Full text of H.16 Capital Market Developments : May 30, 1972
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Gj, L.5.8 ilvF:|J|^fpECONTROLLED AFTER SIX MONTHS Confidential (F.R.) MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. ^972 INDEX Developments in the Corporate and Municipal Bond Markets Capital Market Y i e l d s Capital Market Volume Stock Market Mortgage Market SYMBOLS: estimate Preliminary Revised Not available TABLE 1: Yields, Volume and Reception YIELDS MOODY'S SEASONED NEW ISSUE 1 Aaa WEEK ENDING: 972 - Apr. May 7 14 21 28 7.33 7.42 7.42 7.32 7.25 7.28 7.32 7.36 422 469 412 334 78 87 99 99 n.a. n.a. n.a. n.a. 5 12 19 7.20 7.28 7.34 7.32 601 70 79 26 7.25 7.19 7.30 7.27 n.a. n.a. n. a. n.a. 2 n.a. n.a. June MOODY'S SEASONED Aaa WEEK ENDING: 972 - Apr. May June . CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS YIELDS BOND BUYER SEASONED 20 BOND INDEX 344f 215 348 57 97. 300e MUNICIPAL BOND MARKET VOLUME 2 GROSS OFFERINGS PER CENT SOLD BY END OF WEEK BONDS SCHEDULED WITHIN 28 DAYS 7 14 21 28 5.20 5.25 5.20 5.00 5.49 5.54 5.50 5.20 378 676 569 387 76 92 90 88 1,375 1,015 1,310 1,342 5 12 19 26 5.10 5.20 5.15 4.90 5.35 5.39 5.29 5.19 478 320 350 618 73 87 1,246 1,470 76 81 1,134 954 214 n.a. 2 n.a. n.a. Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial and convertible issues, offerings of natural gas pipeline and foreign companies, and bonds guaranteed by the Federal Government.) Millions of dollars unless otherwise indicated. Note: Sou footnotes to Table 3 TABLE 2: Details on Inventories DATE OFFERED i 5/15 5/17 5/17 5/18 5/18 5/18 5/22 5/22 5/25 5/25 5/25 AMOUNT (MIL. S) 1 30. 0 25. 0 12. 0 24. 0 50. 0 26. 0 50.,0 50.,0 20.,0 40,.0 25,.0 31 OFFERED CORPORATE BONDS IN SYNDICATE END OF LATEST W E E K ORIGINAL RATING AND ISSUER COUPON YIELD C A L L PROTECTION C e n t r a l 111 PS Utah P & L Pa P w r Nat Fuel Gas Avco F i n Svcs Metropolitan Edison C h e s . P o t . Va. C h e s . P o t . Va. Kewanee Oil Fed P a p e r B d . Centran Bancshs 7 1/2 7 1/2 7 5/8 7 1/2 7 7/8 7 7/8 7 i/4 6 1/2 7 5/8 7 .85 7 .85 7.43 7.50 7.48 7.51 7.98 7.75 7.34 6.50 7.63 7.85 7.85 Aa A Aa A NR A Aa Aa A Baa NR 5 5 5 5 10 5 5 5 10 10 10 E S T I M A T E D PROPORTION SOLD 40% 80% 50% 25% 98% 50% 40% 90% 90% 90% 75% yrs yrs yrs yrs yrs yrs ' yrs yrs yrs yrs yrs CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST W E E K ORIGINAL INCREASE RATING A N D ESTIMATED PROISSUER COUPON IN YIELD C A L L PROT. PORTION RELEASED YIELD AMOUNT NONE INVENTORIES MUNICIPALS BLUE LIST | IN SYNDICATE 621 72 DATE 1972 - Apr. 28 May 5 12 19 26 735 669 687 99 122 144 776 171 1 CORPORATES IN SYNDICATE 10 162 127r 94 108 protection. All figures in millions of dollars. BLue List is daily average for week ended F r i d a y , e x c e p t which is daily average of three days ended Wednesday. All other figures are as of Fridav. for latest week TABLE 3: High Grade Bond Yields 1970 - High Low NEW CORPORATE Aaa 1 9.30 (6/19) 7.68 (12/18) 1971 - High Low 1972 - High Low DATE MOODY'S SEASONED CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED • MUNICIPALS 4 8.60 (7/3) 7.48 (12/21) 7.55 (5/29) 6.17 (12/18) 7.12 (5/29) 5.33 (12/11) 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) 7.42 (4/21) 6.86 (1/14) 7.36 (4/28) 7.16 (1/21) 6.19 (4/14) 5.96 (1/14) 5.54 (4/13) 4.99 (1/13) Apr. 14 21 28 7.42 7.42 7.32 7.28 7.32 7.36 6.19 6.19 6.15 5.54 5.50 5.20 May 7.20 7.28 7.25 7.19 7.34 7.32 7.30 7.27 6.13 6.13 6.06 5.99 5.35 5.39 5.29 5.19 1 5 12 19 26 • New corporate issues, with,call protection, adjusted (as described in footnote 1 of Table 1) to a Aaa basis. 2 Weekly average of daily figures. Average term of bonds included is 22-24 years. 3 Weekly average of daily figures. 4 Thursday figures. The average rating of the 20 bonds used in this index falls midway between the four top groups as classified by Moody's Investors Service. Note--Highs and lows are for individual series and may be on different dates for different series. 6 T A B L E 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS CORPORATE PERIOD 1972 1971 1 STATE AND LOCAL 1970 January February March 3 ,205 3 ,369 3 ,229 3,115 3,000 6,075q 2,636 1,802 3,539 April May June 3 05 Oe 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 3,777 4,182 3,980 12,190 11,688 10,447 10,764 7,977 10,468 8,560 11,939 23,844 34,325 45,089 18,445 27,005 38,944 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st h a l f T h r e e quarters Year 9, 803 J.972 i | 1 , i 1971 1970 1,762 1,953 2,195 2,732 1,851 2,258 1,340 1,214 1,555 2,086 1,891 2,167 2,013 1,647 996 1,085 1,989 1,903 2,098 1,348 1,359 1,758 1,728 2,264 2,068 1,924 1,748 2,190 6,841 6,081 5,990 6,060 4,109 3,728 4,465 5,862 12,912 18,902 24,962 7,837 12,302 18,164 i | | 5,910e S e c u r i t i e s and Exchange C o m m i s s i o n estimates of gross p r o c e e d s . I n v e s t m e n t B a n k e r s A s s o c i a t i o n of A m e r i c a e s t i m a t e s of p r i n c i p a l a m o u n t s . 2 T A B L E 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH 1 MFG. PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS1 2,910 2,651 3,041 2,261 896 2.,263 ,053 1, 1,,476 4,753 3,331 4,164 4,541 561 • 2,,422 1,462 529 1,661 116 47 52 384 255 712 1 ;,135 588 1 ,206 1,267 588 1,055 273 405 218 1,367 1,489 1,897 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 1,269 1,201 59 62 12 222 395 150 662 811 980 933 1,217 891 432 269 352 1,360 1,408 1,450 533 392 604 1,767 834 59 3,205 195 - Jan. 988 529i 412 3,369 1,917 1,041 83 12 Feb. 604 740 976 3 3,229 1,677 577 233 Mar. 1,225 5751 550 1.600 900 3.050 70 Apr.e/ O t h e r issuers are e x t r a c t i v e , railroad and o t h e r t r a n s p o r t a t i o n , real e s t a t e and finance, and c o m m e r c i a l and other. Source: S e c u r i t i e s and E x c h a n g e C o m m i s s i o n . Quarterly supplements are available. 752 498 227 180 1,529 1,354 1,658 1,070 11,688 10,447 10,764 9,805 6,546 4,725 5,135 5,361 1, 7 5 8 1, 641 2, 4 3 9 1 593 3,384 4,079 3,193 2,851 215 114 133 74 6,074 4,136 664 1,274 43 Apr. May June 4,042 3,271 4,375 2,116 2,148 2,282 507 491 760 1,419 633 1,332 July Aug. Sept. 4,147 2,532 3,768 1,331 1,428 1,966 619 416 606 Oct. Nov. Dec. 3,387 3,704 3,673 1,942 2,003 1,190 723 433 1 ,283 I I I IV - I 1971 - M a r . r / 1972 G R O S S P R O C E E D S BY T Y P E O F ISSUER 3, 130 2,,202 2,,453 1,,525 197T - i f 1972 TOTAL GROSS P R O C E E D S BY T Y P E OF I S S U E COMMON AND BONDS MEMO: PRIVATELY PFD. I S S U E S INCLUDED PUBLICLY PLACED STOCK FOREIGN 1 CONVERTIBLE OFFERED 1,351 652 767 511 T A B L E b: L a r g e Lonci term P u b l i c S e c u r i t y I s s u e s for New C a p i t a l ( c o n t i m n d) (Other than U.S. T r e a s u r y ) ' ISSUER Corporate So. Calif Edison Hospitality Motor Inns, Inc Punta Gorda Isles, Inc First Commercial Banks Southwestern Bell Tel Southwestern Bell Tel S u n Oil Co Security Mtg Inv. First Pa Banking & Tr Co G e n 1 1 Elect Credit Corp Security M t g Inv Procter & Gamble Co Mercury Gen'l Corp Kansas City Pwr & Lt BancOhio Corp Consolidated Nat Gas Fruehauf Finance Co Bait Gas & Elect Fruehauf Finance Co Gen'l Tel of the NW American Medicorp, Inc Eastern Airlines Inc Centennial Corp Fleetwood Enterprises, Inc Rite Aid Corp Columbus & So Ohio Elect Co Utah Pwr & Lt Pacific Lighting Central 111 Pub Svc G U l f Pwr , Utah Pwr & Lt Pa Pwr Barnett Banks of Fla Inc National Fuel Gas Metropolitan Edison Avco Financial Corp TYPE 2 AMOUNT (MILLIONS OF DOLLARS) Pref 75.0 Cm St 24.8 Conv deb 15.0 Deb 25.0 Debs 175.0 Notes 75.0 Debs 100.0 Debs 50.0 Debs 30.0 Bonds 75.0 Debw/W Arts) 20.0 Debs 100.0 Cm St 15.6 Debs 30.0 Debs 25.0 Debs 50.0 Notes 25.0 Cm St 43.5 Debs 25.0 1st mtg 20.0 Conv debs 30.0 Cm st 54.3 Cm st 32.9 Cm st 20.6 Cm st 17.7 Cm st 17.0 Cm st 23.4 Pref 30.0 Debs 30.0 Bonds 22.0 Bonds 25.0 1st mtg 12.0 20.0 Debs Debs 23.5 MATURITY — 41992 2002 2012 1979 2232 1982 1979 1977 1982 2002 May 1, thru May 23 1972 COUPON I RATE OR MOODY'! ; on-CHNET INTERRATING ILL EST COST 1 YIELD 7 5/8 —— 7,625 Aa -i — -- 6.00 7 3/4 7 3/8 6 1/2 7 1/8 7 1/4 6 7/8 6 5/8 6.00 7.00 6.00 7.79 7.40 6.60 7.21 7.25 6.88 6.625 6.00 7.08 - *- —— —— __ 2002 1979 7.52 7.09 7.55 7.00 Aa 1979 . 7 5/8 7.00 7 5/8 7.00 -- —— —— 1994 2002 1997 7.60 7 7/8 5.00 Aaa Aaa Aa __ —— __ Aaa Aa __ —* 7.60 7.85 5.00 A -—— -- -- -- —— —- —— —— —— __ -- -- __ -- __ —— 1st mtg 26.0 2002 2002 2002 2002 1992 1997 2002 Bonds 50.0 1992 . __ __ 7 1/2 7 1/2 7 1/2 7 5/8 7 3/4 7.50 7 7/8 7.43 7.50 7.50 7.48 7.75 7.50 7.75 Aa Aa A Aa 7 7/8 7.98 -- A A TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 May I, thru May ISSUER Corporate Pacific Pwr & Lt. Co. First Va. Mtge & Re. Inv. Tr. Delmarva Pwr & Lt. Co. C&P Tele Co of Va. C&P Tele Co of Va ulf Republic Fin Corp Median Mtge Investors Heublein Inc U.S. Industries Inc. Kansas City Pwr & Lt. Co Centran Bancshares Kewanee Oil Co. Federal Paper Board Co., Inc. TYPE 2 AMOUNT (MILLIONS OF DOLLARS) Com stk (rts) 36.4 Bene Int 25.0 Com stk (rts)16.2 Debs 50.0 tiotes 50.0 Com stk 19.0 Conv debs 10.0 2onv debs 100.0 Debs 50.0 :om stk 15.3 Debs 25.0 Bonds 20.0 Debs 40.0 MATURITY 2012 1978 -- 1992 1997 1997 1997 1997 1997 COUPON RATE OR NET INTEREST COST 7 1/4 6 1/2 OFFERING YIELD 1972 MOODY 1 S RATING 7.34 6.50 Aaa Aaa 7.50 4.50. 7.75 Ba A 7.85 7.63 7.85 A Baa —— 7 1 2 4..50 7 3/4 7,.85 • 7,.63 7..85 TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury)' May 1, thru May 23, • 1 ISSUER State & Local MaComb Co, Mich MaComb Pennsylvania, State of Pennsylvania, State of Alabama State Dock Dept. Battery Park City Auth Battery Park City Auth Texas Tech University, Texas Penna State Pub School Bldg Auth, Harrisburg Pub State Pub School Bj.dg Auth, Harrisburg Wayne Co., Ga. Indust Greater Anchorage Area Borough, Alaska Norfolk, Va. Milwaukee Port of Portland Oregon Airport Port of Portland, Ore Florida Florida Monroe, Co., N.Y. Wayne Co Ga. iivi" Dev Auth Columbus, Ohio King Co, Wash Detroit, Mich New Jersey Hsg Finance Agency Dallas-Ft. Worth Reg Auth, Tex. Alaska, State of Puerto Rico Bldg Auth Puerto Rico Bldg Auth TYPE 2 AMOUNT (MILLIONS OF DOLLARS) G.O. G.O. G.O. G.O. Rev. Rev. Rev. G.O. 6.0 10.4 50.0 50.0 15.0 45.2 154.8 12.5 Rev. MATURITY COUPON RATE OR NET INTEREST COST | J ol-TER II. r. YIELD 1972 MOODY'S RATING 1972-2001 1972-2001 1974-2001 1999 1973-1992 1980-1995 2014 1974-2001 5.49 3.82-5.15 4.99 5.11 6.35 6.35 5.36 2. 90-5.70 2. 70-5.25 3. 00-5.60 3. 00-5.55 3. 00-5.70 4. 80-6.00 6. 38 3. 20-5.60 24.0 1974 5.59 2.70-5.80 —— Rev. Rev. 26.3 3.8 1974-2011 1973-1982 5.59 3.,30-5.80 3. 75-5.35 Baa Rev. G.O. G.O. Rev. Rev. G.O. G.O. Rev. 13.0 15.0. 12.3 8.0 17.0 34.8 19.2 15.n 1974-1992 5.87 1973-1992 4.80 1973-1992 4.77 1974-199-1 6.20 2006 6.20 2008 • 5.44 1976-1997 5.44 — 1°73-2002 3.,90-6.00 2.,90-5.45 2.,90-5.80 3., 60-6.00 6.,20 5.,50 3,.60-5.30 2,.80-5.35 Baa Aa Aaa Baa Baa Aa A Aaa Rev G.O. G.O. Rev. Rev. Rev. G.O. Rev. Rev. 6'. 5 16.5 17.3 13.7 59 0 37.5 30.0 14.5 12.0 1992 1974-2003 1974-2012 1973-1987 1973-2021 1978-2002 1973-1997 2002 1974-1992 6 . nn 3 .10-5.00 3 .40-5.70 3 .30-6.00 3 .00-5.an 4.50-6.35 3.00-5.40 5 ,85 3 .25-5.50 —W -- 5.01 5.50 5.68 5. 75 6.22 5.16 — A A A-1 Aa A A A w- Aa A Aa Aa Baa-l A TABLE 6: Large Long term Public Security Issues for New Capital (continued) (Other than U.S . Treasury)1 May 1, thru May 23, ISSUER TYPE 2 State and Local Kansas Albany Co, N.Y. Ann Arundel Co., Md. California, State of Washington, State of Boston, Massachusetts Dallas, Tex, New York State Housing Beaver Co, Pa Beaver Co, Pa Hawaii Co, Hawaii Lancaster* Pa Lancaster, Pa. Other Federal Home Loan Mortgage Corp Federal Home Loan Mortgage Corp SBA ' Rev G.O. G. 0. G.O. Rev. G.O. G.O. G.O. Rev. Rev G.O. Rev Rev. Bonds Bonds Debs AMOUNT (MILLIONS OF DOLLARS) 40.0 10.0 15.0 94.9 40.0 45.0 35.0 175.0 4.5 13.0 10.0 3.9 17.1 350.0 150.0 38.6 MATURITY COUPON | RATE OR itlTKRi;.( NET INTER- ' EST COST j| VILLI) 1973-2001 1973-1992 1973-2002 1973-1992 1973-1997 1973-1992 1973-1992 1973-2002 1974-1982 1992 1975-1992 1980-1992 2012 4.99 5.09 4.84 4.48 5.07 5.30 4.54 5.90 1977 1997 1982 6.15 7.15 6.90 6.80 6.80 4.85 6.03 6.03 MOODY'S RATING 2.80-5.20 2.85-5.40 2.85-5.65 2.80-5.20 2.80-5.65 3.20-5.75 2.75-5.25 3.00-6.04 4.50-6.00 6.75 3.40-5.70 4.60-5.75 6.15 7.15 6.85 Rights offering. Includes corporate and other security offerings of $15 million antl over; t State and local security offerings of $10 million and over. In case of State and local government securities, G.O. denotes g o m r a l obligation; Rev.-lit., revenue obligations secured only by income from public utilities; Rev.-Q.-lit., 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. Includes foreign government and International Bank for Reconstruction and Development issues and non-quaranteed issues by Federal Agencies. A A A Aa A »Baa Aa A 1972 12 T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 Afi flf M a y 23, 197? ISSUER Corporates — V a . E l e c t & P w r Corp Va. E l e c t & P w r Corp H a n o v e r Sq. R e a l t y I n v e s t o r s C a t e r p i l l e r T r a c t o r -Co. Fla Pwr Fla Pwr • W i l s o n Certified F o o d s Colorado Interstate Gas Wise-Mich Pipeline Consumer Pwr N a t u r a l G a s P i p e l i n e Co. I o w a Pub Svc Hartford E l e c t L i g h t Columbus & So Ohio Elect New Jersey Bell Tele -West P e n n P w r P u b l i c Svc of N e w H a m p s h i r e P u b l i c Svc of N e w H a m p s h i r e Pullman Transport Leasing Philadelphia Elect Duquesne Light Co Pa. E l e c t Fla Pwr & Lt. P o r t l a n d G e n '1 E l e c t Columbia Gas System C o l u m b i a G a s System Consumer Pwr P u b l i c Svc E l e c t P u b l i c Svc of N e w M e x . Louisville Gas & Elect P i t t s t o n Co. Georgia Pwr Western Mass Elect Baltimore Gas & Elect C e n t r a l Soya B o s t o n Co. M t g e Inv. M e d i c a l M t g e Inv. . Fidelco Growth Investments I n s t i t u t i o n a l I n v e s t o r s Tr. P e n n z o i l L a , & Tex. O f f s h o r e M o b i l e Oil C o r p TYPE AMOUNT (MILLIONS OF DOLLARS) 1st m t g e 100.0 C o m stk (rts) 45.0 C o n v debs 25.0 Debs 100.0 30.0 P r e f stk. Bonds 50.0 Debs 25.0 Bonds 35.0 Bonds 50.0 Bonds 70.0 Del a 40.0 Bonds 17.0 35.0 Bonds 25.0 1st m t g e Bonds 125.0 35.0 Bonds Bonds 20.0 P r e f stk 15.0 20.0 Eq tr. 100.0 Bonds 35.0 1st m t g e 25.0 P r e f stk. Bonds 50.0 Pref stk 30.0 Debs 60.0 40.0 C o m stk 70.0 P r e f stk Com stk(rts) 100.0 Bonds 20.0 Bonds 25.0 65.0 Debs 100.0 Bonds 30.0 1st m t g e Bonds 40.0 Debs 30.0 Conv debs 24.0 Debs 50.0 Conv debs 25.0 Conv debs 30.0 Conv debs 130.0 Debs 300.0 APPROXIMATE DATE OF OFFERING May May May June June June June June June June June June June June June June June June June . June a June June June June June June June June June June June June June June June June INDEF INDEF INDEF INDEF INDEF 31 31 31 1 1 1 1 1 5 6 7 7 8 8 13 14 15 15 15 15 19 19 20. 20 21 21 21 21 22 26 27 27 28 29 13 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)1 (Continued) ISSUER State and Local Ohio University Los Angeles, Gal. Hampton Rds Sanit, Dist. Va. Phoenix, Ariz. Cleveland City S/D Ohio Gainesville, Fla. Georgia-Highway Auth HUD Cincinnati Los Angeles DWAP Illinois Housing Dev. Auth. Port of Tacoma, Wash Seattle Wash Universities of State of Tex. Penna New York Job Dev. Auth Bergen Co. N.J. Montgomery Co. Springfield, M o Oklahoma City M i n Imp. Auth, Okla. Connecticut Hillsborough Co. Ind. Dev. Autt Fla. Milwaukee Co, Wis. King Co*. Wash Sacramento MUD, Cal TYPE Rev. G.O. Rev. Rev. G.O. Rev. Rev. Bonds G.O. G.O. Rev. G.O. G.O. G.O. Rev. G.O. G.O. G.O. Rev. AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING 24.7 40.0 12.0 14.5 20.0 18.0 25.0 213.1 9.8 40.0 15.1 15.1 10.5 12.0 50.0 15.0 10.2 21.0 30.0 May May May June June June June June June June June June June June June June June June June 8 8 12 12 13 13 14 14 14 Rev-Re f. G.O. 9.9 90.0 June June 14 15 G.O. G.O. G.O. G.O. 27.0 18.9 30.0 50.0 June June June June 19 20 20 21 31 31 1 7 7 7 * - Included in table for first time. ' — — — — — — — — — — — — 1 Includes corporate and other issues of S15 million and over; State and local Government issues of $10 million and over. 2 Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. Table 8 STOCK PRICES AND VOLUME STOCK PRICES1* TRADING VOLUME 2 ' DATE NYSE INDEX 3 - D J . INDUSTRIALS AMEX < AMEX NYSE 1970 - High 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 (8/1/,) 1971 - High 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 - High Low 56.23 (1/3) 889.30 (1/3) 971.25 (5/26) 28.53 (4/14) 25.61 (1/3) 21.2 (3/24) 14.0 (3/31) 7.4 (3/10) 4.0 (5/5) 7 14 21 28 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 5 12 19 26 59.30 59.19 60.54 61.38 941.23 941.83 961.54 971.25 27.53 27.48 27.86 27.94 14.4 14.4 15.6 16.5 4.0 4.1 4.4 4.4 1972 - Apr. May 61.38 (5/26) 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, 19(9 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 V • is T A B L E 9: Security Credit END OF PERI01 CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 ( BANKS - | TOTAL CUSTOMERS 1 NET DEBIT BALANCES NET CREDIT C U S T O M E R S ' N E T E X T E N D E D BY FREE CREDIT BROKERS AND DEALERS 3 BALANCES Outstanding 4,300 4,530 4,620 4,720 4,790 4,850 4,930 4,950 4,910 5,400 2,360 ' 2,340 2,340 2,390 2,420 2,430 2,430 2,410 2,400. 2,440 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) 2,798 2,660 2,550 2,440 2,210 2,200 2,100 2,160 2,170 2,220 1972- Jan. Feb. 5,700 6,180 2,490 2,510 8,190 , 8,690 (4) (4) 2,488 2,542 Mar. 6,620 2,520 9,140 210 230 90 100 70 60 80 20 -40 490 30 -20 240 210 90 150 100 70 80 -20 -10 40 -- -- -50 530 -- 300 480 440 50 20 10 • 350 500 450 1971 Mar. Apr. May j June July Aug. Sept. Oct. Nov. Dec. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1972 1 2 3 4 5 - Jan. Feb. Mar. 50 30 10 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) ~ 2,512 (4) 55 -138 -110 110 230 -10 100 60 10 50 -- — — —— -• ——— • - —— 268 54 -30 —— (4) (4) —— M a r g i n d e b t , as r e p o r t e d by the N e w Y o r k S t o c k E x c h a n g e . A l t h o u g h m a r g i n debt u n t i l M a r c h 1968 included loans secured by U . S . g o v e r n m e n t s , the a m o u n t of such loans i n c l u d e d is t h o u g h t to h a v e b e e p small. " B a n k loans to o t h e r s than b r o k e r s and d e a l e r s for p u r c h a s i n g or c a r r y i n g secur i t i e s o t h e r than U . S . g o v e r n m e n t s T h e d i f f e r e n c e b e t w e e n c u s t o m e r s ' net d e b i t b a l a n c e s and customers' net free credit b a l a n c e s , this figure r e p r e s e n t s t h e n e t c r e d i t extended by b r o k e r s and d e a l e r s to the n o n f i n a n c i a l p u b l i c . • NOTE: W i t h the e x c e p t i o n of b a n k loan d a t a , figures are supplied by the N e w Y o r k S t o c k E x c h a n g e and a r e end of m o n t h d a t a . B a n k loans a r e for w e e k l y r e p o r t i n g large 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 loans for r e g u l a t e d s e c u r i t i e s ; bank data i n c l u d e s loans for the p u r p o s e of p u r c h a s i n g or 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. C h a n g e s in s e r i e s . - - •-~ TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS REGULAR DEPOSITS 3 NET NEW ANNUAL MONEY 2 GROWTH NET 1 RATE FLOW SAVINGS ,5c LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL NET MONEY2 GROWTH 1 FLOW RATE TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW | NET NEW MONEY 2 Not Seasonally Adjusted 1969 1970 1971 2,549 4,517 9,623 1971 - February March April 906 1,604 801 — 1972 - February ,£/ March £/ April e/ 931 1,507 450 —— 4.0 6.8 13.5 — — — -- -763 936 5,678 4,068 10,965 28,244 811 955 651 2,444 4,108 2,211 809 773 280 2,818 4,299 1,800 3.1 8.1 19.4 -—— -- —— -- -1,003 5,285 20,652 6,617 15,482 37,867 2,340 2,627 2,092 3,350 5,712 3,012 2,684 2,552 n.a. 3,749 5,806 2,250 3.4 7.7 17.5 __ -- -1,766 6,231 26,330 3,151 3,582 2,743 3,493 3,325 — Seasonally Adjusted 1971 - October November December 599 659 836 9.1 10.0 12.5 -- 1972 - January February March g/ April e/ 948 861 1,089 806 14.1 12.6 15.8 11.5 —— --- — -- 2,071 1,710 2,031 14.8 12.1 14.2 4,1182,955 3,103 2,730 28.4 19.9 20.6 17.8 «• * — -- •> ~ 2,670 2,369 2,867 13.0 11.4 13.7 5,066 3,816 4,192 3,536 23.9 17.6 19.1 15.8 "" 1 2 3 Annual growth rate for monthly data is the annualized monthly percentage increase in deposits. Net New Money is new deposits net of: both withdrawals and interest. Data for SM-s are for insured associations only, which represent 967. of industry total resources. Regular deposits at mutual savings banks exclude items such as Christmas club and certain escrow accounts, which represent a very small part of total deposits. SOURCE: National Association of Mutual Savings Hanks and Federal Home Loan Bank Hoard. -- T A B L E 11: Mortgage Commitments at Selected Thrift Institutions OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS SAVINGS & BANKS LOAN (N.Y. STATE) ASSOCIATIONS TOTAL 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars, Seasonally Adjusted) 12.6 13.7 14.5 15.9 16.2 16.3 10.1 11.0 11.6 12.8 13.1 13.2 2.5 1.28 1.11 2.7 3.0 1.15 .90 .56 3.1 3.1 16.4 16.3 13.2 3.1 3.2 16.6 16.6 13.1 3.3 13.2 3.4 3.6 13.1 17.0 18.3 \l:i 4.1 19.5 15.2 4.3 .90 1.31 .30 .12 .08 .02 .20 1.26 .29 .14 .17 .25 .34 .05 .01 .01 -.07 .14 -.05 .07 .08 .09 -.06 .30 1.34 1.19 .97 .12 .15 .22 Based on data from Federal Home Loan Bank Board and Savings Banks Associations of New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. New changes are derived directly from unrounded outstandings levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. T A B L E 12: DATE 1968r 1969r 1970r 1971r. TOTAL INCLUDING FNMA-GNMA TOTAL Net Change in Mortgage Holdings FINANCIAL INSTITUTIONS LIFE MUTUAL SAVINGS & 1 INSURANCE SAVINGS COMMERCIAL LOAN BANKS BANKS ASSOC. | COMPANIES Not Seasonally Adius ted 2,508 4,375 2,052 2,348 4,909 3,938 1,221 2,388 596 2 ,338 693 289 1 ,453 1., 7 7 6 2,, 5 5 2 -79 -61 179 237 21,273 24,074 21,736 19,699 16,827 6,677 5,404 2,462 2,787 2,682 1,845 41,647 39,259 9,940 700 1971 - Dec. 4,616 4,327 1972 - Jan. Feb, Mar. 2,427 2,248 600 274 2,711 2,424 500 1,000 259 430 2,459 F::MA-GNMA 9 ,350 9 ,561 10 , 1 7 2 24 ,160 23,781 n.a. 1 83 Seasonally Adlusted 1971 1972 1 - - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 2,033 2,043 2,184 2,219 394 475 200 217 3,005 3,057 2,983 3,113 690 685 401 293 3,300 4,136 3,260 3,935 864 1,219 318 386 4,186 4,168 3,924 977 901 902 884 374 3,657 3,647 3,878 3,656 3,458 3,267 3,345 4,325 4,083 3,023 3,215 2,874 2,965 752 826 788 654 1,061 1., 3 4 8 1,, 4 2 6 1,, 8 0 1 2,, 0 8 2 2,, 0 3 6 101 101 -10 -35 91 53 22 -56 40 42 201 308 512 466 390 302 2 ,,309 21 2 ,,455 2 ,,252 2 ,,122 72 130 128 465 1, 9 7 7 2 ,,058 522 2 , 357 77 77 378 272 296 1,, 8 1 3 2 ,, 0 4 2 2 ,, 5 9 2 -27 1 149 250 n. a. 111 400 306 329 486 242 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 86 per cent of the net increase estimated for all holders in 1971. 19 TABLE 13: Net Increases in Mortgage Debt Outstanding 1 Billions of dollars, SAAR TOTAL RESIDENTIAL 3 1- to 4FAMILY - 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 - I II III IV 28.1 26.4 25.8 29.4 19.4 18.2 17.4 20.2 - I II III IV 31.8 29.1 26.2 24.9 - I II III IV- 20.6 22.9 29.1 31.3 - I II- 37.1 47.8 53.6 53.4 56.3 QUARTER nir Ifr - Ie MULTIFAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 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 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 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 . 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 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, 19.1 19.9 19.5 2.2 2.3 2*3 2.5 42.6 32.4 10.1 11.6 21.7 2.1 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 somewnat 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. J T A B L E 14: FNMA Weekly "Auction" Results IMPLICIT Y I E L D 2 ( p e r c e n t ) C O M M I T M E N T S IN $ M I L L I O N S | ACCEPTED . WEEK ENDED Jan. Feb. Mar. Apr. May 6MONTH 11 1 -YEAR & OVER TOTAL OFFERED TOTAL 4MONTHj 10 24 136.9 103.6 7%.9 54 . 9 72.9 54.9 7 21 88.7 68.6 63.9 44.8 63.9 44.8 — 6 20 86.9 202.9 50.6 86.2 50.6 86.2 —— 3 17 258.8 347.4 178.5 176.3 178.5 176.3 -- 1 15 364.9 266.3 336.4 188.2 336.4 188.2 —— —— -- " — — -- 4MONTH 6MONTH 1-YEAR & OVER 7.61 7.61 -- —— -- -- 7.61 7.61 —— — -- -- 7.56 7.54 —— —— -- -- 7.56 7.60 7.63 7.64 ---- -- NOTE; U n d e r the FNMA a u c t i o n s y s t e m , approved 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 bid for FNMA forward p u r c h a s e c o m m i t m e n t s . 1. 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 after a l l o w a n c e for c o m m i t m e n t fee and required p u r c h a s e and h o l d i n g of FNMA s t o c k , assuming p r e p a y m e n t of 15 y e a r s for 3 0 - y e a r G o v e r n m e n t - u n d e r w r i t t e n m o r t g a g e s . Yields shown are g r o s s , b e f o r e d e d u c t i o n of 3 8 basis p o i n t s fee paid by investors to s e r v i c e r s . 1 21 T A B L E 15: Private Housing Starts and Permits STARTS DATE 1971 - Apr. Hay June July Aug. Sept. Oct. Nov. Dec. 1972 - J a n . Feb. r/ Mar.r/ Apr. UNADJUSTED TYPE OF FINANCING FHA | VA OTHER SEASONALLY ADJUSTED ANNUAL RATE T O T A L 1 - F A M I L Y 2 OR M O R E 1,951 2,046 2,008 2,091 2,219 2,029 2,038 1,122 1,152 1,150 1,162 829 894 858 929 1,021 ANNUAL RATE)2 201.1 198.5 193.8 194.3 204.5 173.8 179.7 176.4 1,198 1,172 1,155 1,242 1,347 985 1,110 2,682 1,415 1,325 1,071 1,357 150.9 153.6 2,357 2,115 1,298 1,174 1,059 941 204.8 2,228 2,457 2,487 857 882 BUILDING PERMITS (SEASONALLY ADJUSTED 152.1 212.6 44.6 40.7 46.1 42.9 45.8 48.3 38.5 47.2 85.4 9.1 7.4 37.4 7.5 8.5 8.4 9.3 9.2 9.4 8,7 8.1 27.8 8.0 3 7 . 7 10.5 29.8 8.5 148.0 149.4 138.4 141.1 147.0 116.8 1,638 1.927 1,849 2,052 2,006 59.3 1,900 2,173 1,952 2,292 106.0 2,105 117.8 156.6 2,078 1.928 1,987 133.1 -120.1 T o t a l starts a r e C e n s u s e s t i m a t e s i n c l u d i n g farm for both p e r m i t - i s s u i n g and noi.-issuing a r e a s . A d w e l l i n g unit is started w h e n excavation begins; all units in an a p a r t m e n t structure are considered, started at that time. FHA and VA starts a r e units started u n d e r c o m m i t m e n t s by these a g e n c i e s to insure or guara n t e e the m o r t g a g e s . A s reported by FHA and V A , a unit is started w h e n a field o f f i c e r e c e i v e s the first 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 , w h i c h is m a d e before footings are poured in some cases but n o r m a l l y after the foundations have been completed. O t h e r starts are derived as a r e s i d u a l , although total and FHA and VA starts are not strictly c o m p a r a b l e in concept or timing; other starts inc l u d e b o t h units financed by c o n v e n t i o n a l m o r t g a g e s and units w i t h o u t m o r t g a g e s . B u i l d i n g p e r m i t s b e f o r e J a n u a r y 1963 are C e n s u s e s t i m a t e s for about 10,000 areas identified as h a v i n g a local b u i l d i n g permit system in 1959. Estimates beginning J a n u a r y 1963 a r e for 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 January 1967 13,000, or all k n o w n p e r m i t - i s s u i n g places. U n l i k e s t a r t s , seasonally adjusted b u i l d i n g perm 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 for d i f f e r e n c e s in the n u m b e r of w o r k i n g days per m o n t h , as w e l l as other d i f f e r e n c e s in timing and c o v e r a g e . 22 T A B L E 16: Mortgage and Bond Yields FHA MORTGAGES DATE 1 30-year 2 1 CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON C O N V . & FHA M O R T GAGES 5 1 NEW Aaa CORPORATE BONDS 4 S P R E A D BETWEEN Y I E L D S ON N E W C O R P O R A T E BONDS AND FHA M O R T G A G E S 6 1970 - H i g h Low 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 -.19 8.01 7.24 .50 -.36 1971 - Nov. Dec. 7.62 7.59 7.75 7.70 .13 .11 7.19 7.09 .43 .50 1972 - J a n . Feb. Mar. Apr. 7.49 7.46 7.45 7.50 7.60 7.60 7.55 7.60 .11 .14 .10 .10 7.07 7.16 7.22 7.31 .42 .30 .33 .19 1 2 3 4 5 6 N e i t h e r m o r t g a g e n o r bond y i e l d s i n c l u d e a l l o w a n c e for s e r v i c i n g costs which are G e n e r a l l y , b o n d s pay i n t e r e s t semimuch h i g h e r for m o r t g a g e s than for b o n d s . annually; mortgages, monthly. M o r t g a g e y i e l d s , if computed as equivalent to a semi-annual interest i n v e s t m e n t , w o u l d be slightly h i g h e r than given in the table. Based o n 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 bid prices in the p r i v a t e s e c o n d a r y m a r k e t for n e w - h o m e m o r t g a g e s for i m m e d i a t e d e l i v e r y . Data shown are for 3 0 - y e a r m o r t g a g e s w i t h m i n i m u m d o w n p a y m e n t s , and w e i g h t e d by p r o b a b l e v o l u m e of transactions. Y i e l d s computed by F H A , assuming p r e p a y m e n t period of 15 y e a r s for 3 0 - y e a r m o r t g a g e s . Based o n F H A - f i e l d - o f f i c e o p i n i o n o n t y p i c a l c o n t r a c t interest rates ( 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 in the m a r k e t areas o f insuring offices. S e e n o t e for T a b l e 1. Y i e l d spread e q u a l s c o n v e n t i o n a l m o r t g a g e r a t e less F H A s e c o n d a r y m a r k e t y i e l d . Y i e l d spread e q u a l s F H A secondary m a r k e t y i e l d less n e w A a a c o r p o r a t e bond yield. 23 TABLE 17: Conventional Mortgage Terms DATE NEW HOMES CON- FEES & CHARGES EFFEC- MATURITY TRACT (YEARS) RATE (PER TIVE CENT) RATE (PER CENT) 3 2 LOAN/ PRICE LOAN RATIO AMT. (PER ($000) CENT) 4 1 EXISTING HOMES CON- FEES & LOAN/ TRACT CHARGES EFFEC- MATU- PRICE (PER RATE TIVE RITY RATIO CENT) RATE (YEARS) (PER (PER CENT) CENT) 2 3 LOAN AMT. ($000) 4 1971 7 .37 7 .36 7 .38 7,.51 7,.60 7,.67 7..68 7..65 7.,62 0.73 0.71 0.74 0.90 0.84 0.97 0.97 0.87 0.93 7,.49 7 .47 7,.50 7..66 7..74 7..83 7.,84 1..79 7.,77 26.3 26.1 26.3 26.3 26.2 25.8 26.4 26.7 26.6 73.6 74.0 73.7 74.5 73.9 75.3 75.5 75.4 74.5 26.2 26.7 27.2 27.1 26.5 25.9 26.3 27.3 26.5 7.34 7.33 7.38 7.50 7.58 7.63 7.62 7.56 7.51 0.75 0.71 0.74 0.75 0.76 0.78 0.79 0.79 0.78 7.47 7.45 7.50 7.63 7.71 7.76 7.75 7.69 7.64 24.2 24.0 24.3 24.2 24.5 24.2 24.1 24.6 24.6 73.6 73.2 73.9 74.5 74.2 74.5 74.2 74.6 74.6 23.1 23.3 28.3 23.2 23.5 22.5 22.9 2:3.2 23.9 Jan. 7. 62 Feb. 7. 45 Mar.r/ 7. 38 Apr. £/ 7.,37 0.95 1.02 0.84 0.86 7. 78 7. 61 7. 52 7. 51 26.5 27.0 27. 2 27.1 75.0 76.5 76.2 75.6 27.6 27.8 28.2 28.4 7.45 7.35 7.31 7.29 0.82 0.79 0.77 0.78 7.58 7.48 7.44 7.42 24.7 25.4 25. 1 25.3 74.7 75.8 .75.6 75.2 24.1 24.8 24.4 24.9 Apr. May June July Aug. Sept. Oct. Nov. Dec. 1972 1 Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted opinions of field-office directors of the Federal Housing Administration, are available somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case of new home mortgage rates--in Table 16. 2 Fees and charges--expressed as a percentage of the principal mortgage amount--include loan commissions, fees, discounts, and other charges which provide added income to the lender and are paid by the borrower. They exclude any closing costs related solely to transfer of property ownership. 3 Includes fees & charges amortized over a 10 year period in addition to the contract interest rate. 4 Derived by FRB.
@FedFRASER