2 5.2 6.3 6.6 37.7 27.3 19.2 8.0 47.4 . 6.8 13.4 2.2 8.1 16.0 2.2 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 1 27.9 'MULTI- 26.4 IV 1972 FAMILY 25.6 - I 1971 RESIDENTIAL3 II IV 1970 to 4 - TOTAL III - I 1969 1 of d o l l a r s , S A A R - 64.1 4 7 .1 37.5 9.6 15 .2 24.6 2.6 III 64.3 46.4 36.2 10.2 14.9 25.3 2.9 IV 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:E OF FINANCING 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.,315 June July 2.,244 August 2,,424 September !2.,426 2 J,446 October 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 27,.2 27,.2 27..2 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 0 .79 0,.77 0,.78 0..77 0..78 0.,83 0. 81 0. 83 0. 84 0. 84 0. 86 7,.58 7 .48 7 .44 7 .42 7 .46 7,.49 7,.50 7.,52 7.,55 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 75.,6 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.
@FedFRASER