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^ E C O m O L L E D AFTER SIX MONTHS
L.5.8 Confidential (F.R.)

. \

May 1,

/

CAPITAL
MARKET
DEVELOPMENTS

Capital Markets Section, Division of Research and Statistics,
Board of Governors of the Federal Reserve System, Washington, D. C.




1972

INDEX

3-5

D e v e l o p m e n t s in t h e C o r p o r a t e and M u n i c i p a l B o n d M a r k e t s

6-7

C a p i t a l Market Y i e l d s

8-13

C a p i t a l Market V o l u m e

14-17

S t o c k Market

18-33

M o r t g a g e Market

SYMBOLS:

e

Estimate

p

Preliminary

r
n.a.

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

CORPORATE BOND MARKET
WEEK ENDING:
NEW ISSUE

1

MOODY'S
__ SEASONED
Aaa

GROSS
OFFERINGS

PER CENT
SOLD BY END
OF WEEK

1
|

BONDS SCHEDULED
WITHIN 28 DAYS

1972 - M a r .

3
10
17
24
31

7 .16
7 .12
7 .14
7 .26
7 23

7.25
7.24
7 .22
7 .24
7 .24

409
281
385
423
247

98
89
82
72
64

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

Apr.

7
14
21
28

7 .33
7 .42
7.42
7.32

7 .25
7.28
7.32
7.36

422
469

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

5

. a.

n. a .

May

MOODY'S
SEASONED
Aaa

WEEK ENDING:

1972 - M a r .

3
10
17
24
31

Apr.

7
14
21
28
5

j

May

412
334

I
YIELDS
BOND BUYER
SEASONED 20
BOND INDEX

1
!

78
87
99
99

420e

n.a.

MUNICIPAL BOND MARKET
VOLUME2
I PER CENT
^
GROSS
1 SOLD BY END j
OF WEEK
|
.OFFERINGS |

!

5 . 00
4 . 90
5 . 00
5 . 00
5 . 05

5 . 29
5 . 18
5 . 32
5 . 34
5 . 40

481
640
542
420
326

86
77
59
82
81

|
'
|

5 . 20
5. 25
5 . 20
5 . 00

,5. 49
5. 54
5 . ,50
5 . 20

378
676
569
387

76
92
90
88

280e

BONDS SCHEDULED
WITHIN 28 DAYS

n. a .

a.

1,071
998
957
1,066
1,109
1,375
1,015
1,310
1,342

1 D e r i v e d by a d j u s t i n g to a A a a b a s i s , n e w issues of p u b l i c l y - o f f e r e d c o r p o r a t e b o n d s
w i t h 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 I n v e s t o r s S e r v i c e (except serial
and c o n v e r t i b l e i s s u e s , o f f e r i n g s of n a t u r a l gas p i p e l i n e and foreign c o m p a n i e s , and
b o n d s g u a r a n t e e d by the Federal Government'. )
2 Millions
Note:

of d o l l a r s

Svu

footnotes

unless otherwise
to T a b l e




3

indicated.

T A B L E 2:

DATE
OFFERED

AMOUNT
(MIL. $)

4/28

Va Commonwealth B a n c s h a r e s

15.0

DATE
OFFERED 1 RELEASED

D e t a i l s on Inventories

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
"
I ORIGINAL] RAflNC AND
ISSUER
| COUPON I YIELD jCALL PROTECTION
7 1/4

7.30

NR

T'ESTIMATED PRO:
|
PORTION SOLD

7 yrs

80%

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT
ISSUER
COUPON
IN YIELD CALL PROT. PORTION RELEASED
YIELD

NONE

INVENTORIES
MUNICIPALS
BLUE LIST
I
IN SYNDICATE

DATE
1972 - M a r . 3 1

768

136

Apr.

7
14
21
28

680
654
622
611

140
94
89
72

call

1

CORPORATES
IN SYNDICATE
190

protection.

No

A l l figures in m i l l i o n s of d o l l a r s .
B L u e List is d a i l y a v e r a g e for week
w h i c h is iaily a v e r a g e of t h r e e d a y s ended W e d n e s d a y .
A l l o t h e r figures




94
64
15
5e

ended F r i d a y , e x c e p t
are as of F r i d a y .

for

latest

week

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

MOODY'S SEASONED
CORPORATE
Aaa 2
8 . 60 ( 7 / 3 )
7.48 (12/21)

U . S . GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3
7.55 (5/29)
6.17 (12/18)

BOND
BUYER'S
SEASONED
MUNICIPALS 4
7.12 (5/29)
5.33 (12/11)

1970 " H i g h
Low

NEW
CORPORATE
Aaa1
9.30 (6/19)
7.68 (12/18)

1971 - H i g h
Low

8.23 (5/12)
6.76 (1/29)

7.71 (8/13)
7.06 (2/12)

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

6.23 (6/24)
4.97 (10/21)

1972 - High
Low

7.42 (4/21)
6.86 (1/14)

7.36 ( 4 / 2 8 )
7.16 (1/21)

6.19 ( 4 / 1 4 )
5.96 (1/14)

5.54 (4/13)
4.99 (1/13)

7.26
7.23

7.24
7.24

6.08
6.10

5.34
5.40

DATE

1972 - M a r .

24
31

5.49
6.13
7.25
5.54
7.28
6.19
5.50
6.19
7.32
6.15
5.20
7.36
New c o r p o r a t e i s s u e s , w i t h c a l l p r o t e c t i o n , a d j u s t e d ( a s d e s c r i b e d i n
1
f o o t n o t e 1 of T a b l e 1) t o a Aaa b a s i s .
2
W e e k l y a v e r a g e of d a i l y f i g u r e s . A v e r a g e t e r m of b o n d s i n c l u d e d i s
22-24 y e a r s .
3
W e e k l y a v e r a g e of d a i l y f i g u r e s .
4
T h u r s d a y f i g u r e s . The a v e r a g e r a t i n g of t h e 20 b o n d s u s e d i n t h i s i n d e x
f a l l s midway b e t w e e n t h e f o u r t o p g r o u p s a s c l a s s i f i e d by M o o d y ' s I n vestors Service.
N o t e - - H i g h s and lows a r e f o r i n d i v i d u a l s e r i e s and may b e on d i f f e r e n t d a t e s
for different series.
Apr.




7
14
21
28

7.33
7.42
7.42
7.32

6
T A B L E 4:

Long-term Corporate and State and Local Government
Security Offerings and P l a c e m e n t s
(In m i l l i o n s of dollars)

GROSS PROCEEDS1

STATE AND LOCAL 2

CORPORATE

PERIOD
1972

1971

1970

3 ,151
3 ,315
3 ,550e

3,115
3,000
6,075

2,636
1,802
3,539

April
May
June

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
3,518

October
November
December

3,387
3,704
3,673

January
February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three q u a r t e r s
Year

10, 016e

1972

1971

1970

2,732
1,851
2,258

1,340
1,214
1,555

1,891
2,167
2,013

1,647
996
1,085

1,989
1,903
2,098

1,348
1,359
1,758

3,777
4,182
3,980

1,728
2,264
2,068

1,924
1,748
2,190

12,190
11,688
10,447
10,764

7,977
10,468
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

1,762
1,953
2,150e

1

i
1
i

—
1
2

S e c u r i t i e s and E x c h a n g e Commission e s t i m a t e s of g r o s s 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 .




T A B L E 5: New Corporate Security I s s u e s , Type of I s s u e and Issuer
(In m i l l i o n s of dollars)

QUARTER
OR
MONTH

TOTAL

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

U7688
10,447
10,764
10,016

6 , 546
4 , 725
5 , 135
5 ,323

1 758
1 641
2 439
1 ,723

3 384
4 079
3 193
2 ,967

215
114
133
n.a.

1971 - F e b .
Mar.

3,000
6,075

2 . ,201
4 , ,135

275
647

524
1,,293

Apr.
May
June

4,042
3,271
4,375

,116
2:
2 . ,148
2 :,282

507
491
760

July
Aug.
Sept.

4,147
2,532
3,768

1 ,331
1:,428
1 ,966

Oct.
Nov.
Dec.

3,387
3,704
3,673

1 ,942
2 ,003
1 ,190

1971 - I I
III
IV
1972 - I e /

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

OTHER
ISSUERS 1

1,351
652
767
456

3 , ,130
2 , ,202
2, ,453
1 ;, 4 0 4

2 , ,910
2 ,, 6 5 1
3, , 0 4 1
2;,342

896
2 . ,263
1,,053
1 ,457

4,753
3,331
4,164
4,815

3
38

168
557

661
,
2 :417

1 ;, 0 6 9
1, ,452

683
532

587
1,675

1 ,419.
633
1 ,332

116
47
52

384
255
712

1., 1 3 5
588
1;, 2 0 6

1,, 2 6 7
588
1 ,055

273
405
218

1,367
1,489
1,897

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

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

529
988
925

749
498
210

1,496
1,309
2.010

829
1972 - J a n .
552
3,151
1 ,767
59
254
378
3,315
1 ,906
371
1 ,038
13
194
Feb.
521
1,100
n.a.
M a r . eZ 1 3 , 5 5 0
900
180
505
I ,650 .
1 . O t h e r i s s u e r s a r e e x t r a c t i v e , r a i l r o a d and o t h e r t r a n s p o r t a t i o n , r e a l e s t a t e
and f i n a n c e , and c o m m e r c i a l and o t h e r .
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 a r e a v a i l able .




COMMUNICATIONS

T A B L E 6:

ISSUER
Corporates
P u b l i c S v c E l e c t & Gas
S t . Regis Paper
S o . N a t u r a l Gas
M i s s i s s i p p i Power
N o r t h Am Car Corp
Browning-Ferris Ind. Inc.
F i r s t N a t 1 1 Bank of A r i z
P u b l i c Svc E l e c t & Gas
Safeway S t o r e s , Inc.
A r k a n s a s Pwr & L i g h t
A r k a n s a s Power & L i g h t
LCA C o r p
NW B e l l T e l e
NW B e l l T e l e
Teneco Inc
C i n c i n n a t i Gas & E l e c t
M o n o g a h e l a Pwr
C o n s o l i d a t e d E d i s o n of NY
H e l l e r , W a l t e r E & Co
P e o p l e s Gas L t . & Coke
McCulloch Prop C r e d i t
Gen ' 1 T e l e Co of Pa
C.I. Realty Inv.
Hartz Mountain Pet Foods, I n c .
Natomas Co
Duke Pwr
L i g g e t t & Myers
New E n g l a n d M u t u a l L i f e I n s Co
Day1in, Inc
A l a b a m a Power
A l a b a m a Power
L a r w i n Mtge I n v
C i t y I n v e s t i n g Co
Simpson S e a r s A c c e p t Corp




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

TYPE 2
1 s t mtge
Conv d e b s
Debs
Debs
Eq t r
Com s t k
De bs
Pref stk
Debs
1 s t mtge
Pref stk
Com s t k
Debs
Notes
Pref stk
pref stk
Debs
Debs
Debs
1 s t mtge
Debs
Debs
Bene I n t
Cm s t
Cm s t
Bonds
Debs
Debs
Debs
Pref
Debs
Debs
Debs
Debs

AMOUNT
(MILLIONS
OF
DOLLARS)
125.0
60.0
60.0
25.0
' 20.0
40.6
20.0
15.0
65.0
35.0
15.0
40.8
100.0
50.0
70.0
40.0
30.0
150.0
40.0
40.0
30.0
16.0
65.0
39.8
19.5
100.0
50.0
50.0
25.0
20.0
100.0
25.0
25.0
25.0

MATURITY
2002
1997
1979
2002
1992
- -

1997
——

1997
2002

A p r i l 3 t h r u A p r i l 2 8 . 1972
/
COUPON
MO6DY's
OFFERRATE OR
RATING
NET INTERING
EST COST
YIELD
7 1/2
4.88
6 7/8
7 5/8
8.10

7 1/2
4.88
6.95
7.63
8.10

Aa
Ba
A
A
Baa

7.70
8.08
7.40
7 3/4

7.22
7.96
7.40
7.63

A
A
A

7 1/2
6 3/4
7.94
7.44
7 7/8
• 7.90
7.75
7 5/8
7 1/2
8.00

7.46
6.75
7.94
7.44
7.75
7.90
7.82
7.60
7.50
7.95

- -

__

- -

__

__

2005
1979
——
*-

2002
2002
1992
2002
1979
1997
__
__

2002
1997
1997
1997
__

2002
1982
1997
1992

Aaa
Aaa

A
A
Aa
Baa

__
__

7 3/4
7.60
7 3/8
8.35
8.04
7 7/8
6 3/4
8 7/8
8 3/4

7.70
7.60
7.46
8.35
7.90
7.85
6.75
8.96
8.75

Aa
A
Baa
A
A
- —

T A B L E 6:

ISSUER
Corporates
P h i l a d e l p h i a E l e c t Co
C a r o l i n a Pwr & L t
I o w a E l e c t L t & Pwr
R y d e r S y s t e m Iric
Combined C o m m u n i c a t i o n s Corp
E. F . H u t t o n
Transcontinental Pipeline
Lone S t a r I n d u s t r i e s I n c
M i s s Pwr & L t
Va Commonwealth B a n k s h a r e s




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

TYPE 2
Pref s t
Debs
1 s t mtg
1 s t mtg
Cm s t
Cm s t
1 s t mtg
Debs
1 s t mtg
Debs

AMOUNT
(MILLIONS
OF
DOLLARS)
75.0
100.0
30.0
25.0
18.3
15.4
75.0
50.0
15.0
15.0

MATURITY
- -

2002
2002
1992

A p r i l 3 t h r u A p r i l 28,
COUPON
|
RATE OR
MOODY'S
OFFERNET INTERRATING
ING
EST COST J
YIELD
7.80
7 3/4
7 5/8
8 1/8

- -

——

1979
1997
2002
1980

7.60
8.00
7 3/4
7 1/4

Aa
A
Aa
Baa

——

- -

7.80
7.73
7.65
8.176

- —

——

7.60
8.00
7.65
7.30

—«-

Baa
Baa
A
- -

1972

T A B L E 6:

Large Long-term Public Security I s s u e s for New Capital (continued)
(Other than U.S. T r e a s u r y ) '

ISSUER
S t a t e and L o c a l
Maine
O a k l a n d Co, Mich
R e v e r e , Mass
Alhambra Redevelopment Agency, C a l .
U n i v e r s i t i e s o f S t a t e of T e x a s
N . Y . C . Ed. C o n s t . F u n d , N.Y.
B u f f a l o , N.Y.
Maine
V i l l a g e of H o d g e , L a .
V i l l a g e of H o d g e , La
V i l l a g e o f H o d g e , La
Pittsburgh
New Y o r k C i t y
U n i v e r s i t y of C a l i f o r n i a
Delaware River P o r t A u t h . , N.J.
Massachusetts
Coral Gables, Fla.
Los A n g e l e s Co F i d C o n t r . D i s t ,
Cal.
F a i r f a x C o , Va.
E r i e C o . , N.U.
P o r t l a n d Oreg
O a k l a n d Co, Mich
San J o a q u i n D e l t a JCD, C a l .
M e m p h i s , Tenn
C o n n e c t i c u t , S t a t e of
Wayne Co S t a d i u m A u t h
P u e r t o R i c o Wtr R e s . Auth
S a l t R i v e r P r o j e c t A g r i c Imp
and Power D i s t . , A r i z




A p r i l 3 t h r u A p r i l 28 . 1 9 7 2
COUPON
RATE OR
MOODY'S
OFFERNET INTERi;.<;
RATING
EST COST
YIELD

AMOUNT
(MILLIONS

OF
DOLLARS)
G.O.
G.O.
G.O.
Rev.
G.O.
Bonds
G.O.
G.O.
Rev.
Rev.
Rev.
G.O.
G.O.
Rev.
Rev.
G.O.
G.O.

13.0
14.2
12.5
11.2
58.4
49.2
35.1
4.3
16.5
17.5
31.0
11.4
255.3
14.9
100.0
90.0
21.2 '

1973-1992
1973-2002
1973-1982
1975-1997
1973-1978
1974-2010
1972-1985

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

27.0
27.2
14.9
15.1
10.1
11.9
25.0
105.0
35.9
60.0

1973-2002
1973-1992 .
1974-1982
1974-1991
1976-2000
1976-1987
1973-1997
1973-1992
1977-1997
1974-2005

5.07
5.10

1979-2002

5.36

E l e c Rev

49.0

1975-1990
1998
2007
1973-1992
1973-2012
1974-2011
2011
1973-2021
1973-1999

4.60
5.55
4.97
5.56
3.56
7.00
4.58
3.61

2.75-5.60
3.00-6.35
3.25-5.20
3.75-5.70
2.75-3.75
4.60-7.00
2.70-5.05
2.75-5.60
3.50-5.60
5.80
6.00
3.10-5.50
4.00-6.90
3.50-5.80

——-

5.17
6.28
5.76
1
6.56
4.90
5.43

- -

3.00-5.70
3.00-5.70

- -

4.48
5.80
4.78
4.98
4.99
- - -

•

Aaa
A-l
Baa-1
A
Aa
Baa
A
Aaa
A
A
A
A-l
Baa-1
A-l
Baa
Aa
A

3.10-5.50
3.20-5.40
3.30-4.60
n. a.

Aa
A
Aa

4.10-6.10
4.30-4.80
3.00-5.30
3.10-5.35
4.40-6.25
3.50-6.20

A-l
Aa
Aa
Aaa
Baa-1
A

4.30-5.70

Aa

- -

T A B L E 6:

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

AMOUNT
(MILLIONS
OF
DOLLARS)

ISSUER
S t a t e and L o c a l
Mississippi
U n i v e r s i t i e s of S t a t e o f T e x a s
Wayne Co. S t a d i u m A u t h
North Allegheny J t A u t h . , Pa.
P r i n c e G e o r g e s C o . , Md.
New Y o r k
A u s t i n ISD, T e x a s
E a s t B a t o n Rouge P a r i s h C o n s o l i d a t e d S/D# 1 , L a .
San A n t o n i o , Texas

MATURITY

A p r i l 3 t h r u A p r i l 2 8 . 197?
COUPON
|
RATE OR
! OFFER MOODY'S
NET INTER- '
II.C
RATING
EST COST J
YIELD

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

30, , 0
10..3
90.. 1
10. ,7
34. 0
147. ,0
21. ,0

1977-1992
1973-1978
2012
1973-2008
1973-1997
1973-1992
1975-1992

5.02
4.78
4.93

3 . 0 0 - 5 . 90
2 . 9 0 - 5 . 30
3 . 4 0 - 5 . 10

G.O.
G.O.

12,,0
15,, 0

1973-1992
1975-1992

4.80
4.57

3 . 0 0 - 5 . 10

Debs

200 . 0

1979

6.64

6.64

5.06
3.92
6.64
- —

4 . 1 0 - 5 . 25
3 . 0 0 - 4 . 00
6.70
——

Other
E x p o r t I m p o r t Bank

Rights o f f e r i n g .
I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s o f $15 m i l l i o n and o v e r ;
S t a t e and l o c a l s e c u r i t y o f f e r i n g s of $10 m i l l i o n and o v e r .
I n c a s e of S t a t e and l o c a l g o v e r n m e n t s e c u r i t i e s , G.O. d e n o t e s g e n e r a l o b l i g a t i o n ; '
'<ev. - U t . , r e v e n u e o b l i g a t i o n s s e c u r e d o n l y by i n c o m e f r o m p u b l i c u t i l i t i e s ;
R e v . - Q . - U t . , r e v e n u e b o n d s s e c u r e d o n l y by income from q u a s i - u t i l i t i e s ; R e v . - S . T . ,
r e v e n u e b o n d s s e c u r e d by r e v e n u e from s p e c i f i c t a x e s o n l y ; R e v . - R e n t . , r e v e n u e
b o n d s s e c u r e d s o l e l y by l e a s e p a y m e n t s .
I n c l u d e s f o r e i g n g o v e r n m e n t and I n t e r n a t i o n a l Bank f o r 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 i s s u e s and n o n - q u a r a n t e e d i s s u e s by F e d e r a l A g e n c i e s .




Aa
Aa
Baa-1
Baa
A
Aa
Aa
A-l
Aa

T A B L E 7:

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. T r e a s u r y ) 1

|
ISSUER
Corporate
Southwestern Bell Tel
F i d e l c o Growth I n v e s t m e n t s
Avco F i n a n c i a l C o r p
So. C a l i f . E d i s o n
S e c u r i t y Mtg I n v .
F i r s t Pa B a n k i n g & T r Co
M e d i c a l Mtg I n v
G e n ' l E l e c t C r e d i t Corp
Gen'l Public U t i l i t i e s
U . S . BanCorp RE & Mtg T r u s t
B a i t Gas & E l e c t
K a n s a s C i t y Pwr & L t
C o n s o l i d a t e d N a t Gas
G e n ' l T e l of t h e N
W
C e n t r a l 111 Pub Svc
Hanover Square R e a l t y I n v e s t o r s
G u l f Pwr
B a r n e t t Banks of F l a . I n c
U t a h Pwr & L t
U t a h Pwr & L t
Pacific Lighting
N a t i o n a l F u e l Gas
Columbus & So O h i o E l e c t
Columbus & So O h i o E l e c t Co
C&P T e l Co o f Va
A m e r i c a n N a t u r a l Gas
Duquesne L i g h t Co
Va E l e c t & Pwr
A m e r i c a n M e d i c o r p , Inc..
Fruehauf Finance
I n s t i t u t i o n a l Investors Trust
M e d i a n Mtg I n v e s t o r s
Heublein, Inc
P r o c t e r & Gamble Co
Sun O i l Co
BancOhio Corp
M o b i l O i l Corp
P e n n z o i l La. & Texas O f f s h o r e
Metropolitan Edison
F i r s t C o m m e r c i a l Banks




TYPE
Debs
Conv d e b s
Bonds
Pref
Debs
Debs
Debs
Bonds
Cm s t ( r t s )
Debs
Cm s t
Debs
Debs
1 s t mtg
Debs
Conv d e b s
Bonds
Debs
Bonds
Cm s t
Pref
Debs
Bonds
Cm s t
Debs
Cm s t
1 s t mtg
Cm s t ( r t s )
Debs
Debs
Conv d e b s
Conv d e b s
Conv d e b s
Debs
Debs
Debs
Debs
Conv d e b
1 s t mtg
Debs

AMOUNT
(MILLIONS
OF
DOLLARS)
250.0
25.0
50.0
75.0
50.0
30.0
50.0
75.0
72.0
25.0
45.0
30.0
50.0
20.0
30.0
25.0
22.0
20.0
25.0
25.0
30.0
23.5
25.0
17.0
100.0
55.0
35.0
45.0
30.0
50.0
30.0
15.0
100.0
100.0
100.0
25.0
300.0
130.0
26.0
25.0

APPROXIMATE DATE
OF OFFERING
May
2
May
2
May
3
May
3
May
3
May
3
May
3
May
4
May
4
May
5
May
8
May 10
May 11
May 11
May 15
May 16
May 16
May 16
May 17
May 17
May 17
May 18
May 18
May 18
May 22
May 23
May 24
May 31
May
May
May
May
May
May
May
May
INDEF
INDEF
INDEF
INDEF

13
T A B L E 7:

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. T r e a s u r y ) 1
(continued)
.
, ,

ISSUER
S t a t e and L o c a l
MaComb C o . , M i c h .
Pennsylvania S t a t e of
Alabama S t a t e Dock D e p t .
D a l l a s - F t . W o r t h Reg*. A u t h , T e x .
G r e a t e r Anchorage Area Borough,
Alaska
Hampton Rds S a n i t . D i s t . , Va
N o r f o l k , Va.
New J e r s e y Hsg F i n a n c e Agency
Milwaukee
B a t t e r y Park C i t y Auth
P o r t of P o r t l a n d , Ore
T e x a s Tech U n i v e r s i t y , T e x a s
Penna S t a t e Pub S c h o o l B l d g .
Auth, Harrisburg
Columbus, Ohio
Ann A r u n d e l C o . , Md.
Ohio U n i v e r s i t y
D a l l a s , Tex
Florida
Los A n g e l e s DWAP

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

1972

APPROXIMATE DATE
OF OFFERING

6.0.

16.4

G.O.
Rev,
Rev.

100.0
15.0
37.5

May
May
May
May

2
3
8

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

13.0
12.0
15.0
59.0
12.3
200.0
25.0
12.5

May
May
May
May
May
May
May
May

8
9
9
9
9
10
10
11

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

50.0
16.5

May
May
May
May
May
May
June

11
15
23
24

15.0
24.7
35.0
54.0
40.0

2

24
7

TnrlnHpH in t-aHlo f nv f i r c f f- i" m
1
2

I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of S15 m i l l i o n and o v e r ; S t a t e and l o c a l
Government i s s u e s of $10 m i l l i o n and o v e r .
I n c l u d e s f o r e i g n g o v e r n m e n t and I n t e r n a t i o n a l Bank f o r 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 i s s u e s and n o n - g u a r a n t e e d i s s u e s of F e d e r a l A g e n c i e s .




Table 8

STOCK PRICES AND VOLUME
STOCK PRICES 1 -

TRADING VOLUME 2 •

DATE
NYSE INDEX 3 *

D J . INDUSTRIALS

AMEX *

NYSE

AMEX

1970 - H i g h
Low

52,36 (1/5)
37.69 (5/26)

842.00(12/29) 27.02 (1/8)
631.16 (5/26) 19.36 (5/27)

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

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

1971 - H i g h
Low

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

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

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

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

1972 - H i g h
Low

61.28 (3/14)
56.23 (1/3)

967.72 (4/14) 28.53 (4/14)
889.30 (1/3)
25.61 (1/3)

21.2 (3/24)
14.0 (3/31)

7.4 (3/10)
4.0 (3/31)

1972 - M a r . 2 4
31

60.39
59.68

939.87
940.70

28.32
27.87

21.2
14.0

4.8
4.0

61.08
61.28
60.72
60.00

962.60
967.72
963.80
954.17

28.31
28.53
28.30
27.96

19.8
19.9
18.1
15.9

6.0
6.3
5.7
4.3

Apr.

7
14
21
28

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

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

15

T A B L E 9: Security Credit

END OF PERIOD
Outstanding
1971 - F e b .
Mar.
Apr.,
May j
June!
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS 1 ( BANKS 2 ~\ TOTAL

CUSTOMERS'
NET DEBIT
BALANCES

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

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

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

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)

2,220

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

5,700

2,490
2,510

8,190
8,690

(4)
(4)

2,488
2,542

(4)
(4)

90
210
230
90
100
70
60

30
30
-20

120
240
210
90
150
100
70
80

291
55
-138
-110
110
230
-10
100
10
50
268
54

6,180

2,743
2,798

2,660
2,550
2,440

2,210
2,200
2,100
2,160
2,170

Change i n
Outstanding;
1971

1972

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

20
-40
490

-10

40

-50
530

Jan.
Feb.

300
480

50
20

350
500

80

50
30
10
-20

60

Margin d e b t , a s r e p o r t e d by t h e New York 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 d e b t
u n t i l March 1968 i n c l u d e d l o a n s s e c u r e d by U . S . g o v e r n m e n t s , t h e amount of such
l o a n s i n c l u d e d i s thought t o have beep s m a l l .
"Bank l o a n s t o o t h e r s t h a n b r o k e r s and d e a l e r s f o r p u r c h a s i n g o r c a r r y i n g s e c u r i t i e s o t h e r t h a n U.S. g o v e r n m e n t s . "
The d i f f e r e n c e between c u s t o m e r s ' n e t d e b i t b a l a n c e s and c u s t o m e r s ' net free cred i t b a l a n c e s , t h i s f i g u r e r e p r e s e n t s t h e n e t c r e d i t e x t e n d e d by b r o k e r s and
dealers to the nonfinancial public.
NOTE: With t h e e x c e p t i o n of bank l o a n d a t a , f i g u r e s a r e s u p p l i e d by t h e New York
S t o c k Exchange and a r e end of month d a t a . Bank l o a n s a r e f o r weekly r e p o r t i n g
l a r g e c o m m e r c i a l b a n k s . B r o k e r d a t a i n c l u d e s l o a n s f o r r e g u l a t e d s e c u r i t i e s ; bank
d a t a i n c l u d e s l o a n s f o r t h e p u r p o s e of p u r c h a s i n g o r c a r r y i n g any s e c u r i t y , w h e t h e r
r e g u l a t e d or not.
Series discontinued.
Changes i n s e r i e s .




T A B L E 10:

S a v i n g s F l o w s at Nonbank Depositary Intermediaries

($ m i l l i o n s )
SAVINGS & LOAN ASSOCIATIONS
MUTUAL SAVINGS BANKS
NET
NET
REGULAR DEPOSITS 3
SHARE CAPITAL
NEW
ANNUAL
NEW
ANNUAL
MONEY2
MONEY2
GROWTH
GROWTH
NET
NET
FLOW
RATE 1
RATE 1
FLOW

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET

NEW
MONEY

2

Not S e a s o n a l l y A d j u s t e d
1969
1970
1971

2,549
4,517
9,623

1971 - J a n u a r y
February
March

791
906
1,604

1972

January
F e b r u a r y j>/
March e /

856!
931
1,550

——
—

.

4,068
10,965
28,244

3.1
8.1
19.4

-1,003
5,285
20,652

6,617
15,482
37,8^7

637
811
955

—

-1,766
6,231
26,330

3.4
7.7
17.5

-763
936
5,678

4.0
6.8
13.5

2,609
2,444
4,108

2,476
2,340
2,627

3,383
3,350
5,712

- -

——

716
809
n.a.

3,266
2,818
4,299

3,117
2,684

4,122
3,749
5,849

- -

—

- —

3,113
3,151
3,582

—
—

.

3,833
3,493
n.a.

Seasonally Adjusted
1971 - A u g u s t
September
October
November
December
1972

539
683
599
659
836

8.4
10.5
9.1
10.0
12.5

- —
—
—

1,529
2,125
2,071
1,710
2,031

11.2
15.4
14.8
12.1
14.2

——
- —
—
—

2,068
2,808
2,670
2,369
2,867

10.3
13.8
13.0
11.4
13.7

-—
23.9
5,066
28.4
4,118
14.1
948
January
——
861
12.6
2,955
19.9
3,816
17.6
F e b r u a r y js/
18.8
—
15.0
1.032
March e /
20.6
_ _ 4 135Annual growth r a t e f o r monthly d a t a i s t h e a n n u a l i z e d monthly p e r c e n t a g e i n c r e a s e in d e p o s i t s .
N e t New Money i s new d e p o s i t s n e t of b o t h w i t h d r a w a l s and i n t e r e s t .
Data f o r S&Ls a r e f o r
i n s u r e d a s s o c i a t i o n s o n l y , which r e p r e s e n t 96% of i n d u s t r y t o t a l r e s o u r c e s .
R e g u l a r d e p o s i t s a t m u t u a l s a v i n g s b a n k s e x c l u d e i t e m s s u c h a s C h r i s t m a s c l u b and c e r t a i n
e s c r o w a c c o u n t s , w h i c h r e p r e s e n t a v e r y s m a l l p a r t of t o t a l d e p o s i t s .
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 S a v i n g s Banks and F e d e r a l Home Loan Bank B o a r d .




- —
—
—

- -

T A B L E 11:

DATE

TOTAL

Mortgage Commitments at S e l e c t e d Thrift Institutions

OUTSTANDING COMMITMENTS
ALL
MUTUAL
SAVINGS &
SAVINGS
LOAN
BANKS
(N.Y. S T A T E )
ASSOCIATIONS

1

I
TOTAL

1

NET CHANGE
ALL
SAVINGS &
LOAN

ASSOCIATIONS

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

( B i l l i o n s o f D o l l a r s , Sea s o n a l l y A d j u s t e d )
1

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

i

72 - J a n .
Feb.

1

1
!

11.3
12.6
13.7
14.5
.15.9
16.2
16.3
16.4
16.3
16.6
16.6

9.0
10.1
11.0
11.6
12.8
13.1
13.2
13.2
13.1
13.2
13.1

2.3
2.5
2.7
3.0
3.1
3.1
3.1
3.2
3.3
3.4
3.6

.76
1.28
1.15
.90
1.31
.30
.12
.08
.02
.20
.09

.60
1.11
.90
.56
1.26
.29
.14
-.07
-.05
.08
-.06

.16
.17
.25
.34
.05
.01
-.01
.14
.07
.12
.15

17.0
18.3

13.3
14.2

3.7
4.1

.30
1.34

. 12
.97

.18
.37

B a s e d on data from F e d e r a l Home Loan Bank B o a r d and S a v i n g s Banks A s s o c i a t i o n s of New Y o r k S t a t e .
D a t a f o r 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 r e s i d e n t i a l c o m m i t m e n t s .
S&L
New c h a n g e s a r e d e r i v e d d i r e c t l y f r o m u n r o u n d e d o u t s t a n d commitments i n c l u d e l o a n s i n p r o c e s s .
i n g s l e v e l s a s r e p o r t e d and a f t e r 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 may n o t add
t o t o t a l s b e c a u s e of r o u n d i n g .




18
T A B L E 12:

DATE

1968
1969
1970
1971p

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

Net Change in Mortgage Holdings

1

FINANCIAL-INSTITUTIONS
LIFE
MUTUAL
SAVINGS &
COMMERCIAL
INSURANCE
SAVINGS
LOAN
BANKS
COMPANIES
BANKS
ASSOC.
Not S e a s o n a l l y A d l u s t e d

23,796
23,867
21,945
41,611

21,288
19,492
17,035
39,223

1971 - D e c .

4,616

4,327

1972 - J a n .
Feb.
Mar.

2,427
2,711
n.a.

2,248
2,474
n.a.

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

2,033
2,184
3,005
3,057
3,300
4,136
4,186
4,168
3,924
3,657
3,647
4,325

2,043
2,219
2,983
3,113
3,260
3,935
3,878
3,656
3,458
3,267
3,345
4,083

394
475
690
685
864
1,219
977
901
902
884
752
826

1972 - J a n .
Feb.
Mar.

3,023
3,215

2,874
2,965

6,677
5,404
2,462
9,564

FNMA-GNMA

2,798
2,533
1,956
4,212

9,344
9,572
10,254
: 4,226
2

2,469
1,983
2,363
1,221

2,508
4,375
4,910
2,388

700

596

2,338

693

289

600
500
1,000

274
259
n.a.

1,453
1,776
2,552

-79
-6-1
n.a.

179
237
n.a.

Seasonally Adlusted

1

....

788
654
1,061

200
217
401
293
318
386
374
400
306
329
465
522

1,348
1,426
1,801
2,082
2,036
2,309
2,455
2,252
2,122
1,977
2,058
2,357

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

-10
-35
22
-56
40
201
. 308
512
466
390
302
242

272
296

1,813
2,042
2,592

1
-27
n.,

149
250
n.a.

....

M o n t h l y d a t a f o r c o m m e r c i a l b a n k s b a s e d on F e d e r a l R e s e r v e e s t i m a t e s benchmarked
t o C a l l R e p o r t d a t a on r e a l e s t a t e l o a n s o u t s t a n d i n g a s a v a i l a b l e .
Other data
d e r i v e d f r o m m o r t g a g e d e b t o u t s t a n d i n g a s r e p o r t e d s e p a r a t e l y 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 , F e d e r a l Home Loan Bank B o a r d , I n s t i t u t e of L i f e I n s u r a n c e
a n d , t h r o u g h A u g u s t 1 9 6 8 , t h e F e d e r a l 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 t h e r e a f t e r by FNMA and t h e Government 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 f o r m u t u a l
s a v i n g s b a n k s and f o r L i f e I n s u r a n c e c o m p a n i e s may d i f f e r somewhat f r o m t h o s e
d e r i v e d f r o m r e g u l a r q u a r t e r l y s e r i e s b e c a u s e of m i n o r c o n c e p t u a l d i f f e r e n c e s f o r
w h i c h a d j u s t m e n t s a r e n o t made i n t h e m o n t h l y s e r i e s .
A l t o g e t h e r , t h e s e groups
a c c o u n t e d f o r 8 6 p e r c e n t of t h e n e t i n c r e a s e e s t i m a t e d f o r a l l h o l d e r s i n 1 9 7 1 .




19

TABLE 13:

Net Increases in Mortgage Debt Outstanding

B i l l i o n s of d o l l a r s ,

1

SAAR -

TOTAL

RESIDENTIAL 3

1- to 4FAMILY

MULTIFAMILY

COMMERCIAL

1967 - I
II
III
IV

16.0
20.8
26.3
27.2

10.3
14.0
18.9
19.7

7.0
10.6
15.1
15.9

3.3
3.4
3.8
3.8

3.9
5.0
4.9
4.7

7.2
8.4
8.8
8.5

1.8
1.8
2.5
2.8

1968 - I
II
III
IV

28,1
26.4
25.8
29.4

19.4
18.2
17.4
20.2

16.2
15.0
13.9
16.3

3.2
3.2
3.5
3.9

6.4
6.0
6.6
7.3

9.5
9.2
10.1
11.2

2.3
2.2
1.8
1.9

1969 - I
II
III
IV

31.8
29.1
26.2
24.9

23.6
21.5
19.0
18.2

19.2
16.8
14.4
13.0

4.4
4.7
4.7
5.3

6.1
5.4
5.4
5.2

10.5
10.1
10.0
10.5

2.2
2.2
1.7
1,4

1970 - I
II
III
IV-

20.6
22.9
29.1
31.3

14.2
16.9
21.8
22.5

9.1
11.5
15.5
16.0

5.1
5.4
6.3
6.5

4.8
4.6
5.2
6.7

9.9
9.9
11.5
.13.2

1.5
1.5
2.1
2.2

1971 - I
IL
Hlr
IVt

37.1
47.8
53.6
53.4

26.6
36.1
40.1
40.1

18.5
26.4
31.4
31.4

8.1
9.7
8.7
8.7

8*3
9.4
11.2
10,8

16.3,
,19.2
19.9
19.5

2.2
2.3
2,3
2.5

1972 - I e

56.3

42.6

32.4

10.1

11:6

21.7

2.1

QUARTER

MULTI-AND
COMMERCIAL

FARM

1 D e r i v e d f r o m d a t a on m o r t g a g e d e b t o u t s t a n d i n g f r o m F e d e r a l D e p o s i t I n s u r a n c e
C o r p o r a t i o n , F e d e r a l Home Loan Bank B o a r d , I n s t i t u t e of L i f e I n s u r a n c e , Nat i o n a l A s s o c i a t i o n of M u t u a l S a v i n g s B a n k s , D e p a r t m e n t s of Commerce and A g r i c u l t u r e , F e d e r a l N a t i o n a l Mortgage A s s o c i a t i o n , F e d e r a l Housing A d m i n i s t r a t i o n ,
V e t e r a n s 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 t h e C u r r e n c y .
S e p a r a t i o n of n o n f a r m m o r t g a g e d e b t by t y p e of p r o p e r t y , w h e r e n o t a v a i l a b l e , and i n t e r p o l a t i o n *
and e x t r a p o l a t i o n s , w h e r e r e q u i r e d , e s t i m a t e d m a i n l y by F e d e r a l R e s e r v e .
2 May d i f f e r somewhat f r o m r e l a t e d f l o w of f u n d s s e r i e s m a i n l y b e c a u s e of more
a g g r e g a t i v e t y p e of s e a s o n a l a d j u s t m e n t .
3 R e s i d e n t i a l m o r t g a g e d e b t i n c l u d e s n o n f a r m o n l y and i s sum of 1 - t o 4 - f a m i l y
and m u l t i f a m i l y m o r t g a g e d e b t c o m b i n e d .




T A B L E 14:
COMMITMENTS

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

IN S M I L L I O N S

imi'uc IT

YlKLI) 2 (pvr c e n t . )

m:ckpted_
W'V.
I.'K
1 NIH .11

TOTAL

Ol'lT.RKl)

TOTAL 1 4- f 6 ll-YKARil
4j MONTH] MONTH 11* OVKR MONT11

6MONTIl

136.9
103.b

72.9
54.9

72.9
54.9

7.61
7.61

88.7
68.6

63.9
44.8

63.9
44.8

7.61
7.61

86.9
202.9

50.6
86.2

50.6
86.2

7.56
7.54

- —

20

Jan.

3
17

258.8
347.4

178.5
176.3

178.5
176.3

7.56
7.60

- -

10
24

Feb.

7
21

Mar.
Apr.

6

l-YKAK
& OVKR
- -

\-

- - -

——
—
——

NOTE: Under t h e FNMA a u c t i o n s y s t e m , a p p r o v e d s e l l e r s 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 b i d f o r FNMA f o r w a r d p u r c h a s e c o m m i t m e n t s .
1 . j A v e r a g e s e c o n d a r y m a r k e t y i e l d a f t e r a l l o w a n c e f o r commitment f e e and
| r e q u i r e d p u r c h a s e and h o l d i n g of FNMA 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 f o r 3 0 - y c 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 of 38 b a s i s p o i n t s f e e p a i d by i n v e s t o r s
to s e r v i c e r s .




1

T A B L E 15:

21

Private Housing Starts and Permits

STARTS
DATE

1971 - F e b .
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec. r /
1972 - J a n . r /
Feb. £ /

UNADJUSTED
TYPE OF FINANCING

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE
1,794
1,938
1,951
2,046

1,005

1,080
1,122

789
858
829
894
858
929

102.2
167.9

201.1

2,091
2,219
2,029
2,038
2,228
2,457

1,198
1,172
1,155
1,242
1,347

1,110

198.5
193.8
194.3
204.5
173.8
179.7
176.4
152.1

2,487
2,655
2,359

1,415
1,313
1,283

1,071
1,324
1,077

150.9
152.2
205.2

2,008

1,152
1,150

1,162

1,021
857
882
985

27.3
33.5
__44.6
40.7
46.1
42.9
45.8
48.3
38.5
47.2
85.4
35.7
27.8

4.7
6.9
8.5
8.4
9.3
9.2
9.4
8,7

8.1

70.2
127.6
148.0
149.4
138.4
141.1
147.0

116.8

133.1

9.1
7.4

120.1

7.5

107.7
116.4

8.0
10.5

59.3

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2
1,563
1,627
1,638
1,927
1,849
2,052

2,006
1,900
2,173
1.952
2,292
2,105
2,078
1.953

T o t a l s t a r t s a r e Census e s t i m a t e s i n c l u d i n g f a r m f o r b o t h p e r m i t - i s s u i n g and
n o i , - i s s u i n g a r e a s . A d w e l l i n g u n i t i s s t a r t e d when e x c a v a t i o n b e g i n s ; a l l u n i t s
i n an a p a r t m e n t s t r u c t u r e a r e c o n s i d e r e d s t a r t e d a t t h a t t i m e .
FHA and VA
s t a r t s a r e u n i t s s t a r t e d u n d e r commitments by t n e s e a g e n c i e s t o i n s u r e o r g u a r a n t e e t h e m o r t g a g e s . As r e p o r t e d by FHA and VA, a u n i t i s s t a r t e d when a f i e l d
o f f i c e r e c e i v e s t h e f i r s t c o m p l i a n c e i n s p e c t i o n r e p o r t , which i s made b e f o r e
f o o t i n g s a r e p o u r e d i n some c a s e s b u t n o r m a l l y a f t e r t h e f o u n d a t i o n s have been
c o m p l e t e d . O t h e r s t a r t s a r e d e r i v e d a s a r e s i d u a l , a l t h o u g h t o t a l and FHA and
VA s t a r t s a r e n o t s t r i c t l y c o m p a r a b l e i n c o n c e p t o r t i m i n g ; o t h e r s t a r t s i n c l u d e b o t h u n i t s f i n a n c e d by c o n v e n t i o n a l m o r t g a g e s and u n i t s w i t h o u t m o r t g a g e s .
B u i l d i n g p e r m i t s b e f o r e J a n u a r y 1963 a r e Census e s t i m a t e s f o r a b o u t 1 0 , 0 0 0 a r e a s
i d e n t i f i e d a s h a v i n g a l o c a l b u i l d i n g p e r m i t s y s t e m i n 1959. E s t i m a t e s b e g i n n i n g
J a n u a r y 1963 a r e f o r a p p r o x i m a t e l y 1 2 , 0 0 0 and b e g i n n i n g J a n u a r y 1967 1 3 , 0 0 0 , o r
a l l known p e r m i t - i s s u i n g p l a c e s .
Unlike s t a r t s , s e a s o n a l l y a d j u s t e d b u i l d i n g p e r m i t s r e f l e c t d i r e c t a d j u s t m e n t f o r d i f f e r e n c e s i n t h e number of w o r k i n g d a y s p e r
month, a s w e l l a s o t h e r d i f f e r e n c e s i n t i m i n g and c o v e r a g e .




22
T A B L E 16: Mortgage and Bond Y i e l d s

MORTGAGES
30-year
1970

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES 5

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES 6

9.29
8.40

8.60
8.30

-.10
-.74

9.11
7.80

.99
.01

1971 - H i g h
Low

7.97
7.32

7.95
7.55

.28

8.01

-.19

7.24

.50
-.36

1 9 7 1 - Aug.
Sept.

7.92
7.84

7.85
7.85

-.07

7.65
7.44

.27
.40

Oct.
Nov.
Dec.

7.75
7.62
7.59

7.80
7.75
7.70

.05
.13

7.29
7.19
7.09

. 46
.43
.50

1972 - J a n .
Feb.
Mar.

7.49
7.46
7.45

7.60
7.60
7.55

.11

7.07
7.16
7.22

.42
.30
.33

High
,

1

L

o

7

.01

.11
.14
.10

N e i t h e r m o r t g a g e nor b o n d 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 c o s t s w h i c h 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 , b o n d s pay interest semiannually; mortgages, monthly.
M o r t g a g e y i e l d s , if c o m p u t e d as e q u i v a l e n t to
a s e m i - a n n u a l i n t e r e s t i n v e s t m e n t , w o u l d be s l i g h t l y h i g h e r than given in the
table.

2 . B a s e d on F H A - f i e l d - o f f i c e o p i n i o n s a b o u t a v e r a g e b i d p r i c e s i n t h e p r i v a t e
s e c o n d a r y m a r k e t f o r new-home m o r t g a g e s f o r i m m e d i a t e d e l i v e r y .
D a t a shown
a r e f o r 3 0 - y e a r m o r t g a g e s w i t h minimum d o w n p a y m e n t s , a n d w e i g h t e d by p r o b a b l e
volume o f t r a n s a c t i o n s .
Y i e l d s computed by FHA, a s s u m i n g p r e p a y m e n t p e r i o d
o f 15 y e a r s f o r 3 0 - y e a r m o r t g a g e s .
3 B a s e d on F H A - f i e l d - o f f i c e o p i n i o n on t y p i c a l c o n t r a c t i n t e r e s t r a t e s ( r o u n d e d ) o n
c o n v e n t i o n a l f i r s t m o r t g a g e s p r e v a i l i n g i n t h e m a r k e t a r e a s of i n s u r i n g
offices.
4 See^note f o r Table 1.
5 Yield spread equals conventional mortgage r a t e
l e s s FHA s e c o n d a r y m a r k e t y i e l d .
6 Y i e l d s p r e a d e q u a l s FHA s e c o n d a r y m a r k e t y i e l d l e s s new Aaa c o r p o r a t e bond
yield.




TABLE 17: Conventional Mortgage Terms

DATE

1

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

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

7.52
7.37
7.36
7.38
7.51
7.60
7.67
7.68
7.65
7.62

0.83
0.73
0.71
0.74
0.90
0.84
0.97
0.97
0.87
0.93

7 66
7 .49
7 .47
7 .50
7,. 66
7,. 7 4
7..83
7..84
7..79
7.,77

25.9
26.3
26.1
26.3
26.3
26.2
25.8
26.4
26.7
26.6

73.7
73.6
74.0
73.7
74.5
73.9
75.3
75.5
75.4
74.5

26.0
26.2
26.7
27.2
27.1
26.5
25.9
26.3
27.3
26.5

7.47
7.34
7.33
7.38
7.50
7.58
7.63
7.62
7.56
7.51

0.77
0.75
0.71
0.74
0.75
0.76
0.78
0.79
0.79
0.78

7.60
7.47
7.45
7.50
7.63
7.71
7.76
7.75
7.69
7.64

24.1
24.2
24.0
24.3
24.2
24.5
24.2
24.1
24.6
24.6

73 . 5
73 . 6
73 . 2
73 . 9
74,.5
74,.2
74..5
74..2
74.,6
74. 6

23.0
23.1
23.3
28.3
23.2
23.5
22.5
22.9
23.2
23.9

7.62
7.45
7.39

0.95
1.02
0.81

7. 78
7 . 61
7 . 52

26.5
27.0
27.1

75.0
76.5
76.0

27.6
27.8
28.2

7.45
7.35
7.32

0.82
0.79
0.75

7.58
7.48
7.44

24.7
25,4
25.0

74. 7
75. 8
75. 3

24.1
24.8
24.4

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

LOAN
AMT.
($000)
4

1971
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1972
Jan.
Feb.
Mar.

Compiled by F e d e r a l Home Loan Bank Board i n c o o p e r a t i o n w i t h F e d e r a l D e p o s i t I n s u r a n c e
Corporation.
Data a r e w e i g h t e d a v e r a g e s basecl on p r o b a b i l i t y sample s u r v e y of c h a r a c t e r i s t i c s of c o n v e n t i o n a l f i r s t m o r t g a g e s o r i g i n a t e d by m a j o r i n s t i t u t i o n a l l e n d e r
g r o u p s ( i n c l u d i n g m o r t g a g e c o m p a n i e s ) f o r p u r c h a s e of s i n g l e f a m i l y homes. Data e x clude loans f o r r e f i n a n c i n g , r e c o n d i t i o n i n g or modernization; c o n s t r u c t i o n loans to
h o m e - b u i l d e r s ; and p e r m a n e n t l o a n s which a r e c o u p l e d w i t h c o n s t r u c t i o n l o a n s t o ownerbuilders.
R e l a t e d s e r i e s on 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 o n l y , b a s e d on u n w e i g h t e d
o p i n i o n s of f i e l d - o f f i c e d i r e c t o r s of t h e F e d e r a l H o u s i n g A d m i n i s t r a t i o n , a r e a v a i l a b l e
somewhat s o o n e r t h a n t h e r e s u l t s of t h e FHLBB-FDIC s u r v e y , and a r e i n c l u d e d - i n t h e c a s e
of new home m o r t g a g e r a t e s - - i n T a b l e 16.
Fees and c h a r g e s - - e x p r e s s e d a s a p e r c e n t a g e of t h e p r i n c i p a l m o r t g a g e amount — i n c l u d e
l o a n c o m m i s s i o n s , f e e s , d i s c o u n t s , and o t h e r c h a r g e s which p r o v i d e added income t o t h e
l e n d e r and a r e p a i d by t h e b o r r o w e r . They e x c l u d e any c l o s i n g c o s t s r e l a t e d s o l e l y t o
t r a n s f e r of p r o p e r t y o w n e r s h i p .
I n c l u d e s f e e s & c h a r g e s a m o r t i z e d o v e r a 10 y e a r p e r i o d i n a d d i t i o n t o t h e c o n t r a c t
interest rate.
D e r i v e d by FRB.




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