Full text of H.16 Capital Market Developments : March 6, 1972

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L.5.8 Confidentiol (F R )

DECONTROLLED AFTER SIX MONTHS
—

March 6, 1972

r?;n

/wjfM

CAPITAL
MARKET
DEVELOPMENTS

Ceitel
M

Section, O m « * n •«

.1 G . w m « . .« * •




» ' *«*.«<».
S

»"—'

D. C

INDEX

3-5

D e v e l o p m e n t s in the Corporate and Municipal Bond Markets

6-7

Capital Market Y i e l d s

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:

e

Estimate

p

Preliminary

r
n o.

Revised
Not a v a i l a b l e




T A B L E 1: Y i e l d s , Volume and Reception
C O R P O R A T E BOND M A R K E T
W E E K ENDING:
NEW
1972

YIELDS
MOODY'S
SEASONED
1
ISSUE
Aaa

GROSS
OFFERINGS

VOLUME 2
PER C E N T
SOLD BY END
BONDS S C H E D U L E D
OF W E E K
W I T H I N 28 DAYS

- Feb.

4
11
18
25

7.22
7.30
7.10
7.11

7.25
7.29
7.28
7.26

285
655r
560r
223

77
79r
69r
70

Mar.

3
10

7.16

7.25

409
225e

98
n.a.

YIELDS
WEEK ENDING:

1972 -

Feb.

4
11
18
25

Mar.

3
10

MOODY'S
SEASONED

BOND BUYER
S E A S O N E D 20
B O N D INDEX

n.a.

M U N I C I P A L BOND M A R K E T
VOLUME2
GROSS
OFFERINGS

PER C E N T
SOLD BY ENDOF W E E K

BONDS SCHEDULED
W I T H I N 28 DAYS

5.10
5.00
5.00
4.95

5.35
5.27
5.24
5.28

214
667
380
464

87
84
80
81

1,098
1,080
1,504
1,560

5.00

4.29

481
63 7e

86

1,071

1 Derived by a d j u s t i n g to a A a a b a s i s , new issues of-publicly-^offered corporate b o n d s
with call p r o t e c t i o n , rated A , A a , or A a a by M o o d y ' s Investors Service (except serial
and c o n v e r t i b l e issues, offerings of natural gas pipeline and foreign companies, and
bonds guaranteed by the Federal G o v e r n m e n t . )
2 M i l l i o n s of dollars unless otherwise indicated.
Note:

Sc-e footnotes to T a b l e 3




TABLE 2: Details on Inventories

DAT!:
OFFERED

i
|

:•

25. 0
25. 0
50.,0
, 25,,0
22.'.5
30..0

2/24
2/24
2/23
2/29
3/11
3/11

DATE
OFFERED
| RELEXSED
2/23
2/15
2/15

2/28
3/1
3/1

DATE
1972

- Feb.

4

11
18
25
Mar.

C O R P O R A T E BONDS IN SYNDICATE END OF LATEST W E E K
ORIGINAL
RATING AND
ISSUER
YIELD C A L L PROTECTION
COUPON

AMOUNT
(MIL $ )

3

G e n ' l Tele of W i s e
F i r s t N a t ' l B a n k of Ore
No States Pwr
Union Commerce . ^
Midland Enterprises
C o u s i n s M t g e & Re. T r

7.50
7.52
6.75
6.83
7 3/8
7.35
7 7/8 - -'7.88 ... 7 7/8
7.90
.
6 1/2
6.50

A
NR
Aa
MR
-Baa
NR

5
7
5
.10
"" 10
10

ESTIMATED PROPORTION SOLD

yrs
yrs
yrs
yrs
yrs
yrs

70%
75%
90%
98%
75%'
98%

C O R P O R A T E BONDS RELEASED FROM SYNDICATE DURING LATEST W E E K
ORIGINAL INCREASE RATING A N D
E S T I M A T E D PROISSUER
AMOUNT
COUPON
IN YIELD C A L L PROT. PORTION RELEASED
YIELD
40.0
75.0
175.0

American Credit
Pacific Tel
& Tel
Pacific Tel & Tel

INVENTORIES
MUNICIPALS
IN
SYNDICATE
BLUE LIST
96
885
147
715
134
773
170r
765r
761

140

7.95
6 5/8
7 1/4

7.95
6.50
7.23

+7
+8
+11

NR
Aaa
Aaa

10 yrs
5 yrs
5 yrs

1

CORPORATES
IN SYNDICATE
123
147
133
194
27

;.C. - No call protection.
All figures in millions of dollars.
Blue List is daily average for vuek ended Friday, except
rhich iF daily average of three days ended Wednesday.
All other figures arc as of Friday.




15%
55%
50%

for
"

latest
v

T A B L E 3: High Grade Bond Y i e l d s

NEW
CORPORATE
Aaa1

DATE

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. G O V E R N M E N T
, 20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS

8 . 8 5 (12/26)
6 . 9 0 (2/21)

7.84 (12/26)
6.55 (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

8.60
7.48

(7/3)
(12/21)

7.55
6.17

(5/29)
(12.18)

7.12
5.33

(5/29)
(12/11)

1971

- High
Low

8.23 (5/12)
6 . 7 6 (1/29)

7.71
7.06

(8/13)
(2/12)

6.51
5.69

(6/18)
(3/23)

6.23
4.97

(6/24)
(10/21)

1972

- Feb.

11
18
25

7; 3 0
7.10
7.11

7.29
7.28
7.26

6.10
6.05
6.02

5.27
5.24
5.28

Mar.

3

7.16

7.25

6.02

5.29

1969

- High
Low

1

a

(6/19)
(12/18)

N e w c o r p o r a t e issues, w i t h call p r o t e c t i o n , a d j u s t e d (as d e s c r i b e d in
f o o t n o t e 1 of T a b l e 1) to a A a a b a s i s .
2
W e e k l y a v e r a g e of daily figures.
A v e r a g e term of b o n d s included is
22-24 years.
3
W e e k l y a v e r a g e of daily figures.
4
T h u r s d a y figures.
T h e a v e r a g e rating of the 20 b o n d s used in this index
falls m i d w a y b e t w e e n the four top g r o u p s as classified by M o o d y ' s Investors Service.
N o t e - - H i g h s and lows are for individual series and may be on d i f f e r e n t d a t e s




4

T A B L E 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
™ GROSS PROCEEDS
CORPORATE1

PERIOD -

STATE AND LOCAL
1972

1971

1970

1,^762

2,732
1,851
2,258

1,340
1,214
1,555

|
1
j

1,891
2,167
2,013

1,647
996
1,085

|

1,989
1,903

1,348
1,359

j

2,098

1,758

2,777
4,182
3,980

1,728
2,264
2,068

1,924
1,748
2,190

1972

1971

1970

3,350e

3,115
3,000
6,075

2,636
1,802
3,539

!
1

| April
: May

4,042
3,271
4,375

3,170
3,909
3,389

; July
August
September

4,147
2,532
3,768

2,768
2,274
2,518

October
November
December

3,387
3,704
3,673

January
: February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

.

1st half
T h r e e quarters
Year

1
2

12,190
11,688

7,977
10,468

10,447
10,764

8,560
11,939

6,841
6,081
5,990
6,060

4,109
3,728
4,465
5,862

23,844
34,325
45,089

18,445
27,005
38,944

12,912
18,902
24,962

7,837
12,302
18,164

S e c u r i t i e s and E x c h a n g e C o m m i s s i o n e s t i m a t e s of gross p r o c e e d s .
I n v e s t m e n t B a n k e r s A s s o c i a t i o n of A m e r i c a e s t i m a t e s of p r i n c i p a l a m o u n t s .




2

TABLE 5: New Corporate Security I s s u e s , Type of I s s u e and Issuer
(In millions of dollars)

QUARTER
OR
MONTH

TOTAL

GROSS PROCEEDS BY
T Y P E OF I S S U E
COMMON
AND
MEMO:
BONDS
P
R
I
V
A
T
E
L
Y
PFD.
ISSUES INCLUDED
PUBLICLY
PLACED
FOREIGN | C O N V E R T I B L E
STOCK
OFFERED

GROSS P R O C E E D S BY
T Y P E OF ISSUER
PUBLIC
UTILITY

COMMUNI-

MFG.

CATIONS

OTHER
ISSUERS1

1970 - IV

11,938

7,827

1,421

2,690

226

737

3,169

3,406

1,,346

4,020

1971 - I
II
III
IV

12,190
11,688
10,447

1,516
1,758
1,641
2,439

2,306
3,384
4,079
3,193

84
215
114
133

724
1,351
652
767

3,794
3,130
2,202
2,453

3,197
2,910
2,651
3,041

1,,606
896
2,,263
1;,053

3,594
4,753
3,331
4,164

10,764

8,369
6,546
4,725
5,135

1970 - D e c .

3,979

2,436

834

709

159

165

1,056

955

282

1,687

1971 - Jan.
Feb.
Mar.

3,115
3,000
6,075

2,033
2,201
4,135

594
275
647

489
524
1,293

43
3
38

99
168
557

716
661
2,417

676
1,069
1,452

391
683
532

1,332
587
1,675

Apr.
May
June

4,042
3,271
4,375

2,116
2,148
2,282

507
491
760

1,419
633
1,332

116
47
52

384
255
712

1,135
588
1,206

1,267
588
1,055

273
405
218

1,367
1,489
1,897

July
Aug.
Sept.

4,147
2,532
3,768

1,331
1,428
1,966

619
416
606

2,196
687
1,196

72
34
8

199
160
293

582
474
1,146

732
. 849
1,070

1 ,622
359
282

1,210
850
1,271

Oct.
Nov.
Dec.

3,387
3,704
3,673

1,942
2,003
1,190

723
433
1,283

723
1,269
1,201

59
62
12

222
395
150

662
811
980

933
1,217
891

432
269
352

1,360
1,408
1,450

3,560

1,760

900

900

n.a.

240

500i

550

770

1,740

197L_-_Jan.j
1

;

O t h e r issuers are e x t r a c t i v e , railroad and other t r a n s p o r t a t i o n , real e s t a t e
and finance, and c o m m e r c i a l and other.
Source:
S e c u r i t i e s and E x c h a n g e C o m m i s s i o n ,
Q u a r t e r l y s u p p l e m e n t s are available.




T A B L E 6:

Large Long-term Public Security I s s u e s for New Capital
(Other than ILS. T r e a s u r y ) 1
1972

ISSUER

TYPE2

AMOUNT
(MILLIONS
OF
DOLLARS).

MATURITY

COUPON
RATE OR
N E T INTEREST C O S T

OFFERING
YIELD

MOODY'S
RATING

Corporate
N e w Eng T e l & T e l Co
Metropolitan Edison
T e x a s E a s t e r n T r a n s m i s s i o n Corp
T e x a s E a s t e r n T r a n s m i s s i o n Corp
U n i o n C o m m e r c e Corp
GMAC
I n d i a n a p o l i s Pwr & Lt
C o u s i n M t g & E q u i t y Inv
M i d l a n d E n t e r p r i s e s Inc
Toledo Edison
Atico M t g Investors




53.5
Com stk
Pref stk
35.0
1st m t g
60.0
Com stk
42,3
Debs
25.0
Debs
200.0
Bonds
40.0
Debs
30.0
22.5
1st ship m t g
Cm stk
18.0
Debs
20.0

*—

1992
——

1997
1995
2002
1982
1992
w

1982

*» —

--

7.80

7.80

-M

7 7/8
7 1/4
7.40
6 1/2
7 7/8
--

6 3/4

--

Baa

--

--

7.88
7.31
7.40
6.50
7.90

--

Aa

--

—-

6.75

w—

--

Baa

T A B L E 6:

Large Long-term Public Security I s s u e s for New Capital (continiu d)
(Other than U.S.. Treasury) 1

TYPE2

AMOUNT
(MILLIONS
OF

MATURITY

DOLLARS)

COUPON
|
R A T E OR
: OFFER
N E T INTER- !
Il.f,
EST C O S T

J

MOODY'S
RATING

YIELD

S t a t e and L o c a l
P a s s a i c V a l l e y S w r Coram.
P a s s a i c V a l l e y S w r Coram
M i n n e a p o l i s S t . Paul M e t r o A r e a
Metro Council, Minn.
Ancharage, Alaska
M e t r o W t r Dist., So. Cal.
Newark, N.J.
Washington, State of
W a s h i n g t o n , S t a t e of
T r i b o r o u g h B r i d g e & T u n . Auth, N. Y .
Nassau Co., N.Y.
New Britain, Conn.
New Britain, Conn.
S u b u r b a n E r i e Bldg A u t h

G.O.
G.O.

7.5
16.2

1974-1991
2006

6.00
6.00

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

33.7
10.0
100.0
15.0
10.0
20.0
75.0
52.2
3.9
8.9
20.3

1975-1997
1974-1990
1983-2011&22
1973-1992
1973-1992
1973-1997
1977
1973-2002
1973-1997
1973-1992
1973-1987

4.93
5.73
5.38
--

4.73
5.30
4.19
4.92
4.98
.4.67
--

3.30-5.80
6.10
3.20-5.20
3.35-6.00
5.10-5.35
3.50-6.75
2.60-5.10
2.80-5.50&5.75
4.00
2.70-5.50
2.70-5.20
2.70-5.20
—

Baa
Baa
Aa
Baa
Aa
Baa
Aa
A
A
A
—
—
—

1
Rights offering.
I n c l u d e s c o r p o r a t e and other security o f f e r i n g s of $15 m i l l i o n and over;
S t a t e and local s e c u r i t y offerings of $10 m i l l i o n and o v e r .
In case of S t a t e and local government s e c u r i t i e s , G . O . d e n o t e s general o b l i g a t i o n ;
•<ev.-Ut., revenue o b l i g a t i o n s secured only by i n c o m e from public u t i l i t i e s
Rev.-S.T.,
R e v . - Q . - U t . , r e v e n u e bonds secured only by income from q u a s i - u t i l i t i e s
revenue bonds secured by revenue from specific t a x e s only; R e v . - R e n t . , r even vie
b o n d s secured solely by lease p a y m e n t s .
and
I n c l u d e s foreign government and International B a n k for Reconstruct!,

Development

issues and non-quaranteed




issues b y Federal A g e n c i e s .

TABLE 7:

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)
"
_ _
As of M a r c h 6. 1972

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

A P P R O X I M A T E DATE
OF O F F E R I N G

Corporates
NCNB C o r p
Chrysler Financial

Debs
Debs
Duquesne Light
P r e f stk
F i r s t B a n k S y s t e m s In.c
Debs
U t a h I n t e r n a t i o n a l Inc
Debs
Jersey Central Pwr & Lt
P r e f stk
Citizens & Southern Corp
Conv deb
Western union
Debs
San Diego Gas & Elect
P r e f stk
A r i z o n a P u b S e r v Co
Bonds
P u b l i c Svc of Okla
Bonds
W i n s t o n - S i n c l a i r Co
Debs
Columbia Gas System
Bonds
New England M u t u a l L i f e I n s . Co. D e b s
F i r s t & M e r c h a n t s Corp
Debs
Fruehauf Finance Co
Debs
Kansas Gas & Elect
Bonds
Kansas G a s & E l e c t
Pref
Omaha N a t ' 1 B a n k
Debs
B a k e r Oil. T o o l s
Debs
D u k e Pwr
Bonds
Institutional Investors Trust
C o n v debs
1st m t g e
T u c s o n G a s _& E l e c t
Conf debs
Old Stone M t g e & R e a l t y T r
Pref stk
Ohio Edison
Union Elect
C o m stk
Notes
N e w England T e l & T e l C o
Pub Svc Elect & G a s
P r e f stk
P r e f stk
Pa c i f i c G a s & E l e c t
1st m t g e
Atlantic City Elect Co
1st m t g e
N o r t h e r n I n d i a n a Pub Svc Co
Debs
N o r t h Am. M t g e I n v e s t o r s
1st m t g e
Ohio Power
Pref stk
Ohio P o w e r
Bonds
L a c l e d e G a s Co
v
Debs
A m e r i c a n E x p r e s s C r e d i t Corp
Debs
F i r s t N a t ' 1 B a n k of M i l w a u k e e
Debs
I T T T h o r p Corp
Debs
M o b i l e Oil C o r p
Debs
C o n s o l i d a t e d E d i s o n of N . Y .




30.0
60.0
35.0
70.0
15.0
25.0
15.0
70.0
15.0
60.0
30.0
35.0
50.0
50.0
25.0
50.0
25.0
15.0
15.0
20.0
100.0
30.0
25.0
15.0
36.0
55.0
100.0
50.0
50.0
20.0
50.0
30.0
25.0
35.0
20.0
70.0 '
20.0
35.0
300.0
150.0

March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
INDEF
INDEF

6
7
9
9
10
13
13
14
14
14
14
15
15
15
15
15
15
15
15
15
16
16
21
21
21
21
22
22
23
27
28
28
28
28
29

11
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(COntinUCd)

ISSUER

TYPE

10, 1 9 7 2

A s of M a r c h

AMOUNT
(MILLIONS
OF
DOLLARS)

A P P R O X I M A T E DATE
OF O F F E R I N G

S t a t e and L o c a l
Texas, State of
Dallas-Ft.Worth Reg Airport,
Texas
Jersey City N.J.
J e f f e r s o n C o . Sch. D i s t .
P h i l a d e l p h i a Sch D i s t , P a .
HAA
New J e r s e y M t g e F i n a n c e A g e n c y
Lubbock, Texas
W a s h i n g t o n S t a t e Bond C o m m
C a l l Ed
Baltimore, Md
G r e a t e r C h i c a g o M e t r o Sav
Dist, 111
Puerto Rico
Mass House Finance Agency
, New Orleans, La
New York State
Los Angeles Department
San Gabriel Valley M u n
Dist, Calif
O h i o , S t a t e of
University of Texas
P e n n a S t a t e Pub Sch A u t h
A l l e g h e n y C o , Pa
I n d i a n a p o l i s , Ind
S a c r a m e n t o M U D , Cal
D e l a w a r e R i v e r P o r t A u t h . , NJ
Los Angeles Co Flood Control
Dist, Calif
U n i v e r s i t y of C a l i f (Berkeley

40.0

March

6

112.0
12.8
22.0
. 40.5
224.8
30.0
12.0

March
March
March
March
March
March
March

6
7
7
7
8
8
9

G.O.
G.O.

10.0
35.0

March
March

9
14

G.O.
G.O*
Rev.
Bonds
G.O.
E l e c rev

20. Or
50.0
20.0
11.0
39.2
40.0

March
March
March
March
March
March

14
14
14
15
15
15

G.O.
G.O.

17.5
46.0
50.0
61.0
28.0
10.0
28.0
160.0

March
March
March
March
March
March
March
April

15
16
16
16
16
22
22
5

G.O.
Rev.

27.0
11.7

April
April

11
11

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

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

*
1

Included in table for first time.
Includes corporate and other issues of 515 m i l l i o n and over; State and
G o v e r n m e n t issues of $10 m i l l i o n and over.

2

Includes foreign government and I n t e r n a t i o n a l Bank for R e c o n s t r u c t i o n and
D e v e l o p m e n t issues and n o n - g u a r a n t e e d issues of Federal A g e n c i e s .




local

Table 8

STOCK PRICES AND VOLUME
STOCK PRICES 1
NYSE INDEX 3 "

D.J. INDUSTRIALS

TRADING VOLUME 2 "
AMEX4

1969

High
Low

50.32
49.31

(5/14)
(7/29)

968.85
769.93

(5/14) 3 2 . 9 1
(12/17)25.02

(1.13)
(7/29)

16.5 (10/17) 8 . 0
3.0
8 . 6 (8/29)

(1/31)
(9/15)

1970

High
Low

52.36
37.69

(1/5)
(5/26)

8 4 2 . 0 0 (12/29) 2 7 . 0 2
6 3 1 . 1 6 (5/26) 1 9 . 3 6

(1/8)
(5/27)

18.5
7.8

7.1
1.8

(1/2)
(8/14)

1971

- High
Low

57.76
48.73

(4/28)
(1/4)

950.82
797.97

(4/28 ' 26.68 (4/28)
(11/231)22.72 (1/4)

58.26
58.33
58.48
58.95

906.68
917.59
917.52
922.79

27.38
27.47
27.57
27.78

16.9

6.0

60.07

942.43

28.14

21.0

7.0

1972

- Feb.

4
11
18
25

(12/4)
(8/14)

22.1 (2/12)
1 1 . 0 (9/17)

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

19.9
19.1

7.1
6.3

18.6

6.0

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 27-1/2 hours per week.
In recent years, however abbreviated trading to the extent, and over the time periods, shown below:
Through;
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.




Week '

13

TABLE 9: Security Credit

END OF PERIOE

C R E D I T E X T E N D E D TO
MARGIN CUSTOMERS BY:
BROKERS' | BANKS 2 |
TOTAL

NET CREDIT
|CUSTOMERS 1
C U S T O M E R S ' N E T E X T E N D E D BY
I N E T D E B I T j FREE CREDIT
BROKERS A N D
BALANCES
|
DEALERS 3
BALANCES

Outstanding;

1971 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.

4,000
4,090
4,300
4,530
4,620
4,720
4,790
4,850
4,930
4,950
4,910
5,400

2,300
2,330
2,360
2,340
2,340
2,390
2,420
2,430
2,430
2,410
2,400
2,440

6,300
6,420
6,660
6,870
6,960
7,110
7,210
7,280
7,360
7,360
7,310
7,840

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

2,452
2,743
2,798
2,660
2,550
2,440
2,210
2,200
2,100
2,160
2,170
2,220

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

5,700

2,490

8,190

(4)

2,488

(4)

-30
90
210

-30
30
30
-20

-60
120
240

C h a n g e in
Outstanding;
1971 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1972 - Jan.

1

2
3

4
5

——
——
--

230
90
100
70
60
80
20
-40
490

—

210
90
150
100
70
80

-20
-10
40

—

——

-50
530

-—

300

50

350

-—

50
30
10

——
——

*

.
--—

291
291
55
-138
-110
110
230
-10
100
60
10
50

——
——
——
-——
-—

——
-——
-—

268

M a r g i n debt, as reported by the N e w Y o r k S t o c k E x c h a n g e . A l t h o u g h m a r g i n debt
u n t i l M a r c h 1968 included loans secured by U . S . g o v e r n m e n t s , the amount of such
loans included is thought to h a v e been small.
" B a n k loans to others than b r o k e r s and dealers for purchasing or car:vine securities o t h e r than U.S. g o v e r n m e n t s
T h e d i f f e r e n c e b e t w e e n c u s t o m e r s ' net debit b a l a n c e s and customers' net tree credit b a l a n c e s , this figure r e p r e s e n t s the net credit extended by brokers and
dealers to the n o n f i n a n c i a l p u b l i c .
NOTE:
W i t h the exception of bank loan data, figures are supplied by the X w York
Stock Exchange and are end of m o n t h d a t a .
B a n k loans are for weekly reporting
large commercial banks.
B r o k e r data includes loans for regulated seeur i t i es; hank
data includes loans for the purpose of p u r c h a s i n g or c a r r y i n g any security, whether„
regulated or not.
Series d i s c o n t i n u e d .
C h a n g e s in series.




TABLE 10: Savings F l o w s at Nonbank Depositary Intermediaries
($ m i l l i o n s )

DATE

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

S A V I N G S «St L O A N A S S O C I A T I O N S
SHARE CAPITAL
NET
ANNUAL
NEW
NET
GROWTH
MONEY 2
FLOW
RATE 1
Not

1969
1970
1971

£

1970

2,549
4,517
9,623

/

~ November
December

1971

- January

497
1,218
774

1971

- November
December % /
- January

631
1,180
850

1972
1971

1972
1
2
3

4.0
6.8
13.5

-763
936
5,678

4,068
10,965
28,244

388
376
637

1,087
2,773
2,609
1,562

—

——

512

—

325
n.a.

--

- July
August
September
October
November
December g/

629
539
683
599
659.
836

9.8
8.4
10.5
9.1
10.0
12.5

--

- January ej

942

14.0

3.1
8.1
19.4

-1,003
5,285
20,652

6,617
15,482
37,867

1,044
1,161
2,476

1,584
3,991
3,383

1,484
- «•
3,135
1,168
—
—
2,700
3,116
Seasonally Adjusted

2,193
4,315
3,550

__
--

W—

--

1,710
2,031

--

4,117

28.4

—
--—

NET
FLOW

2,687
1,529
2,125
2,071

ANNUAL
GROWTH
RATE 1

!
j

N E T —
NEW
MONEY 2

Seasonally Adjusted

19.9
11.2
15.4
14.8
12.1
14.2

--

TOTAL
DEPOSITS

3.4
7.7
17.5

---

1,996
1,493

—

16.7
10.3
13.8
13.0
11.4
13.7

--

5,059

23.8

——
—

1,432
1,537
3,113

—

3,316
2,068
2,808
2,670
2,369
2,867

—

-1,766
6,231
26,330

— «*

__
—m

--

A n n u a l growth rate for m o n t h l y data is the a n n u a l i z e d m o n t h l y p e r c e n t a g e increase in d e p o s i t s .
Net New M o n e y is new deposits net of both w i t h d r a w a l s and interest.
Data for S&Ls are for
insured a s s o c i a t i o n s only, which r e p r e s e n t 96% of industry total resources.
Regular d e p o s i t s at m u t u a l savings banks exclude items such as C h r i s t m a s club and certain
escrow a c c o u n t s , which represent a very small part of total deposits.
SOURCE:
N a t i o n a l A s s o c i a t i o n of M u t u a l Savings B a n k s and Federal Home Loan B a n k Board.




TABLE 11: Mortgage Commitments at S e l e c t e d Thrift Institutions

Nl-T C H A N G E
ALL
I
SAVINGS &
LOAN

OUTSTANDING C O M M I T M E N T S
ALL
MUTUAL
SAVINGS
SAVINGS &
BANKS
LOAN
(N.Y. S T A T E )
ASSOCIATIONS

DATE

1

ASSOCIATIONS

MUTUAL
SAVINGS
HANKS
(N.Y. S T A T E )

(Billions of D o l l a r s , S e a s o n a l l y A d j u s t e d )vl/
—
1970 - Dec.

10.1

8.1

2.0

.51

.28

.23

1971 - Jan.
r/
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.

10.5
11.3

8.4
9.0

2.1

3.3
3.4

.14
.99
1.89
1.69
1.10
1.39
* 21
-.23
-.49
- . 16
.03

.14
.79
1.60
1.32
.73
1.35
.23
-.18
-.55
-.20
-.09

.00
.20
.29
.37
.37
.04
-.02
-.05
.06
.04
.12

3.6

-.34

-.41

Dec.

12.6
13.7
14.6
15.9

16.2
16.3

10.1
11.0

11.6
12.8

16.6

13.1
13.2
13.2
13.1
13.2

16.6

13.1

16.4
16.3

2.3
2.5
2.7
3.0
3.1
3.1
3.1
3.2

.

B a s e d on data from Federal H o m e L o a n B a n k B o a r d and Savings B a n k s A s s o c i a t i o n s of
New York State.
D a t a for s a v i n g s b a n k s and S & L ' s i n c l u d e a m i n o r amount of n o n residential commitments.
S & L c o m m i t m e n t s i n c l u d e loans in p r o c e s s .
Net changes
are d e r i v e d d i r e c t l y from u n r o u n d e d o u t s t a n d i n g s levels as r e p o r t e d and after
s e a s o n a l a d j u s t m e n t by F e d e r a l R e s e r v e .
S u b t o t a l s m a y not add to totals b e c a u s e
of r o u n d i n g .




.07

4f
1C

T A B L E 12:

Net Change in Mortgage Holdings

1

FINANCIAL INSTITUTIONS
TOTAL
INCLUDING
FNMA-GNMA

DATE

TOTAL | COMMERCIAL
|
BANKS

MUTUAL
SAVINGS
BANKS

SAVINGS &
LOAN
ASSOC.

LIFE
INSURANCE

FNMA-GNMA

COMPANIES

Not S e a s o n a l l y A d j u s t e d
23,796
23,867
21,945

21,288
19,492
17,035

6,677
5,404
2,462

2,798
2,533
1,956

9,344
9,572
10,254

2,469
1,983
2,363

2,508
4,375
4,910

1970 - O c t .
INov.
Dec.

2,193
2,005
2,785

1,826
1,752
2,637

294
280
200

162
183
302

1,175
1,171
1,653

193
118
482

367
253
148

1971 - O c t .
Nov.
Dec.

3,731
3,593
n.a.

3,275
3,246
n.a.

900
800
700

331
473
n.a.

1,979
1,941
2,335

65
39
693

456
347

1970 - O c t .
Nov.
Dec.

2,115
2,054
2,513

1,812
1,845
2,412

277
232
325

156
175
230

1,173,
1,285
1,675

206
153
182

303
209
101

2,033
2,184
3,005
3,057
3,300
4,136
4,186
4,168
3,924
3,657
3,647

2,043
2,219
2,983
3,113
3,260
3,935

394
475
690
685
864
1,219

200
217
401
293
318
386

3,878
3,656
3,458
3,267
3,345

977
901
902
884
752
826

374
400
306
329
465

1,348
1,426
1,801
2,082
2,036
2,309
2,455
2,252
2,122
1,977
2,058
2,354

101
101
91
53
42
21
72
130
128
77
77
378

-10
-35
22
-56
40
201
308
512
466
390
302

1968
1969
1970
1971

Seasonally Adjusted

1971 - J a n .
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1

!

|

M o n t h l y data for c o m m e r c i a l b a n k s based on Federal R e s e r v e e s t i m a t e s benchmarked
to C a l l Report data on real e s t a t e loans o u t s t a n d i n g as a v a i l a b l e .
Other data
derived from m o r t g a g e debt o u t s t a n d i n g as reported separately by N a t i o n a l A s s n .
of M u t u a l S a v i n g s B a n k s , Federal H o m e L o a n B a n k B o a r d , Institute of L i f e Insurance
a n d , through A u g u s t 1 9 6 8 , the Federal N a t i o n a l M o r t g a g e A s s o c i a t i o n , and therea f t e r by FNMA and the G o v e r n m e n t N a t i o n a l M o r t g a g e A s s o c i a t i o n .
Data for m u t u a l
s a v i n g s banks and for L i f e I n s u r a n c e c o m p a n i e s m a y differ somewhat from those
derived from regular q u a r t e r l y series because of m i n o r conceptual differences for
w h i c h a d j u s t m e n t s are not made in the m o n t h l y series.
A l t o g e t h e r , these groups
a c c o u n t e d for 8 7 per cent of the net increase estimated for all holders in 19170




17

TABLE 13: Net Increases in Mortgage Debt Outstanding
B i l l i o n s of dollars, SAAR ^
QUARTER

TOTAL

16.0

20.8
26.3

27.2
28.1
26.4
25.8
29.4
31.8
29.1

RESIDENTIAL
10.3
14.0
18.9
19.7

FAMILY
7.0

3.3

10.6

3.4
3.8
3.8

15.1
15.9

19.4

16.2

17.4

15.0
13.9
16.3

18.2
20.2
23.6

MULTIFAMILY

19.2

3.2
3.2
3.5
3.9

COMMERCIAL
3.9
5.0
4.9
4.7

MULTI-AND
COMMERCIAL

8.5

2.8

6.4

9.5
9.2

2.2

7.3

11.2

1.9

6.0
6.6
6.1

8.8

10.1

5.4
5.4
5.2

10.1
10.0

9.1
11.5
15.5

22.5

16.0

5:1
5.4
6.3
6.5

4.8
4.6
5.2
6.7

9.9
9.9
11.5
13.2

37.1

26.6
36.1
40.6

18.5
26.4
30.7
31.0

8,1

47.8
53.7
52.1

8-3
9.4

16.3
19.1
20.7
18.7

26.2

24.9

18.2

20.6

14.2
16.9

22.9
29.1
31.3

21.8

40.4

16.8
14.4
13.0

9.7
9.9
9.5

1.8

1.8

4.4
4.7
4.7
5.3

21.5
19.0

FARM

7.2
8.4

10.8
9.3

10.5

10.5

2.5

2.3

1.8

2.2

2.2
1.7
1.4
1.5
1.5

2.1

2.2
2.2
2.3
2.3
2.4

1 Derived from data on m o r t g a g e debt o u t s t a n d i n g from Federal D e p o s i t Insurance
C o r p o r a t i o n , Federal Home Loan B a n k Board, Institute of L i f e Insurance, N a tional A s s o c i a t i o n of M u t u a l Savings B a n k s , D e p a r t m e n t s of C o m m e r c e and A g r i culture, Federal N a t i o n a l M o r t g a g e A s s o c i a t i o n , Federal H o u s i n g A d m i n i s t r a t i o n ,
Veterans A d m i n i s t r a t i o n and C o m p t r o l l e r of the C u r r e n c y .
Separation of nonfarm m o r t g a g e debt by type of p r o p e r t y , w h e r e not a v a i l a b l e , and i n t e r p o l a t i o n *
and extrapolations, w h e r e required, estimated m a i n l y by Federal Reserve.
2 M a y differ somewnat from related flow of funds series m a i n l y b e c a u s e of m o r e
a g g r e g a t i v e type of seasonal a d j u s t m e n t .
3 Residential m o r t g a g e debt includes n o n f a r m only and is sum of 1-to 4 - family
and m 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 .




T A B L E 14:

WEEK
ENDED
Oct.

Nov.

Dec.

Jan.

Feb.

4

FNMA Weekly " A u c t i o n " R e s u l t s

C O M M I T M E N T S IN $ M I L L I O N S
IMPLICIT YIELD2(per cent)
ACCEPTED
3-4
TOTAL
TOTAL
1-YEARH m o n t h s
61-YEAR 1
63-4
OFFERED
& OVER
MONTH
mo.3/ , MONTH & OVER
3/

18

365.1
219.8

194.8
103.6

194. E1
103.6

1
15
29

126.0
145.3
210.6

56.4
102.0
101.1

56,4
102.0
101.1

13
27

232.5
222.7

70.2
148.1

70.2
148.1

10

136.9

24

103.6

7

88.7

/

72.9
54,9
63.9

-—

—
—

--

—

63.9

—

--

--

--

——

--

--

--

--

--

7.77
7.70
7.66

--

7.62
7.62

—

7.61
7.61

—

7.61

--

--

—

72.9
54.!9

7.85
7.83

Note:
U n d e r the FNMA a u c t i o n system, approved sellers of G o v e r n m e n t u n d e r w r i t t e n m o r t g a g e s bid for FNMA. forward p u r c h a s e c o m m i t m e n t s .
1.

For

2.

A v e r a g e s e c o n d a r y m a r k e t yield a f t e r a l l o w a n c e for c o m m i t m e n t fee and
required p u r c h a s e and h o l d i n g of F N M A s t o c k , a s s u m i n g p r e p a y m e n t of
15 y e a r s for 3 0 - y e a r G o v e r n m e n t - u n d e r w r i t t e n m o r t g a g e s .
Y i e l d s shown
a r e g r o s s , b e f o r e d e d u c t i o n o f 38 b a s i s p o i n t s fee paid b y i n v e s t o r s
to s e r v i c e r s .

3.

Short-term commitments converted
O c t o b e r 18, 1971.




"proposed

c o n s t r u c t i o n " of n e w h o m e s only.

from a 3 to a 4 m o n t h b a s i s b e g i n n i n g

TABLE 15: Private Housing Starts and Permits
1
DATE

SEASONALLY A D J U S T E D
A N N U A L RATE
T O T A L 1-FAMILY 2 OR M O R E

STARTS

TOTAL
I

: - Jan.

1

2

£/

1,794
1,938
1,951
2,046
2,008
2,091
2,219
2,029
2,038
2,228
2,433

n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1,242
1,341

n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
985
1,092

2,549

1,448

1,101

1,810

:

ANNUAL
RATE) 2

!

1

1
- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept,
Oct. r/
N o v . r/
D e c . £/

BUILDING
PERMITS
(SEASONALLY
ADJUSTED

UNADJUSTED
T Y P E O F FINANCING
FHA ! VA |
OThiER

110.6
102.2
167.9
201.1
198.5
193.8
194.3
204.5
173.8
179.7
176.4
154.0

32.3

4.6

27.3
33.5
44.6
40.7
46.1
42.9
45.8
48.3
38.5
47.2
85.4

4.7
6.9
8.5
8.4
9.3
9.2
9.4
8.7
8.1
9.1
7.4

148,.0
149.,4
138. 4
141. 1
147. 0
116.,8
133.,1
115. 9
56. 8

153.7

37.4

7.5

198. 6

73,.7
70,.2
127,.6

1

1,635
1,563

1
!

1,627
1,638
1,927
1,849
2,052
2,006
1,900
2,173
1,952
2,292
2,186

T o t a l starts are C e n s u s estimates including farm for both p e r m i t - i s s u i n g and
n o w - i s s u i n g 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 c o m m i t m e n t s by these agencies to insure or guarantee the m o r t g a g e s . A s reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, w h i c h is m a d e before
footings are poured in some cases but n o r m a l l y after the foundations have been
c o m p l e t e d . O t h e r starts are derived as a residual, although total and FHA and
VA starts are not strictly comparable in concept or timing; other starts include b o t h units financed by conventional mortgages and units w i t h o u t m o r t g a g e s .
B u i l d i n g permits before January 1963 are Census estimates for about 10,000 areas
identified as having a local building permit system in 1959.
Estimates beginning
J a n u a r y 1963 are for approximately 12,000 and b e g i n n i n g J a n u a r y 1967 13,000, or
all known permit-issuing places.
Unlike starts, seasonally adjusted building perm i t s reflect direct adjustment for differences in the n u m b e r of w o r k i n g days per
m o n t h , as well as other differences in timing and c o v e r a g e .




TABLE 16: Mortgage and Bond Yields

i

™
MORTGACFS

DATE •
30-year
1969

1

J C O N V E N - j S P R E A D BETIONAL
TWEEN Y I E L D S
MORTON C 0 N V . &
FHA M O R T GAGES
GAGES 5
3

1

1

f

NEW
Aaa CORPORATE
BONDS
4

S P R E A D BETWEEN
YIELDS ON NEW
C O R P O R A T E BONDS
AND
FHA M O R T G A G E S 6

- High
Low

8.62
7.99

8.35
7.55

-.13
-.40

8.75
6.91

1.08
-.13

1970 - High
Low

9.29
8.40

8.60
8.30

-.10
-.74

9.11
7.80

.99
.01

1971

- High
Low

7.97
7.32.

7.95
7.55

.28
-.19

8.01
7.24

.50
-.36

1971

- July
Aug.
Sept.

7.97
7.92
7.84

7.80
7.85
7.85

-.17
-.07
.01

7.96
7.65
7.44

.01
.27
.40

Oct.
Nov.

7.75
7.62
7.59

7.80
7.75
7.70

.05
.13
.11

7.29
7.19
7.09

.46
.43
.50

Dec.
1972
1

2

3

4
5
6

- Jan.

7.49
7.60
.11
7.07
.42
N e i t h e r m o r t g a g e nor bond y i e l d s i n c l u d e a l l o w a n c e for s e r v i c i n g costs which are
m u c h h i g h e r for m o r t g a g e s than for b o n d s .
G e n e r a l l y , bonds pay interest semiannually; mortgages, monthly.
M o r t g a g e y i e l d s , if computed as equivalent to
a s emi-annual interest i n v e s t m e n t , would be slightly h i g h e r than given in the
table.

Based on FHA-'field-office o p i n i o n s a b o u t a v e r a g e bid p r i c e s in the p r i v a t e
s e c o n d a r y m a r k e t for n e w - h o m e m o r t g a g e s for i m m e d i a t e d e l i v e r y .
D a t a shown
are fox 3 0 - y e a r m o r t g a g e s w i t h m i n i m u m d o w n p d y m e n t s , and w e i g h t e d b y p r o b a b l e
v o l u m e of t a n s a c t i o n s .
Yields computed b y FHA, assuming prepayment period
of 15 y e a r s for 3 0 - y e a r m o r t g a g e s .
Based on F H A - f i e I d - o f f i c e o p i n i o n on t y p i c a l i n t e r e s t rates (rounded) on
c o n v e n t i o n a l first m o r t g a g e s p r e v a i l i n g in the m a r k e t areas o f insuring
O f f i c e cities.
Seti -note for T a b l e 1.
Yield spread e q u a l s c o n v e n t i o n a l m o r t g a g e r a t e s less F H A s e c o n d a r y m a r k e t yield.
Yield spread e q u a l s F H A s e c o n d a r y m a r k e t yield less n e w Aaa c o r p o r a t e bond
yield.
.
-




21
TABLE 17: Conventional Mortgage Terms

DATE

NEW HOMES
FEES &
CONTRACT CHARGES EFFEC- MATURITY
(YEARS)
(PER
RATE
TIVE
CENT) RATE
(PER
CENT)
3
2

LOAN/
PRICE LOAN .
RATIO AMT.
(PER ($000)
CENT)
4

1

EXISTING HOMES
CONFEES &
LOAN /
TRACT CHARGES EFFEC- MATU- PRICE
(PER
RATE
RITY
TIVE
RATIO
CENT) RATE
(PER
(YEARS) (PER
CENT)
CENT)
2
3

LOAN
AMT.
($000)

4

1971
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

8.03
7.74
7.52
7.37
7.36
7.38
7.51
7.60
7.67
7.68
7.65
7.62

0.92

8.18

0.83
0.73
0.71
0.74
0.90
0.84
0.97
0.97
0.87
0.93

7.91
7.66
7.49
7.47
7.50
7.66
7.74
7.83
7.84
7.79
7.77

7.62

0.91

7.77

1.00

25.8

26.6

73.3
73.9
73.7
73.6
74.0
73.7
74.5
73.9
75.3
75.5
75.4
74.5

26.5

75.3

26.2

25.9
26.3

26.1
26.3
26.3

26.2
25.8
26.4
26.7

26.4

0.82

26.7
27.2
27.1
26.5
25.9
26.3
27.3
26.5

7.94
7.67
7.47
7.34
7.33
7.38
7.50
7.58
7.63
7.62
7.56
7.51

0.79
0.77
0.75
0.71
0.74
0.75
0.76
0.78
0.79
0.79
0.78

8.08
7.80
7.60
7.47
7.45
7.50
7.63
7.71
7.76
7.75
7.69
7.64

23.5
24.0
24.1
24.2
24.0
24.3
24.2
24.5
24.2
24.1
24.3
24.6

27.8

7.46

0.76

7.59

24.5

26.2

26.0

26.2

72.5
73.1
73.5
73.6
73.2
73.9
74.5
74.2
74.5
74.2
74.6
74.6

22.0
22.5
23.0
23.1
23.3
28.3
23.2
23.5
22.5
22.9
23.2
23.9

1972
Jan.

74.6

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to
home-builders; and permanent loans which are coupled with construction loans to ownerbuilders.
Related series on conventional mortgage rates only, based on unweighted
opinions of field-office directors of the Federal Housing Administration, are available
somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case
of new home mortgage rates--in Table 16.
Fees and charges--expressed as a percentage of the principal mortgage amount--include
loan commissions, fees, discounts, and other charges which provide added income to the
lender and are paid by the borrower. They exclude any closing costs related solely to
transfer of property ownership.
Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.
4

Derived by FRB.




23.8