Full text of H.16 Capital Market Developments : May 12, 1975
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"7^ Capital Market Developments % % f May 12,1975 Prepared by the CAPITAL MARKETS SECTION in conjunction with the MORTGAGE, AGRICULTURAL, and CONSUMER FINANCE SECTION DIVISION OF RESEARCH AND STATISTICS BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM Washington, D C. 20551 TABLES SYMBOLS 1-6 SECURITY VOLUME AND YIELDS 7, 8 STOCK MARKET AND SECURITY CREDIT 9-16 MORTGAGE MARKET e p r n.a. — ESTIMATE PRELIMINARY REVISED NOT AVAILABLE DATA DO NOT EXIST Table 1 3 YIELDS, VOLUME AND RECEPTION CORPORATE BOND MARKET WEEK ENDING 1975 - May 1 RECENTLY OFFERED A a a UTILITY 2 3 GROSS OFFERINGS ($ M I L L I O N S ) PER C E N T SOLD BY END OF W E E K N E W ISSUES 4 IN S Y N D I C A T E ($ M I L L I O N S ) 7 8.91 9.17 850 92 266 14 9.27 9.31 821 78 290 Mar. Apr. N E W ISSUE A a a UTILITY 21 9.60 9.41 1,130 79 464 28 9.60 9.62 714 96 208 4 11 9.80 9.70 9.60 576 687 97 98 47 9.65 18 9.51 9.55 821 98 13 26 25 9.66 9.71r 647 93 55 2 9.80r 9.69r 340 95 10 9 9.62p 9.56p 1,210 93 80 MUNICIPAL BOND MARKET YIELDS WEEK ENDING 1975 - Mar. Apr. VOLUME BOND BUYER 20-BQND INDEX 3 GROSS OFFERINGS ($ MILLIONS) PER C E N T SOLD BY END OF WEEK N E W ISSUES 4 IN S Y N D I C A T E ($ M I L L I O N S ) 7 6.10 6.54 613 88 14 6.20 6.65 478 78 168 21 6.35 6.80 379 66 389 28 6.45 6.95 373 91 107 154 117 4 6.45 6.93 450 76 11 6.55 18 6.40 7.03 6.86 403 455 87 90 92 91 6.45 6.97 605 84 122 25 May MOODY'S N E W ISSUE 2 6.40 6.95 451 87 109 9 6.35 6.86 613 84 130 - NOTES: 1 Federal Reserve series of implied yield on newly issued. Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection, released from price restrictions sometime during the last four weeks. 3 Estimated by F.R. on the basis of available data. 4 Corporate Market: Salomon Brothers Bond Market Roundup; Municipal Market: Weekly Bond necessary to make coverage of this series consistent with the gross offerings series. Buyer. Data are adjusted by Federal Reserve when Table 2 HIGH GRADE BOND YIELDS NEW ISSUE A a a UTILITY DATE 1971 - 1972 - 1973 - 1974 1975 1975 - - - 1 RECENTLY OFFERED Aaa UTILITY 2 MOODY'S SEASONED CORPORATE Aaa 3 U.S. GOVT. 20-YEAR CONSTANT MATURITY 4 B O N D BUYER 2 0 - B 0 N D INDEX High 8.26 (7/30) 8.23 (1/1) 7.71 (8/21) 6.51 (6/18) 6.23 Low 7.02 (2/5) 7.17 (12/31) 7.06 (2/12) 5.69 (3/23) 4.97 (10/21) High 7.60 (4/21) 7.49 (4/21) 7.36 (4/28) 6.19 (4/14) 5.54 (4/13) Low 6.99 (11/24) 7.15 (12/1) 7.05 (2/12) 5.74 (11/17) 4.96 (10/21) High 8.52 (8/10) 8.32 (8/10) 7.77 (8/24) 7.79 (8/10) 5.59 (8/3) Low 7.29 (1/21) 7.28 (1/5) 7.11 (1/5) 6.42 (1/5) 4.99 (10/11) High (6/23) 10.61 (10/4) 10.52 (10/11) 9.39 (10/11) 8.68 (8/30) Low 8.05 (2/15) 7.15 (12/12) 8.13 (1/4) 7.73 (1/4) 7.39 (1/4) 5.16 (2/7) High 9.80 (5/2) 9.71 (4/25) 9.01 (5/2) 8.41 (5/2) Low 7.08 (1/2) 8.89 (2/7) 9.06 (2/28) 8.57 (2/28) 7.63 (2/21) 6.27 (2/13) Apr. May 4 9.80 9.70 8.87 8.32 6.93 11 9.65 9.60 8.94 8.36 7.03 18 9.51 9.55 8.95 8.31 6.86 25 8.97 8.38 6.97 9.66 9.71 2 9.80r 9.69r 9.01 8.41r 6.95 9 9.62p 9.56p 8.97p 8.26p 6.86 NOTES: 1 Federal Reserve series of implied yield on newly issued, Aaa-rated utifity bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection released from price restrictions sometime during the last 4 weeks. 3 Weekly average of daily closing figures. 4 Weekly average of daily figures. U S. Treasury data. 5 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. Weekly Bond Buyer data. 5 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS IN MILLIONS OF DOLLARS GROSS PROCEEDS 1 CORPORATE PERIOD 1975 3,328 2,687 3,217 2,327 1,962 3,933 2,289 2,309 1,966 April May June 3,066 3,164 2,981 July August September October November December I 1974 | 2 STATE AND LOCAL 1973 1975 I 1974 | 1973 2,255 2,003 2,025 1,977 1,515 2,467 2,497 2,543 3,578 2,397 2,304 2,166 1,826 1,939 2,152 3,260 2,668 1,629 2,631 1,806 1,915 1,459 1,106 1,701 2,028 1,657 1,750 4,625 3,762 3,483 3,398 3,563 3,238 2,860 2,483 1,479 2,313 2,257 2,089 Q1 Q2 03 04 9,232 9,211 7,557 11,870 8,222 8,618 6,352 10,199 6,283 6,867 4,266 6,822 5,959 5,917 5,435 6,659 1st Half 3 Qtrs. Year 18,443 26,000 37,870 16,840 23,192 33,391 13,150 17,416 24,238 11,876 17,311 23,970 January February March 5,074 NOTES: 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts. -< V ' , >v-- ,"*• • V " Table 4 NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER IN MILLIONS OF DOLLARS GROSS PROCEEDS BY TYPE OF ISSUER GROSS PROCEEDS BY TYPE OF ISSUE PERIOD 1974 - I II III IV TOTAL BONDS MEMO COMMON MANUFACAND ISSUES INCLUDED PUBLICLY PRIVATELY PREFERRED TURING OFFERED PLACED FOREIGN [CONVERTIBLE STOCK PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS 9,232 9,211 7,557 11,870 5,818 5,883 5,025 8,611 1,638 1,794 1,237 1,561 1,776 1,534 1,297 1,698 88 115 373 374 58 39 310 76 1,927 2,542 1,887 4,075 3,569 3,190 2,376 3,697 874 1,313 1,008 743 2,869 2,172 2,289 3,358 1974 - Jan. Feb. Mar. 3,328 2,687 3,217 2,115 1,683 2,020 783 418 437 430 586 760 56 11 21 2 4 52 896 390 641 1,441 829 1,299 146 397 331 850 1,072 947 Apr. May June 3,066 3,164 2,981 1,594 2,350 1,939 671 607 516 801 207 526 63 42 10 12 15 12 1,202 862 478 1,131 912 1,147 294 663 356 442 730 1,000 July Aug. Sept. 3,260 2,668 1,629 2,086 2,042 897 620 299 318 555 327 415 223 — 150 205 104 1 1,094 605 188 618 1,079 680 295 364 349 1,254 620 413 Oct. Nov. Dec. 4,625 3,762 3,483 3,423 3,016 2,172 370 336 855 832 410 456 175 199 76 743 1,698 1,634 2,109 963 625 475 93 175 1,298 1,011 1,049 1975 - Jan. 5,074 3,665 833 576 309 1 1,752 1,198 925 1,197 NOTES: 1 Other issuers ere extractive, railroad and other transportation, reel estate and finance, and commercial and other. Source: Securities end Exchange Commission. 1 Table 5A / INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY May 5, thru May TYPE 1 9, 1975 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OFFERING YIELD MOODY'S RATING CORPORATE San Diego Gas & Electric Economic Laboratory Texaco Inc. Cont. Tele. Corp. Cincinnati Gas & Electric Co. Norton Co. San Diego Gas Electric Caterpillar Tractor Co. Iowa Pub. Ser. Co. Union Pacific RR Co. Asarco Inc. Asarco Inc. Northern Natural Gas Sybron Corp. Georgia Pacific Corp. Pennzoil Co. Com stk Com stk Debt Notes 1st mtge SF debt 1st mtge Conv debt 1st mtge Equip tr SF debt Notes 1st mtge Notes Conv debt Debt Other Newfoundland SF debt 16.5 27.4 300.0 75.0 60.0 40.,0 40.,0 200.,0 20.,0 15,.0 100.,0 50,,0 100,.0 35,.0 100,.0 75 .0 2005 1983 2005 2000 1982 2000 1995 1990 2000 1983 1985 1985 2000 1983 8.88 10.50 9.85 9.88 10. 70 5.50 10. 75 8.50 9.75 8.80 9.00 9.13 6.,25 10.,63 8.95 10.55 9.85 9.95 10.70 5.50 10.75 6.25-8.85 9.83 8.80 9.08 9.13 6.25 10.72 Aaa Baa/Bbb Aa A Baa/A A A/Aa Aaa A A A/A+ A Baa/Bbb Baa/Bbb 50 .0 2000 10..88 10.96 Baa-l/A - NOTES: • Rights offering. 1 Includes only corporate and other security offerings of $15 million and over; excludes options, exchanges, and secondary offerings. — — • --- 'r- -r* ^ ' — • » „ -J ' Table 50 INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY ' May 5, thru May 9, 1975 AMOUNT (MILLIONS OF DOLLARS) Minneapolis, Minn. Minneapolis, Minn. Gloucester Co. Industrial Pollution Fin. Auth., N.J. Onondaga Co., N.Y. Onondaga Co., N.Y. Kentucky State Property & Building Coram San Jose, Calif. Las Vegas Valley Water Dist., Nev. Pennsylvania State Pub. Sch. Bldg. Auth, Los Angeles Airports Improv. Corp. Los Angeles Airports Improv. Corp. Phoenix, Arizona Jersey City, N.J. Alaska, State of Michigan, State of Illinois Housing Development Auth. Ohio, State of G.O. G.O. Rev G.O. G.O. Rev G.O. G.O. Rev Rev Rev Rev G.O. G.O. G.O. Rev G.O. 14.0 1.0 25.6 4.6 11.,7 31.,0 10..0 10.,0 10..6 5.,2 6..4 .14,.0 15,.0 42,.0 100,.0 44,.8 ' 50 .0 NET INTEREST COST OFFERING YIELD MOODY'S RATING 1976-1983 1976-1995 5.20 6.15 4.00-5.40 4.00-6.40 Aaa Aaa 2000 1976-1995 1976-2005 1978-1999 197.6-2000 1978-1995 1977-2007 1976-1986 1993 1987-1989 1977-2001 1979-1999 1978-1987 1978 1976-1995 —— 5.60 5.99 7.09 7.64 7.14 6.72 8.99 8.99 6.89 8.69 6.53 5.62 7.00 5.84 6.50 4.00-6.20 4.00-6.30 4.75-7.50 6.,20-7.45 5.,25-7.30 4,.75-7.00 5.,90-8.50 9.00 6..70-6.90 6,,00-8.85 5,.00-7.10 4,.50-5.85 6.50 3,.90-6.35 Aaa Aaa Aaa A —— A-l A Baa Baa A-l Baa-1 A-l Aa — Aaa NOTES: 1 Includes only state and local security offerings of $10 million and over; excludes secondary offerings. 2 In case of State and local government securities, G.O denotes general obligation; Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev-S T., revenue bonds secured by revenue from specific taxes only; Rev -Rent., revenue bonds secured solely by lease payments. 3 Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal Agencies. Table 6A FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 1 as of May 9, 1975 ISSUER TYPE AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING CORPORATE Utah Power & Light Co. Atchison Topeka & Santa Fe RR Chesapeake & Potomac Tele. Co. of W. Va. New England Gas & Electric Assoc. Carboundum Co. Aluminum Co. of America Tenneco Inc. Florida Power & Light Co. Florida Power & Light Co. VEPCO Quaker Oats Co. Shell Oil Co. El Paso *Appalachian Power Co. Pacific Gas & Electric Burlington Northern RR Stokeley-Van Camp Inc. Pennsylvania Power & Light Wal-Mart Stores Inc. Indianapolis Power & Light Co. Columbia Gas Systems N. States Power Co. Indianapolis Power & Light Co. Consumer Power Jersey Central Power & Light Brooklyn Union Gas Co. Brooklyn Union Gas Co. *Phelps Dodge Corp. Puget Sound Power & Light Co. *Joy Manufacturing Co. Duke Power Co. Becton Dickinson *Amax Inc. *Gardner-Denver *Tektronix Inc. *Revlon Inc. *Gardner-Denver Co. NCR Corp. Pfd stk Equip tr Debt Bene int Debt Debt Debt 1st mtge Com stk Com stk Pfd stk Debt Com stk 1st mtge Com stk (rts) Equip tr SF debt 1st mtge Conv debt Com stk Pfd stk 1st mtge Pfd stk Pfd stk Pfd stk Pfd stk 1st mtge Notes Pfd stk Com stk Com stk Com stk Com stk Com stk SF debt Notes SF debt Notes 40.0 15.0 May May 13 13 50.0 84.4 40.0 150.0 100.0 100.0 50.0 60.0 50.0 250.0 60.0 50.0 153.3 15.0 30.0 125.0 15.0 30.0 50.0 80.0 20.0 30.0 25.0 15.0 35.0 100.0 15.0 47.7 70.0 53.6 95.0 22.2 35.0 50.0 50.0 75.0 May May May May May May May May May May May May May May May May May May May May May May May May May May May May May May May May May May May May 13 14 14 14 14 14 15 15 15 15 19 19 19 20 20 20 20 21 21 21 22 22 22 28 28 29 29 29 29 NOTES: * Included in table for first time. 1 Includes only corporate and other security issues of $15 million and over; excludes exchanges, options 10 v Table 6A Continued FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 3, 8 as of May 9, 1975 : ISSUER 1 % ? j I AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING CORPORATE NCR Corp. Public Service of Indiana Arkansas Power & Light Co. A' IC Products Co. N. American Car Corp. £ Barnett Banks of Fla., Inc. Avco Fin. Ser. Inc. 1 McDonalds Corp. Scott & Fetzer Co. Manufacturers Hanover Tr. Co. 4 Manufacturers Hanover Corp. Occidental Petroleum Corp. New England Tele. & Tele. *Central Illinois Public Service 1 UGI Corp. UGI Corp. i *Arizona Public Service California Water Service *Arizona Public Service *Laclede Gas Co. *Texas Electric Service *Kansas City Power & Light 4 *Texas Electric Service *Dayton Power & Light *Public Service Electric & Gas *Southern California Edison -r *Public Service of Oklahoma *Portland General Electric *Pizza Hut Inc. Dresser Industries Inc. Burlington Industries Inc. Potomac Edison Co. American Finance Corp. ERC Corp. % Ashland Oil Inc. Emerson Electric Co. First Maryland Bancorp 1 TYPE 1 Other Quebec New Brunswick British Columbia Hydro & Power Debt 1st mtge 1st mtge Debt Equip tr Notes Notes Notes Notes Debt Notes Notes Debt Com stk 1st mtge Pfd stk Com stk 1st mtge 1st mtge 1st mtge 1st mtge Com stk Pfd stk Com stk Com (rts) Pfd stk 1st mtge 1st mtge Conv debt SF debt SF debt 1st mtge Debt Debt Debt Notes Notes 75.0 85.0 60.0 50.0 25.0 50.0 50.0 80.0 30.0 75.0 125.0 75.0 175.0 20.0 25.0 15.0 28.0 26.0 50.0 20.0 50.0 15.0 30.0 20.0 45.0 50.0 45.0 28.0 25.0 75.0 75.0 35.0 30.0 25.0 100.0 50.0 25.0 May May May May May May May May May May May May June June June June June June June June June June June June June June June June INDEF INDEF INDEF INDEF INDEF INDEF INDEF INDEF INDEF Debt Debt Guar SF debt 100.0 75.0 125.0 May 13 May 19 INDEF 3 3 4 4 4 4 5 10 10 10 10 10 11 11 12 12 11! Table 6B FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 1 as of May 9, 1975 TYPE ISSUER AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING STATE & LOCAL Tucson, Arizona Florida State Board of Education Maryland, State of *Tampa Sports Auth., Fla. *Port of Portland, Oregon Springfield, Oregon Missouri State Environmental Auth. Texas, State of Jtiew York State Power Authority *Ponca City Utility Auth., Okla. ^Mississippi, State of ^Mississippi, State of Oregon, State of Antelope Valley-East Kern Water Agency, Calif. *Detroit, Mich. *Pima Co., Arizona *Port of Oakland, Calif. ^Vermont Housing Finance Agency *Palatine Tp. High Sch. Distr7/211 111. Cleveland City Sch. Dist., Ohio Ascension & St. Charles Parishes, La. *Denver, Colo. Lower Colorado River Auth., Texas Ohio, State of Postponements New York State Dormitory Auth. Rev Rev G.O. Rev Rev Rev Rev G.O. Rev Rev G.O. G.O. G.O. 10.0 48.6 89.0 13.7 15.0 14.0 22.0 11.0 150.0 12.0 50.0 20.0 125.0 May May May May May May May May May May May May May 12 13 14 14 14 14 14 14 15 19 20 20 20 G.O. G.O. G.O. Rev Rev 23.0 10.9 15.0 18.0 15.7 May May May May May 20 21 21 21 22 G.O. G.O. 13.5 30.0 May May 22 22 Rev G.O. Rev G. 0. 45.0 15.0 50.0 30.0 May May June June 22 28 3 3 Rev 58.0 May NOTES: 1 Includes stats and local government issues of $10 million and over, foreign government, International Bank for Reconstruction issues of Federally sponsored agencies; excludes secondary offerings. • Included in the table for the first time. 8 " -e. -<V» ,; i v ; „ - **"' " '' ' Table 7 STOCK PRICES AND VOLUME 1 STOCK PRICES DAI E NYSE INDEX 1973 - High 65.48 (1/11) Low 49.12 (12/13) 3 4 2 TRADING VOLUME | AMEX | NASDAQ AMEX 1051. 50 (1/11) 788. 31 (12/5) 130.47 (1/11) 85. 26 (12/20) 136.84 (1/11) 89.12 (12/13) 26.0 (9/20) 9.0 (8/20) 5.5 (1/12) 1.4 (8/20) 11.3 (1/11) 3.5 (8/27) 1 NASDAQ NYSE GJ INDUSTRIALS 1974 - High 53. 37 (3/13) Low 32.89 (10/3) 891. 66 (3/13) 577. 60 (12/6) 102.01 (3/14) 59.13 (12/6) 96.,53 (3/15) 54.87 (10/3) 24.,9 (1/3) 7.5 (7/5) 4.4 (1/3) .9 (9/26) 7.5 (1/3) 2.8 (7/5) 1975 - High 46. 24 (4/21) Low 37 ,16 (1/8) 819.46 (4/17) 632.,04 (1/2) 84. 36 (4/21) 62.,20 (1/2) 79.,08 (4/21) 60..70 (1/2) 35..2 (2/13) 13..4 (1/20) 4.2 (2/21) 1.5 (1/21) 8. 1 (2/13) 3.,6 (1/20) 1975 Mar. 7 14 21 28 44.,55 44..74 44,.26 44,.46 770. 10 773.,47 763..06 770,.26 77., 66 80..00 80..47 80..01 74,.40 76..07 75,,92 76.18 26,.0 24..4 24,.4 18,.3 2.6 3.0 3.0 2.1 5..9 6.,2 6.,2 5,.2 Apr. 4 11 18 25 42,.98 44,.61 45,.75 45 .95 747,,26 789 .50 808,.43 811 .80 79,.01 81 .24 83 .41 84,.18 74 .73 76 .31 78 .08 78 .64 14 .9 18 .3 26 .9: 21,.9 1.8 2.1 3.0 2.5 4..8 5.0 6,.8 6 .2 2 9 47,.18 47,.94 848.48 850,.13 84 .91 87,.39 80 .25 82 .82 19,,9r 18,.6 2.3r 2.2 5.. 6r 5..4 May NOTES: 1 2 3 4 Figures other then highs and lows are Fridays only. Highs and lows are for the year and are not necessarily for Fridays. Volume figures are weekly averages of daily figures (millions of shares). 12/31/66 - 60 Based on average price change until September 4,1973 thereafter, based on market value of shares listed. Table 8 ^ SECURITY CREDIT "w R E G U L A T E D M A R G I N C R E D I T E X T E N D E D BY E N D O F PERIOD BROKERS ON MARGIN STOCK 1 BROKERS ON 2 CONVERTIBLE BONDS a BANKS HiUOPfSlll ND U N n C U U LA nT l CCln/ M UN n rMnA MRn fUi liN n STOCK CREDIT AT BANKS OUTSTANDING 1974 - Mar. 5,330 180 1,008 1,869 Apr. 5,370 179 1,009 1,868 5,180 172 1,020 1,858 5,080 172 1,037 2,072 May 1975 . July-- 4,760 158 1,023 2,091 Aug. 4,510 156 953 2,119 Sept. 4,020 148 924 2,060 Oct. 3,930 145 916 2,024 Nov. 3,960 139 891 2,053 -.Dec. 3,840 137 856 2,064 1,919 1,897 - 3,950 134 Feb. 4,130 136 848 830 Mar. Jan. 4,180 134 — Mar. 100 -3 -31 26 Apr. 40 -1 1 -1 -190 -7 C H A N G E IN O U T S T A N D I N G 1974 - May -100 - -10 214 19 July -320 -14 -14 Aug. -250 -3 -70 28 Sept. -490 -7 -29 -59 -90 -3 -8 -36 +29 Oct. 1975 11 17 Nov. -30 -6 -25 Dec. -120 -2 -35 +11 Jan. 110 -3 —8 Feb. 180 2 -18 -145 -22 Mar. 50 -2 NOTES: 1 Margin account debt as reported by the New York Stock Exchange, excluding credit for subscription issues and convertible bonds. 2 New York Stock Exchange data. 3 June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which accounted for 60 per cent of security credit outstanding at banks on June 30. 4 Nonmargin stocks are those not listed on a national securities exchange and not included on the Board of Governor* of the Federal Reserve System's list of OTC margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no 4 Table 9 SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN MILLIONS OF DOLLARS MUTUAL SAVINGS BANKS REGULAR DEPOSITS NET FLOW 1971 1972 1973 1974 9,621 10,067 4,815 2,909 1 ANNUAL 3 GROWTH RATE 13.5 12.4 5.3 3.0 1973 - December 1974 - January February 1,057 257 521 —— 1974 - December 1975 - January r/ February xj March j>/ 1,053 471 909 2,052 —— SHARE CAPITAL NET FLOW 27,793 32,567 20,237 16,008 -42 46 341 2,914 2,177 1,824 -37 250 708 1,029 3,385 3,2.67 3,297 6,484 — — 2 5,378 5,451 -442 -2,822 -- — SAVINGS & LOAN ASSOCIATIONS NET NEW MONEY ANNUAL 3 GROWTH RATE 19.0 18.7 9.8 7.0 -— —— —— NET NEW MONEY TOTAL 2 DEPOSITS NET FLOW 20,653 23,884 10,507 4,669 37,414 42,634 25,052 18,9.17 406 2,018 1,697 3,971 2,434 2,345 571 3,094 3,114 3,689 4,438 3,738 4,206 8,536 ANNUAL 3 GROWTH RATE 17.2 16.7 8.4 5.8 —— — __ -—— — NET NEW MONEY 26,331 29,335 10,062 1,847 364 2,064 2,038 534 3,344 3,822 4,718 SEASONALLY ADJUSTED 1974 - September October November December 1975 - January February March £/ 172 260 535 431 2.1 3.2 6.6 5.3 —— 369 715 1,489 4.5 8.7 18.0 —— —— —— — .• - — 818 1,277 1,752 2,486 4.1 6.4 8.8 12.3 2,455 3,057 4,833 12.1 14.9 23.3 M— —— 990 1,537 2,287 2,917 3.6 5.5 8.1 10.3 2,824 3,772 6,322 9.9 13.1 21.7 NOTES: 1 Regular deposits et mutual savings banks exclude Hems such es Christmas dub and certain escrow accounts, which represent a very small part of total deposits. 2 New deposits net of both*withdrawals and interest. Data for S&L's are for insured associations only, which represent 96 per cent of industry total resources. 3 Annual prewth rata for monthly data is the annualized monthly percentage increase in deposits. Sowoe: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. —— — 2 Table 10 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS OF DOLLARS, SEASONALLY ADJUSTED OUTSTANDING COMMITMENTS PERIOD TOTAL • ALL SAVINGS MUTUAL & LOAN S A V I N G S BKS5 ASSOCIATIONS ( N . Y . S T A T E ) NET CHANGE TOTAL ALL SAVINGS MUTUAL & LOAN SAVINGS BKS ASSOCIATIONS (N.Y. S T A T E ) 1971 -Dec. 17.7 14.0 3.7 .49 .30 .19 1972 - Dec. 25.1 20.2 4.9 .56 .55 .01 1973 - Jan. 25.8 20.8 5.0 .80 .66 .14 Feb. 25.8 20.9 4.9 .21 .11 -.10 Mar. 1974 1975 25.4 20.6 Apr. 24.8 20.2 4.6 -.57 -.40 -.17 May 24.0 19.5 4.5 -.89 -.77 -.12 June 23.7 19.3 4.4 -.21 -.15 -.06 4.8 -.43 -.28 -.15 July 23.1 18.8 4.3 -.67 -.56 -.11 Aug. 22.2 18.0 4.2 -.92 -.75 -.17 Sept. 21.0 17.0 4.0 -1.15 -1.00 -.15 Oct. 20.0 16.1 3.9 -1.06 -.90 - . 16 Nov. 19.6 15.9 3.7 -.41 -.26 - .15 Dec. 19.7 16.2 3.5 .15 .35 -.20 - Jan. 19.3 15.9 3.4 -.33 -.33 -.10 Feb. 19.4 16.0 3.2 -.06 .13 -.19 Mar. 19.5 16.4 3.1 .20 .33 -.13 Apr. 19.7 16.7 3.0 .20 .30 -.10 -1.02 -.06 May 18.5 15.6 2.9 -1.08 June 18.0 15.1 2.9 -.61 - .54 -.06 July 1 7 .3 14.5 2.8 - .64 -.60 - .04 Aug. 16.7 13.9 2.8 -.56 -.55 -.01 Sept. 16.2 13.5 2.7 -.56 -.43 -.13 Oct. 14.9 12.5 2.4 -1.31 -1.01 -.30 14.4 12.1 2.3 - .54 -.44 -.10 Dec. 14.4 12.2 2.2 -.03 .14 -.11 - Jan. 14.4 12.3 2.1 -.04 .06 -.10 Feb. 14.4 12.6 1.8 .05 .30 -.25 Mar. 15.2 13.2 2.0 .72 .61 . 11 NOTES: Based on data from Federal Home Loan Bank Board and Savings Banks Association of New York State. Both series include a minor amount of nonresidential commitments; S&L commitments also include loans in process. Net changes are derived directly from unrounded end-of period outstanding levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. S e r i e s r e v i s e d d u e to r e e s t i m a t i o n of s e a s o n a l f a c t o r s . Table 11 NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN MILLIONS OF DOLLARS PERIOD TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES INTERMEDIATE AND LONG-TERM ISSUES TOTAL FHLB FHLMC . FNMA & FHLB FNMA SHORT-TERM DISCOUNT NOTES1/ +530 1973 - July Aug. Sept. Oct. Nov. Dec. +1,475 +1,693 +1,910 +1,946 +11 +598 +1,528 +1,349 +1,850 +1,950 -150 +256 +998 +1,349 +1,500 +1,300 1974 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. p -671 -695 +424 +508 +1,442 +2,699 +1,804 +878 +2,768 +1,665 -89 +595 -756 -657 4450 -4 +992 +2,250 +1,499 +200 +2,750 +1,599 +93 41,000 -800 -657 —— +44 — —— —— — +450 -4 +992 +1,500 +1,000 +400 +1,700 +1,499 -217 +500 -- — -- — 1975 - Jan. p -12 +350 +650 — —— -150 —— — Notes: Based"on data from the Treasury Survey of Ownership. 1/ Sales of FHLB discount notes began in May 1974. Preliminary. — —— - — -200 —— —— — • — +256 +750 +499 — . +1,050 +100 +310 +500 -53 +344 +60 -4 +161 +342 +85 -38 -26 +512 +450 +449 +305 +678 +18 +66 -182 -405 -12 Table 12 '17 NET CHANGE IN MORTGAGE HOLDINGS IN MILLIONS OF DOLLARS PERIOD TOTAL INCLUDING FNMA-GNMA FINANCIAL INSTITUTIONS TOTAL COMMERCIAL BANKS MSB's S & L's 2 INSURANCE FNMA-GNMA COMPANIES Not Seasonally Adlusted 1,845 3,938 5,377 5,642 2,170 10,254 23,919 31,932 25,552 17,578 2,348 1,221 1,452 4,278 5,078 4,909 2,388 2,026 3,300 6,222 45 79 - 22 565 522 595 545 475 729 764 516 453 428 100 66 -200 1,111 100 0 1,616 Seasonally Ad lusted 268 403 451 74 351 21,736 41,647 57,587 58,372 42,748 16,827 39,259 55,561 55,072 36,526 2,462 9,940 16,800 19,600 11,700 1974 - Oct. Nov. Dec. 2,419 1,992 2,255 1,655 1,476 1,082 500 400 500 1975 - Jan. Feb. Mar . 1,313 1,488 862 1,414 1974 - Oct. Nov. Dec. 2,847 2,461 1,986 2,205 1,973 1,456 533 509 734 98 67 -102 1,037 985 629 537 412 195 642 488 530 1975 - Jan. Feb. Mar. 2,614 2,729 2,108 2,530 447 84 53 170 242 1,156 1,648 1,413 335 556 506 199 525 1970 1971 1972 1973 1974 NOTES: 1 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 89 per cent of the net increase estimated for all holders in 1972. 2 Beginning January 1972 data reflect activity in limited amount of conventional mortgages. Digitized forSeries FRASER revised due to reestimation of seasonal factors . -18 " ~ T a b l e 13 NET INCREASE IN MORTGAGE DEBT OUTSTANDING1 IN BILLIONS O F 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 A N N U A L R A T E S 2 3 RESIDENTIAL TOTAL 1968 - I II III IV 28.1 26.4 25.5 29.6 19.4 18.2 17.2 20.4 16.3 15.0 13.6 16.5 3.1 3.2 3.5 3.9 6.4 6.0 6.5 7.4 9.5 9.2 10.1 11.3 2.3 2.2 1.8 1.9 1969 - I II III IV 32.0 29.1 25.8 25.2 23.8 21.5 18.7 18.5 19.4 16.8 14.0 13.1 4.4 4.6 4.7 5.4 6.0 5.4 5.3 5.3 10.4 10.1 10.0 10.7 2.2 2.2 1.7 1.4 1970 I II III IV 20.7 22.9 28.5 31.8 14.4 16.8 21.3 22.8 9.4 11.6, 15.0 16.2 5.0 5.2 6.3 6.6 4.8 4.6 5.1 6.8 9.8 9.8 11.5 13.4 1.5 1.5 2.1 2.2 1971 - I II III IV 37.3 47.7 52.3 54.2 27 .4 35.5 38.5 41.2 19.4 26.2 28.6 31.3 8.0 9.4 9.9 9.9 7.7 9.8 11.5 10.5 15.7 19.2 21.4 20.4 2.2 2.4 2.3 2:5 1972 - I II III IV 62.8 64.9 65.1 68.3 46.1 47.0 47.1 49.5 37.7 37.4 38.0 40.0 8.4 9.6 9.1 9.5 14.1 15.3 15.3 16.3 22.5 24.9 24.4 25.8 2.6 2.6 2.6 2.5 1973 - I II III IV 83.4 75.6 71.3 57.9 63.1 53.9 51.4 38.3 53.1 44.0 41.8 31.7 10.0 9.9 9.6 6.5 16.3 17.8 16.3 15.0 26.3 27.8 25.9 21.5 4.1 3.8 3.6 4.6 1974 - I II III IV 58.5 65.3 50.0 38.6 39.5 44.0 35.7 23.7 32.1 37.1 27.5 17.3 7.4 6.8 8.2 6.4 15.4 17.3 9.0 7.6 22.7 24.1 17.2 14.0 3.6 4.0 5.3 7.3 TOTAL 1- t o 4 FAMILY MULTIFAMILY COMMERCIAL MULTIFAMILY & COMMERCIAL QUARTER FARM NOTES: 1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations and extrapolations, where required, estimated mainly by Federal Reserve. May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. Residential mortgage debt includes nonfarm only and is sum of 1 to 4- family and multifamily mortgage debtjoawbined. Table 14 PRIVATE HOUSING PERMITS, STARTS, COMPLETIONS, AND MOBILE HOME SHIPMENTS IN THOUSANDS OF UNITS, SEASONALLY ADJUSTED ANNUAL RATES PERMITS PERIOD 2-OR MORE FAMILY TOTAL STARTS 1—FAMILY 2 - O R MORE , FAMILY TOTAL COMPLETIONS MOBILE 1—FAMILY 2-OR MORE HOME FAMILY SHIPMENTS TOTAL 1—FAMILY 1969 1970 1971 1972 1973 1974 1,324 1,352 1,952 2,219 1,820 1,052 626 647 928 1,033 882 726 698 705 1,025 1,186 937 419 1,467 1,434 2,052 2,357 2,045 1,338 811 813 1,151 1,309 1,132 888 656 621 901 1,048 914 450 1,399 1,418 1,706 1,972 2,005 808 802 1,014 1,143 1,166 592 617 692 828 838 413 401 497 576 580 1974 - July Aug. Sept. Oct. Nov. Dec . 1,017 900 823 782 730 822 632 618 577 533 511 486 385 282 246 249 219 336 1,314 1,156 1,157 1,106 1,017 880 920 826 845 792 802 682 394 330 312. 314 215 198 1,655 1,592 1,562 1,627 1,657 1,606 934 919 899 908 893 852 721 674 663 719 763 754 380 370 316 248 218 216 682 714 710 495 524 517 187 190 193 999 986 980 739 722 757 260 264 223 1,544 1,266 965 755 578 512 185 219 1975 - Jan. Feb. Mar. NOTES: Private permits (for 14,000 areas with permit systems, excluding farm), starts, and completions are Census Bureau data. A dwelling unit is started when excavation begins. In the case of apartment buildings, all units are considered started at that tiitid; however, all such units are considered completed when more than half of the units in the structure are ready for use. Private mobile home shipments' are Mobile Home Manufacturers Assoc. data converted to seasonally adjusted annual rate by Census Bureau. 1/ for Permit data for 1969 and 1970 based on 13,000 areas with permit systems. Digitized FRASER Table 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES HUD(FHA) INSURED LOANS SECONDARY MARKET NEW HOMES 1 CONVENTIONAL LOANS PRIMARY MARKET EXISTING HOMES NEW HOMES 1 PERIOD RATE (IN PER CENT) SPREAD (BASIS POINTS) 1 RATE (IN PER CENT) SPREAD (BASIS POINTS) YIELD (IN PER CENT) SPREAD (BASIS POINTS) SPREAD BETWEEN RETURNS ON NEW A a a ( CONVENTIONAL UTILITY AND HUD(FHA) BOND DISCOUNT NEW HOME YIELD (PERCENTAGE MORTGAGES (IN PER CENT) POINTS) (BASIS POINTS) 1973 - H i g h Low 8.95 7.70 107 31 8.95 7.75 107 37 9.18 7.55 130 14 9.4 2.2 21 -23 8.36 7.38 1974 - High Low 9.80 8.55 45 -70 9.80 8.60 50 -70 10.38 8.54 44 -25 6.3 2.3 1 -70 10.46 8.10 1974 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 8.65 8.55 8.60 8.90' 9.15 9.25 9.40 9.60 9.80 9.70 9.55 9.45 40 45 -4 -8 6 -25 -70 -39 -66 -33 -13 n.a. 8.65 8.60 8.60 8.90 9.15 9.25 9.40 9.60 9.80 9.70 9.60 9.45 40 50 -4 -8 6 -25 -70 -39 -66 -33 -8 n.a. 8.54 8.66 9.17 9.46 9.46 9.85 10.30 10.38 10.13 n.a. 9.51 n.a. 2.3 3.2 5.1 5.3 5.3 6.3 5.8 6.3 4.6 n.a. 3.8 n.a 1 -6 -27 -31 -21 -45 -70 -58 -43 8.25 8.10 8.64 8.98 9.09 9.50 10.10 9.99 10.46 10.03 9.68 1975 - Jan. Feb. Mar. 9.15 9.05 8.90 15 11 -70 9.20 9.05 8.95 20 11 -65 8.99 8.84 8.69 44 2 19 37 -4 -25 31 -8 10 -1 -10 -91 3.8 2.6 5 .4 ' -6 16 21 21 9.00 8.94 9.60 NOTES: 1 Gross yield spread is average mortgage returi) before deducting servicing costs, minus average yield on new issues of high-grade utility bonds with 5-year call protection. Rates on conventional first mortgages (excluding additional fees and charges) are based on unweighted HUD (FHA) field office opinions on prevailing contract interest rates in the market areas of the insuring offices, rounded to the nearest 5 basis points. For secondary market data, weighted HUD office opinions on the average bid price for HUD (FHA) loans with minimum downpayment, prepaid in 15 years, for immediate delivery, are used. ^ ^ Table 16 ^ FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS CONVENTIONAL GOVERNMENT-UNDERWRITTEN AMOUNT (IN MILLIONS OF DOLLARS) DATE OF AUCTION AVERAGE YIELD AMOUNT (IN M I L L I O N S O F D O L L A R S ) AVERAGE YIELD OFFERED 1974 1155 High 26 Low 1975 - Jan. Feb. Mar. Apr. 333 18 (3/25) (11/18) 10.59 (9/9) 164 8.43 (2/25 14 (4/18) (10/21) 63 7 (4/8) (11/18) 10.71 8.47 13 25.3 21.2 9.37 17.9 14.9 9.50 27 41.4 28.6 9.12 11.1 10.6 9.39 10 24.6 18.1 8.98 14.8 24 36.2 23.8 8.87 20.0 9.1 9.20 9.1 9.04 8.96 10 99.2 60.1 8.78 34.4 22.1 24 460.5 321.4 8.85 60.7 35.8 9.00 551.6 2 7 7 .2 3.98 99.8 44.6 9.13 470.9 247.3 ). 1 3 79.2 64.8 9.26 525.5 280.4 9.29 69.8 43.9 9.43 7 21 May (3/25) (11.18) (9/9) (3/11) NOTES: Average secondary market yields are gross before deduction of the fee of 38 basis points 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 Federal National Mortgage Association (FNMA) commitment fees and FNMA stock purchase and holding requirements on 4-month commitments. Mortgage amounts offered by bidders relate to total eligible bids received.
@FedFRASER