Full text of H.16 Capital Market Developments : May 29, 1973
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G H.16 LIBRARF JUN 2 1 May 29, 1973 P r e p a r e d by t h e C A P I T A L M A R K E T S SECTION in c o n j u n c t i o n w i t h t h e M O R T G A G E , A G R I C U L T U R A L , and CONSUMER F I N A N C E S E C T I O N - Ni o CAPITAT MARKET DEVELOPMENTS DIVISION O F R E S E A R C H AND S T A T I S T I C S BOARD OF GOVERNORS F E D E R A L R E S E R V E SYSTEM Washington, D C. 20551 INDEX 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 BOND MARKETS C A P I T A L MARKET Y I E L D S C A P I T A L MARKET VOLUME STOCK MARKET MORTGAGE M A R K E T SYMBOLS e ESTIMATE P PRELIMINARY r REVISED n.a. NOT AVAILABLE — — D A T A DO NOT E X I S T 1 Table 1 YIELDS, VOLUME AND RECEPTION CORPORATE BOND MARKET WEEK E N D I N G 1973 - Apr. May RECENTLY 2 OFFERED Aaa UTILITY NEW ISSUE 1 Aaa UTILITY 6 13 20 27 7.51 7.45 7.40 4 11 18 25 7.45 7.59 GROSS 3 OFFERINGS ($ MILLIONS) 7.50 7.47 7.52 7.42 139 83 • 70 492 7.42 7.45 7. 5 0 r 7.55 205 39 154 139 PER CENT SOLD BY END OF WEEK 90 100 100 93 97 72 88e NEW ISSUES 4 IN SYNDICATE ($ MILLIONS) 4 0 0 45 61 0 44 30e MUNICIPAL BOND MARKET VOLUME YIELDS WEEK ENDING 1973 - Apr. May 6 13 20 27 4 11 18 25 MOODY'S NEW ISSUE ' BOND BUYER 2Q-BOND INDEX GROSS 3 OFFERINGS ($ MILLIONS) PER CENT SOLD BY END OF WEEK NEW ISSUES 4 IN SYNDICATE ($ MILLIONS) 5.05 4.85 4.90 5.00 5.22 5.07 5.17 5.14 304 . 657 286 286 90 94 67 77 55 56 105 76 4.85 4.85 4.85 4.95 5.10 5.10 5.14 5.20 354 334 540 434 88 64 83 81 72 162 126 143. . 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 'Buyer. Data are adjusted by Federal Reserve when necessary to make coverage of this series consistent with the gross offerings series. H.16 Table 2 HIGH GRADE BOND YIELDS NEW I S S U E A a a UTILITY DATE 1 RECENTLY OFFERED A a a UTILITY 2 M O O D Y ' S SEASONED CORPORATE Aaa 3 U.S. G O V T 2 0 - Y E A R CONSTANT MATURITY 4 BOND BUYER 2 0 - B 0 N D INDEX 1971 - High Low 8.26 (7/30) 7.02 ( 2 / 5 ) 8.23 (1/1) 7.17 ( 1 2 / 3 1 ) 7.71 (8/12) 7.06 ( 2 / 1 2 ) 6.51 (6/18) 5.69 (3/23) 6.23 (6/23) 4.97 (10/21) 1972 - High Low 7.60 (4/21) 7.99 ( 1 1 / 2 4 ) 7.46 (5/12) 7.17 ( 1 / 7 ) 7.36 ( 4 / 2 8 ) 7.05 ( 1 2 / 8 ) 6.19 (4/14) 5.74 (11/17) 5.54 (4/13) 4.96 (10/21) 1973 - High Low 7.59 ( 5 / 2 5 ) 7.29 ( 1 / 2 1 ) 7.59 (3/23) 7.28 ( 1 / 5 ) 7.32 ( 5 / 2 5 ) 7.11 (1/5) 7.03 (5/25) 6.42 ( 1 / 5 ) 5.35 (3/22) 5.03 (1/12) 6 13 20 27 7.51 7.50 7.47 7.52 7.42 7.27 7.25 7.25 7.27 6.87 6.84 6.84 6.88 5.22 5.07 5.17 5.14 4 11 18 25 7.40 7.42 7.45 7. 50 7.55 7.26 7.26 7.29 7. 32p 6.94 6.98 6.98 7. 03p 5.10 5.10 5.14 5.20 1973 - Apr. May -- 7.45 7. 45 7.59 5 NOTES: 1 Fedewrt Beterve 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 4 3 Weekly average of daily closing figures. 4 Weekly average of daily figures. U.S. Treasury data. 5 Thursday fiyires. 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. ' H.16 Table 3 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS IN M I L L I O N S OF D O L L A R S 1973 January February March I 2,327 1,962 3,935 April . May June July August September October November December Q1 G R O S S PROCEEDS 1 CORPORATE PERIOD 8,224 02 03 04 1st Half 3 Qtrs. Year 2 S T A T E A N D LOCAL 1972 1971 1973 3 ,205 3 ,369 3 ,229 3,115 3,000 6,075 1,978 1,481 2,353 1,776 2,005 2,239 2 ,732 1, 8 5 1 2,25a 3 ,275 3 ,598 4 ,341 4,042 3,300 4,375 1,525e 1,989 2,017 2,270 1 ,891 2 ,167 2 ,013 3 ,582 2 ,893 2 ,720 4,147 2,532 3,768 1,805 1,966 1,726 1 ,989 1 ,903 2.,098 3 ,791 3 ,377 3.,396 3,387 3,704 3,673 2,200 1,861 1,794 1,,728 2,,264 2S,068 9.,803 11,,214 9a,195 10,,564 12,190 11,688 10,44710,764 21, ,017 30, ,212 40, ,776 23,844 34,325 45,089 5,812 1 1972 1 1911 6,020 6,276 5,494 5,855 5, 990 6, 060 12,296 17,790 23,645 12, 812 18, 902 24, 962 6 j,841 6 , ,081 NOTES: 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts. H.16 NEW CORPORATE SECURITY I S S U E S BY TYPE OF ISSUE AND ISSUER IN M I L L I O N S OF DOLLARS G R O S S PROCEEDS BY T Y P E O F I S S U E PERIOD 1972 - I I III IV TOTAL 11,214 9,195 10,564 G R O S S P R O C E E D S BY T Y P E O F ISSUER BONDS COMMON MEMO AND MANUFACPUBLICLY PRIVATELY ISSUES INCLUDED TURING OFFERED PLACED PREFERRED STOCK FOREIGN [CONVERTIBLE 4,634 2,781 3,798 245 449 2,109 4,192 1,867 3,136 57 836 1,629 4,158 3,147 3,258 245 428 1,398 COMMUNICATIONS OTHER ISSUERS 3,495 2,680 2,93^ 1,369 856 1,079 4,240 4,030 5,151 1973 - I 8,224 2,944 1,407 3,970 n.a. 112 887 2,427 1,229 3,681 1972 - Mar. 3,229 1,677 577 976 3 233 604 740 227 1,658 Apr. May June 3,275 3,598 4,341 1,622 1,676 1,336 789 744 1,218 864 1,148 1,786 15 100 130 92 226 131 581 761 767 1,219 • 738 1,538 178 391 800 1,297 1,708 1,235 July Aug. Sept. 3,582 2,893 2,720 1,807 1,523 863 657 421 789 1,118 948 1,070 3 17 37 450 183 203 574 452 603 798 635 1,247 586 237 33 1,624 1,568 838 Oct. Nov. Dec. 3,791 3,377 3,396 1,773 1,361 1,024 564 982 1,601 1,454 1,034 770 28 124 93 162 171 95 383 426 589 1,280 794 860 371 658 50 1,757 1,499 1,895 1973 - J a n . Feb. Mar. 2,327 1,962 3,935 989 641 1,314 287 316 804 1,050 1,104 1,816 14 27 n.a. 81 28 3 176 213 498 900 596 931 33 174 1,022 1,218 980 1,483 NOTES: 1 PUBLIC UTILITY Othjer issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: Securities and Exchange Commission. Estimated data are derived by Federal Reserve based upon iavailable information. 1 LARGE LONG-TERM PUBLIC SECURITY I S S U E S FOR NEW CAPITAL OTHER THAN U.S. TREASURY May 1, 1973 through May 25, 1973 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) Bonds Com s t k Bonds 1 s t mtge 1 s t mtge Com s t k Bonds Debs Pref stk Com s t k Com s t k Pref stk Bonds Bonds Bonds Com s t k 1 s t mtge Com s t k 1 s t mtge Pref s t k Com s t k Pref s t k 1 s t mtge 25.0 22.3 40.0 40.0 75.0 55.0 25.0 25.0 65.0 49.4 69.0 25.0 75.0 50.0 15.0 23.6 25.0 72.9 100.0 40.0 151.9 15.2 14.0 MATURITY OFFERING YIELD MOODY'S RATING 7 1/2 7.48 Aa 7 1/2 8.00 7 3/4 7.45 8.07 7.78 Aa Baa A COUPON RATE CORPORATE Gulf Power Toledo Edison H a r t f o r d E l e c t Co. J o n e s & L a u g h l i n S t e e l Corp. Seaboard C o a s t l i n e RR Co. E x c e l s i o r Income S h a r e s , I n c . G r e a t American Mortgage I n v e s t . Alison Mtge. I n v e s t o r s Pennzoi.l Co. B a l t i m o r e Gas & E l e c . CNA Income Shares Dayton Power & L i g h t Beneficial Fin. Columbia Gas M i s s i s s i p p i Pwr. Columbus & Ohio E l e c t . Orange & Rockland U t i l . General P u b l i c U t i l . C a r o l i n a Pwr. & L t . T r a n s c o n t i n e n t a l Gas Pipe Line Co. Con. Edison of N.Y. W i s c o n s i n Pwr. & L t . GTE of Kentucky 2003 —- 2003 1998 1998 - - — 8 3/4 8.75 8.00 1983 1983 - - — - - - — 8.75 8.75 8.00 — - — — • — — 1998 1998 2003 7.38 7 1/2 7.62 7 5/8 7.38 7.48 7.57 7.63 2003 t 8.13 7.97 Baa 2003 7.75 8.64 7.72 8.64 A 7.56 7.75 7.48 7.80 - - ' — . - - 2003 \ — - - " A A A • T a b l e 5A C o n t i n u e d LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY May 1, 1973 through May 25, 1973 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY CORPORATE Canadian American Resources Aetna Income Shares I n c . Bene. I n t . Com s t k 45.0 34.5 C O U P O N RATE NOTES: $15 million and over. MOODY'S RATING \ -- - - / * Rights offering. http://fraser.stlouisfed.org/ 1 Includes corporate and other security offerings of Federal Reserve Bank of St. Louis OFFERING YIELD - — T a b l e 5B Continued LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY May 1 through May 25, 1973 AMOUNT (MILLIONS OF DOLLARS) COUPON RATE OFFERING YIELD MOODY'S RATING STATE AND LOCAL New York S t a t e Dormitory Auth. New York S t a t e Dormitory Auth. Phoenix, A r i z . B i l l e r i c a , Mass W a t e r b u r y . Conn Gulf Coast Waste D i s p o s a l Auth, Tex. Gulf Coast Waste D i s p o s a l Auth, Tex. I n d i a n a U n i v e r s i t y of Akron, Ohio Monroe Co., Mich. Monroe C o . . Mich. Ohio Pub. Fac. Comm. No. A l a . Env. Imp. Auth. No. A l a . Env. Imp. Auth. Mass. H e a l t h & Ed. f a c . Auth. Mass. H e a l t h & Ed. Fac. Auth. S t . James & S t . Bernard P a r . La. S t . James & S t . Bernard P a r . La. Beaver Beaver BeaverBeaver Co. Co. Co. Co. Ind. Ind. Ind. , Ind. , Dev. Dev. Dev. Dev. Auth. Auth. Auth. Auth. Pa. Pa. Pa. Pa. Ref. 35. 5 Ref. 72. 2 G.O. 13. 0 G.O. 10. 3 G.O. 10. 0 Rev. 12. 5 Rev. 12. 5 Rev. 10. 0 P o l l . Cont. Rev. 36. 0 P o l l . Cont. Rev. 10.,0 Rev. 40,,0 P o l l . Cont. Rev. 24,,5 P o l l . Cont. Rev. 3,.0 Rev. 5,.9 Rev. 5.4 P o l l . Cont. Rev. 11 .0 P o l l . Cont. Rev. 9 .0 Pol. Con. Rev. 3.8 Pol. Con. Rev. 17 .7 Pol. Con. Rev. 13 . 0 Pol. Con. Rev. 34 . 0 1983-2001 1983-1999 1978-1984 1974-1993 1974-1991 1984-1993 1998 1974 2003 1978-1987 1974-1998 5..35 5. 0 0 - 5 . 7 0 5. 0 0 - 5 . 7 0 4 . 20-4.60 4 . 10-5.30 4 . 10-5.00 5. 0 0 - 5 . 5 0 5. 75 4. 00-5.50 -- 5.75 5. 80 5. 77 4. 62 5.,13 4.,86 --- - - 5 .08 1993 1978-1987 2000 1976-1987 - — - - - 1998 1976-1988 1984-1993 2003 1984-1994 2008 - - — • - - A — Aa A Aa Baa Baa A 4., 6 0 - 5 . 2 0 4., 1 0 - 5 . 2 5 A Aa 6.13 A 4,. 6 0 - 5 . 2 0 5.80 : 4.50-5.25 A A-l A-l 6.12 __ 4 .50-5.90 4 .90-5.40 5.75 4 .80-5.40 5.70 A A Aa Aa Table 5B LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 May 1 through May 25, 1973 2 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) COUPON RATE MATURITY OFFERING YIELD MOODY'S RATING 3.90-4.85 Aaa A A Baa Aa A-l S T A T E A N D LOCAL C a l i f o r n i a , S t a t e of New J e r s e y Turnpike Auth. P i n e l l a s Co., Fla. D e t r o i t , Mich. M a s s a c h u s e t t s , S t a t e of Hawaii, S t a t e of C a l c a s i e u P a r i s h I n d . Dev. B d . , La. P o l . C a l c a s i e u P a r i s h I n d . Dev. Bd.J La. P o l . Tucson, A r i z . Tucson, A r i z . A l a s k a , S t a t e of P h i l a d e l p h i a , Pa. P h i l a d e l p h i a , Pa. Mass. Health & Ed. Fac. Auth. New O r l e a n s , La. D a l l a s , Texas P u e r t o Rico I n d . Dev. Co. P u e r t o Rico I n d . Dev. Co. New York S t . Urban Dev. Corp. Other F e d e r a l Home Loan Mtge. Corp. G.O. Rev. G.O. G.O. G.O. G.O. Rev. Rev. Rev. G.O. G.O. G.O. G.O. G.O. G.O. G.O. Rev. Rev. G.O. 25.0 210.0 13.0 17.5 10.4 75.0 2.4 18.6 2.6 14.1 27.0 35.0 18.2 10.4 18.0 21.0 31.8 3.2 200.0 Mtge backed bonds 400.0 1974-1996 2013 1974-2003 1974-1988 1974-2003 1976-1993 4. 64 5.76 5.30 5.31 4.75 4.81 4.00-5.04 4.10-5.40 4.00-5.25 4.15-5.05 4.25-4.90 5.70 4.10-4.50 4.00-5.10 4.45-5.70 4.25-5.90 4.25-5.90 4.00-5.25 4.00-5.40 3.90-5.20 1993 4.56 15.5 5.11 5.86 5.91 5.12 4.92 4.67 6.00 —- 1974-1992 1976-1998 1974-2003 1974-2003 1974-2003 1974-1997 1974-1993 1974-1991 1974-1991 . 2013 4.50-5.88 —— 6.05 1976 A A Baa-1 Baa - I Baa-1 A-l A-l Aa Baa Baa A 7.05 7.05 — NOTES: 1 Includes state and local security offerings of $10 million and over. 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. • • • • •• • • . • • - . .. H.16 9 Table 6A FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY As of May 25. 1973 TYPE ISSUER F l a . Pwr. Pacific Tel. Pacific Tel. F i r s t Perm. Corp Potomac E l e c t . Pwr. L o u i s i a n a Pwr. & L t . Investors Realty Trust *Income Mortgage & R e a l t y T r u s t Georgia Ptor. *Commonwealth Edison F l a . Pwr. C o n s o l i d a t e d N a t u r a l Gas Consumer Pwr. I l l i n o i s Pwr. I n s t r u m e n t Systems Corp. *Atlantic City E l e c t . *Alabama F i n a n c i a l Group, I n c . Duke Pwr. G e n ' l . T e l . of Wise. * C a r o l i n a Pwr. & L t . *Ohio Edison Mountain S t a t e s T e l . * P a c i f i c Pwr. & Lt Arkansas R?r. & L t . Appalachian Pwr. * P a c i f i c Gas & E l e c t . *Delmarva R»r. & L t . Michigan G e n e r a l *Duquesne L i g h t American Express Income Shares C i r c l e Income Shares I n c . M e r i d i an Income Sec. S-G S e c u r i t i e s I n c . P u b l i c S e r v i c e E l e c t . & Gas *Burlington Northern Inc. 1 s t Mtg Notes Debs Conv Debs Com S t k 1 s t Mtg Bonds Conv Debs 1st Mtg 1 s t Mtg Com S t k 1 s t Mtg Pref Stk 1st Mtg Sub Debs Bonds Debs Bonds 1 s t Mtg Pref Stk Com Stk Bonds Com S t k 1 s t Mtg 1st Mtg Bonds Bonds Bonds Bonds Com Stk Com Stk Com Stk Pref Stk Com Stk Pref S t k NOTES: * Included in table for first time. 1 Includes corporate and other security issues of $15 million and over. 1 AMOUNT (IN M I L L I O N S OF D O L L A R S ) 60 .0 100.0 200 .0 60 .0 65,.0 45 .0 15,.0 10,.0 115 .0 100,.0 50,.0 50,.0 75,.0 50..0 25..0 30..0 30.;0 100.,0 25.,0 50.,0 64.,5 250. 0 43. 8 40. 0 50. 0 150. 0 25. 0 25. 0 35.0 110. 0 37. 5 25.0 - 60.0 108. 0 60. 0 APPROXIMATE DATE O F O F F E R I N G May May May May June June June June June June June June June June June June June June June . June June June June June . June June June June 30 31 31 31 5 5 5 5 6 7 7 11 12 12 12 13 13 14 14 19 19 20 20 21 25 26 27 28 28 , T a b l e 6B FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY As of May 25, 1973 TYPE ISSUER 1 AMOUNT (IN M I L L I O N S OF DOLLARS) APPROXIMATE DATE OF OFFERING STATE & LOCAL Perm S t a t e P u b l i c Sch. Bldg. Auth. Houston, Texas A u s t i n , Texas Los Angeles Reg. A r p t s . C o r p . , Cal. P r i n c e G e o r g e ' s Co., Md. Pensacola, F l a . Lacygne, Kan. *Georgia Highway Auth. Los Angeles C a l i f . Dept. of Wtr. & Pwr: * L o u i s i a n a , S t a t e of *The New York S t . Hous. F i n . Agcy. S a l t River P r o j e c t Agr. Imp. & Pwr. Dist. C h a r l o t t e , N.C. G.O. Rev Rev Rev Pol. Con. Rev. Rev Rev Ren -Rev Rev G.O. G.O. Rev G.O. 18.6 30.0 17.5 25.5 25.0 12.5 30.0 19.0 47.0 40.0 168.8 75.0 22.0 May May May May May May May 24 31 31 5 6 12 16 June August 20 21 NOTES: / 1 Includes state and local government issues of $10 million and over. 2 Includes foreign government and International Bank for Reconstruction and Development issues and issues of Federally sponsored agencies. H.16 Table 7 STOCK PRICES AND VOLUME 3 N Y S E INDEX 1971 - High Low 57.76(4/18) 48.73(1/4) 1972 - High Low 1973 - High Low 1973 - A p r i l 6 DJ I N D U S T R I A L S ] | 2 TRADING VOLUME NYSE NASDAQ 950.82(4/28) 26.68(4/28) 112.66(12/31) 797.97(11/23) 22.72(1/4) 100.52(2/26) | AMEX | NASDAQ 22.1(2/12) 11.0(9/17) 6.7(2/5) 2.7(8/13) 65.14(12/11) 1036.27(12/11) 28.53(4/14) 133.28(4/21) 56.23(1/3) 889.30(1/3) 25.61(1/3) 114.88(1/7) 21.8(11/10) 11.2(9/8) 7.4(3/10) 2.6(9/8) 11.7(3/10) 6.5(9/10) 65.48(1/11) 54.22(5/21) 26.70(1/8) 136.18(1/12) 22.43(5/23) 100.76(5/21) 20.4(1/12) 12.4(4/6) 4.8(1/12) 2.5(5/11) 10.4(1/12) 5.5(5/11) 113.27 115.22 114.15 108.40 12.4 15.2 13.2 14.5 2.9 3.1 2.7 , 3.2 6.5 6.4 5.8 6.2 110.89 109.10 102.89 100.76 14.5 13.7 15.1 18.0 3.0 2.5 3.0 4.0 6.2 5.5 6.4 6.8 1051.70(1/11) 886.51(5/21) 20 27 931.07 959.36 963.20 922.17 24.06 24.18 24.07 23.57 4 11 18 25 58,77 57.43 54.96 56.96 953.87 927.98 895.17 930.84 23.67 23.53 22.81 22.76 ^ 4 AMEX 58.23 59.65 ^9.59 56.86 13 May 1 STOCK PRICES DATE - , 8.9(12/30) 5.1(11/26) NOTES: 1 Figures other than highs and lows are Fridays only. High* and lows are for the year and are not necessarily for Fridays. 2 ... Volume figures are weekly averages of daily figures (millions of shares). Trading is normally conducted for 5% hours per day and 5 days per week, or 27% hours per week. In recent years, however abbreviated trading to the extent, and over the time periods, shown below: From Through Hours/Day Days/Week Hours/Week January 3, 1969 July 7, 1969 January 2, 1970 July 3, 1969 December 31, 1969 May 1, 1970 4 4% 5 5 5 5 20 22* 25 3 12/31/65 = 50 4 Average dollar value of shares listed. H.16 12 Table 8 SECURITY CREDIT RE GULATED M A R G I N CREDIT E X T E N D E D BY END OF PERIOD B R O K E R S ON MARGIN STOCK 1 BROKERS O N 2 CONVERTIBLE BONDS 3 BANKS UNREGULATED4 NONMARGIN STOCK CREDIT AT BANKS OTHER SECURITY CREDIT AT BANKS 5 OUTSTANDING J une 6,620 7,010 7,200 7,510 July 7,660 Aug. Sept. Oct. Dec. 7,780 7,800 7,800 7,890 7,900 240 240 241. 244 248 246 248 250 249 254 1972 - J a n . Feb. Mar. 7,700 7,500 7,200 249 248 244 440 390 190 310 150 120 20 -16 1971 - Mar. Apr. May Nov. 951 1,158 967 1,150 1,141 1,294 1,278 994 955 979 1,032 1,008 943 902 865 1,644 1,274 1,772 1,800 1,871 1,875 1,871 1,896 1,285 1,298 1,255 1,351 1,296 1,528 865 867 1,940 1,954 879 1,917 1,484 1,508 1,566 1 16 27 39 24 53 -24 -65 -41 -37 -12 -8 -9 503 128 28 71 4 -4 25 -33 -16 18 -22 11 13 -43 96 45 132 44 14 -37 -44 24 58 1,296 C H A N G E IN O U T S T A N D I N G 1971 - Mar. Apr. May Dec. 90 10 1 3 4 -2 2 2 -1 5 - Jan. Feb. Mar. -200 -200 -300 -5 -1 -4 July Aug. Sept. Oct. Nov. 1972 —— 2 12 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 Governors 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 5 Includes loans to purchase or carry margin stock if these are unsecured or secured entirely by unrestricted collateral. H.16 Table 9 SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN M I L L I O N S OF D O L L A R S MUTUAL SAVINGS BANKS REGULAR D E P O S I T S DATE NET FLOW 1970 1971 1972 4,517 9,621 9,788 1972 - J a n . Feb. Mar. 855 931 1,507 1973 - J a n . Feb. Mar . E ' 766 551 1,102 1 ANNUAL 3 GROWTH RATE S A V I N G S & LOAN A S S O C I A T I O N S NET NEW MONEY 2 SHARE CAPITAL NET FLOW ANNUAL 3 GROWTH RATE NET NEW MONEY TOTAL 2 DEPOSITS NET NEW MONEY ANNUAL 3 GROWTH RATE NET FLOW NOT SEASONALLY ADJUSTED 6.8 13.5 12.0 - 936 5,678 5,397 10,965 28,230 32,902 8.1 19.3 19.5 716 809 773 3,266 2,818 4,287 595 . 402 280 3,278 1,905 3,731 - 2,706 2,246 2,164 16.2 13.3 12.7 3,486 3,007 3,066 14.5 12.3 12.5 4,026 1,834 2,430 23.3 10.4 13.7 4,834 2,299 3,009 19.4 9.1 11.8 5,285 20.653 23,884 15,482 37,851 42,690 E 3,117 2,700 2,532 4,121 3,749 5,794 — 3,117 1,795 1,658 4,044 2,456 4,833 7.7 17.5 17.0 6,221 26,331 29,281 :: . 3,833 3,509 3,305 3,712 2,197 1,938 - SEASONALLY ADJUSTED 1972 - O c t . Nov. Dec. 780 761 902 10.5 10.2 12.0 1973 - Jan:. Feb. Mar.2/ 808 465 579 10.6 6.1 7.5 - NOTES: 1 Regular deposits at mutual savings banks exclude items such as Christmas club and certain escrow accounts, which represent a very small part of total deposits. 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 growth rate for monthly data is the annualized monthly percentage increase in deposits. - J H Source: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. H.16 14 T a b l e 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 BKE> ASSOCIATIONS (N Y. S T A T E ) NET C H A N G E TOTAL MUTUAL ALL SAVINGS & LOAN S A V I N G S BKS ASSOCIATIONS (N Y. S T A T E ) ( B i l l i o n s of D o l l a r s i, S e a s o n a l l y A d j u s t e d ) r / 1971 - Dec. 16.6 13.1 3.6 .09 - .06 .15 1972 - J a n . Feb. March April May June July Aug. Sept. Oct. Nov. Dec . 18.0 19.1 19.7 20.1 20.6 20.7 21.0 21.8 23.6 24.3 24.9 14.1 15.0 15.4 15.7 16.2 16.3 16.5 17.3 18.1 18.7 19.4 20.0 3.9 4.1 4.3 4.4 4.4 4.4 4.5 4.5 4.8 4.9 4.9 .24 .67 .49 .42 .60 .53 .36 .83 .99 .73 .73 .11 .13 .05 -.07 .10 .07 .22 .10 4.9 .68 .11 .39 .38 .29 .55 .60 .26 .76 .77 .63 .69 .65 1973 - J a n . Feb. Mar. 25.9 26.5 26.2 20.8 21.5 . 21.2 5 .1 5.0 5 .0 .98 .59 .15 .69 .36 22.9 .81 .13 .28 .04 .03 .17 -.10 -.21 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. H.16 15 T a b l e 11 NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN M I L L I O N S O F DOLLARS PERIOD TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES INTERMEDIATE AND L O N G - T E R M ISSUES TOTAL FHLB June July Aug. Sept. Oct. Nov. Dec. -439 -696 -388 -483 +604 +335 +453 +942 -96 +563 -100 -451 -453 -136 +411 +200 +526 +849 +300 +500 1972 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. -259 +169 +176 +138 +129 +599 -367 +120 +624 -112 +628 +273 — — — +399 +248 -1 +299 +813 - -1 -1 +100 -47 +311 +475 -403 -2 -1 -200 -1 -1 -1 +200 1973 - J a n . Feb. Mar. +131 +452 +582 1971 - Mar. Apr. May ' +122 +312 +378 -450 -651 -452 -337 -39 -87 -28 +200 -250 FHLMC — FNMA +350 +200 -1 +201 +450 -13 +554 +649 +550 +500 • — —--- +300 — — — — FNMA SHORT-TERM DISCOUNT NOTES -339 -245 +65 -347 +193 +135 -73 +93 -396 +63 — — — — — — +100 +103 +337 -1 — -150 -1 +400 -259 -230 -72 +139 -170 -214 -366 +121 +524 -65 +317 -202 +6 +10 +379 +9 +140 +204 -- +251 -I —— +602 +250 — — - — +500 -1 +814 -25 76 +116 +51 < NOTES: Based on data from Federal Home Loan Bank Board (FHLBB), Federal National Mortgage Assoc. (FNMA) and Federal Home Loan Mortgage Corp. (FHLMC). Intermediate and long-term issues are those with an original maturity of one year or more, including Government National Mortgage Association mortgage backed bonds. H.16 Table 12 16 NET CHANGE IN MORTGAGE HOLDINGS IN MILLIONS O F DOLLARS PERIOD TOTAL INCLUDING FNMA-GNM# FINANCIAL INSTITUTIONS TOTAL COMMERCIAL BANKS MSB's S & Ls INSURANCE FNMA-GNMA COMPANIES Not S e a s o n a l l y Ad l u s t e d 1969 1970 1971 1972 1972 - J u l y Aug Sept Oct Nov Dec 1973 - J a n Feb Mar Apr May June July Aug 24,074 21,736 41,647 57,107 , 19,699 16,827 55,081 5,404 2,462 9,940 15,999 2,682 1,845 3,938 5,377 4,872 5,931 5,286 4,779 5,114 5,943 4,717 5,563 4,918 4,684 4,984 5,811 1,500 1,600 1,400 1,400 1,500 1,000 438 553 502 472 517 598 3,760 3,565 3,678 n .a. 900 900 1,200 458 331 568 3,744 39,259 9,561 10,172 24,160 31,982 2,052 2,348 1,221 1,723 4,375 4,909 2,388 2,026 2,758 2,926 2,673 2,712 3,101 79 97 90 139 255 1,112 164 368 137 95 130 132 2,045 2,428 3,303 162 19 n.a. 195 66 69 101 79 111 135 299 782 147 292 34 - 24 70 96 219 62 n.a. 228 112 124 3,313 S e a s o n a l l y Ad l u s t e d 1972 - J u l y Aug Sept Oct Nov Dec 1973 - J a n Feb Mar Apr May . 4,849 5,471 4,748 4,714 5,282 4,593 5,179 4,714 4,738 5,212 5,697 5,601 4,501 4,371 n.a. , 4,273 4,259 n.a. 1,451 1,477 1,155 1,393 1,524 1,164 472 515 537 484 513 525\ 2,678 3,108 2,911 2,72o 2,876 3,130 1,112 1,079 475 388 601 2,467 2,730 3,371 1,262 July Aug 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 8 9 p e r cent of the net increase estimated for all holders in 1 9 7 2 . 2 Beginning January 1972 data reflect activity in limited amount of conventional mortgages. H.16 17 NET INCREASE IN MORTGAGE DEBT OUTSTANDING' IN 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 A N N U A L R A T E S RESIDENTIAL QUARTER 1- t o 4 FAMILY MULTIFAMILY COMMERCIAL MULTFAMILY & COMMERCIAL 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 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 10.7 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 4.8 4.6 5.1 6.8 9.8 9.8 11.5 13.4 1971 - I II III IV 37.5 47.8 52.2 54.2 27.3 36.0 38.9 40.7 19.2 26.5 30.1 31.9 8.0 8.1 9.5 11.1 8.9 11.0 16.1 18.9 19.8 19.9 1972 62.4 64.9 65.2 68.4 45 .4 47.1 47.3 50.6 35.9 37.5 38.5 40.2 9.5 9,3 10.4 14.5 15.2 15 .2 15.4 23.9 24.8 24.0 25.8 80.9 59.7 - 48.5 11.2 18.1 29.2 I II III IV e/ 1973 - I- 6.6 9.4 8.8 8.8 6.4 9.5 9.2 6.0 10.1 6.5 7 .4 11.3 10.4 10.1 10.0 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. 2 May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. 3 Residential mortgage debt includes nonfarm only and is sum of 1 to 4 family and multifamily mortgage debt combined. H.16 T a b l e 14 PRIVATE HOUSING PERMITS, STARTS, COMPLETIONS, AND MOBILE HOME SHIPMENTS IN T H O U S A N D S OF UNITS, SEASONALLY A D J U S T E D A N N U A L RATES PERMITS PERIOD 1972 - J a n u a r y February March April May July August September October November December 1973 - J a n u a r y February March April TOTAL 1—FAMILY COMPLETIONS!/ STARTS 2 - O R MORE FAMILY TOTAL 2,204 2,056 2,007 1,991 1,955 2,121 2,108 2,237 2,265 2,216 2,139 2,377 1,098 959 954 963 923 989 1,013 1,031 975 1,086 961 947 1,106 1,097 1,053 1,028 1,032 1,132 1,095 1,206 1,290 1,130 1,178 1,430 2,439 2,540 2,313 2,204 2,318 2,315 2,244 2,424 2,426 2,446 2,395 • 2,369 2,218 2,191 2,071 1,793 1,057 1,068 989 895 1,161 1,123 1,082 898 2,497 2,456 2,248 2,103 1 —FAMILY 2 - O R MORE FAMILY 1,395 1,281 1,310 1,215 1,308 1,283 1,319 1,373 1,382 1,315 1,324 1,207 1,044 1,260 1,003 989 1,011 1,032 925 1,051 1,045 1,131 1,071 1,162 1,450 1,372 1,247 , 1,191 1,047 1,084 1,001 912 TOTAL 1/ 1 —FAMILY MOBILE 2 - O R MORE HOME FAMILY SHIPMENTS Data n o t y e t a v a i l a b l e . x 554 552 595 634 572 583 556 534 494 548 666 606 648 642 737 NOTES: Private building permits (for 13,000 areas with permit systems, excluding farm), starts and completions are Census Bureau data, with completions converted to a seasonally adjusted annual rate by the Federal Reserve. A dwelling unit is started when excavation begins. In the case of apartment buildings, all units are considered started at that time; however, all such units are considered completed when 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. H.16 T a b l e 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES CONVENTIONAL LOANS PRIMARY MARKET NEW H O M E S 1 PERIOD RATE (IN PER CENT) SPREAD (BASIS POINTS) SPREAD BETWEEN RETURNS ON H U D ( F H A ) INSURED L O A N S SECONDARY MARKET EXISTING HOMES NEW HOMES 1 1 RATE (IN PER CENT) SPREAD (BASIS POINTS) YIELD (IN PER CENT) SPREAD (BASIS POINTS) NEW A a a UTILITY AND HUD(FHA) BOND DISCOUNT NEW H O M E YIELD (PERCENTAGE M O R T G A G E S (IN PER CENT) POINTS) (BASIS POINTS) rnuvPNTinNAi 1971 - High Low 7.95 7.55 .52 .01 8.05 7.65 .62 .06 7.97 7.32 .31 •07 7.8 2.7 .28 .01 8.04 7.28 1972 - High Low 7.70 7.55 • 61 • 15 7.75 7.60 •66 -20 7 .57 7.45 •48 .05 4.7 3.7 .14 .06 7.45 7.09 1972 - J a n Feb Mar Apr May June July Aug . Sept Oct Nov Dec 7.60 7.60 7.55 7 .60 7.60 7.60 7.65 7.65 7.70 7.70 7.70 7.70 .39 .26 .31 .15 .22 .28 .27 .28 .30 .32 .61 .55 7.70 .7 . 65 7.60 7.65 7.70 7.70 7.70 7.70 7.75 7.75 7.75 7.75 .49 .31 .36 .20 .32 .38 • 32 .33 .35 .37 .66 .60 7.49 7.46 7.45 7.50 7.53 7.54 7.54 7.55 7.56 7.57 7.57 7.56 .28 .12 .21 .05 .15 .22 .16 .18 .16 .19 .48 .41 4.0 3.8 3.7 4.1 4.3 4.4 4.4 4.5 4.6 4.7 4.7 4.6 .11 .14 .10 .10 .07 .06 .11 .10 .14 ,13 .13 .14 7.21 7.34 7.24 7.45 7.38 7.32 7.38 7,37 7.40 7.38 ' 7.09 7 .15 1973 - J a n Feb Mar Apr 7.70 7.75 7 .80 7.90 .32 .35 .31 .42 7.75 7.80 7.85 7 .90 - 17 7.55 7.56 7.63 7.73 .17 .16 .14 .25 4.5 4.6 5.2 5.9 .15 .19 .17 .17 7 .38 7.40 7.49 7.48 : .40 .36 .42 NOTES: 1 Gross yield spread is average mortgage return 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. H.16 T a b l e 16 20 FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS CONVENTIONAL GOVERNMENT-UNDERWRITTEN D A T E OF AUCTION 1972 - O c t Nov. Dec . 1973 - J a n . Feb. Mar. Apr. May AMOUNT ( I N M I L L I O N S OF D O L L A R S ) AVERAGE YIELD OFFERED | ACCEPTED 10 16 30 271.2 186.4 224.9 162.7 7 .73 7 .74 6 13 27 78.7 60.8 49.2 36 .6 7 .72 7 .70 -- 4 11 26 2 8 22 5 6 19 21 5 6 19 21 ^ —— 42.4 66.3 7 .68 7.69 74.2 107.0 61.3 92.1 7 .69 7 .70 128.7 65.4 7 .71 82.2 108.7 -- I — 110.3 -- -- -- 71.6 7 .73 -- -- 170.8 107.7 7 .75 , -- -- -- AMOUNT (IN M I L L I O N S O F D O L L A R S ) OFFERED | ACCEPTED 42.2 37.2 AVERAGE j YIELD 7.90 -- —— __ -- -- — 75.0 68.0 7.90 -- __ -- -- -- 36.4 30.9 7.87 -- -- -- -- -- 39.3 25.5 7.84 -- -- -- -- -- 62.9 7.89 100.9 —- -- 66.0 49.6 60.3 7.92 __ __ 44.3 7.95 297 .3 168.7 7. 81 -- -- __ -- -- •- 86.8 56.4 8.02 111.9 81.6 8.11 2 3 16 17 30 234.6 145.9 -- -- 261.2 185.9 14 258.3 187.7 216.6 190.7 7.86 - - 7 . 89 -- -- 7 . 92 111.0 128.9 88.4 88.2 8.17 8.23 7 . 96 117.6 84.4 8.31 - - 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 ^-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. H.16
@FedFRASER