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L.5.8

DECONTROLLED AFTER SIX MONTHS

Confidential (F.R.)

May 8 ,

CAPITAL
MARKET
DEVELOPMENTS

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




1972

hs-i

INDEX
3-5

Developments in the Corporate and Municipal Bond Markets

6-7

Capital Market Y i e l d s

8-13

C a p i t a l Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:

e

Estimate

p

Preliminary

r

Revised

n.a.

Not available




T A B L E 1: Yields, Volume and Reception
C O R P O R A T E BOND M A R K E T
W E E K ENDING:

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa
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

May

7.20
n. a.

7.34
n.a.

601
300e

70
n.a.

n.a.
n.a.

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

YIELDS
W E E K ENDING:

May

VOLUME 2
PER C E N T
SOLD BY END
BONDS SCHEDULED
OF W E E K
W I T H I N 28 DAYS

7
14
21
28

1972 - Apr.

1972 - A p r .

GROSS
OFFERINGS

MOODY'S
SEASONED
Aaa

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

GROSS
OFFERINGS

PER C E N T
SOLD BY END
OF W E E K

1
I' BONDS SCHEDULED
j W I T H I N 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

5.10
n.a.

5.35
n. a.

478
363e

73
n.a.

1,246
n.a.

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

See

footnotes to Table




3

indicated.

TABLE 2: Details on Inventories
t A n:
)
! I'T.RKl)
F

;

, : nu
\
f i L. <0
:i ,

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
[ORIGINAL"f RATING AND
COUPON | YIELD [CALL PROTECTION
ISSUER

1

25. 0
175. 0
75. 0
50.
,0
,0
75.

5/2
5/2
5/2
5/3
5/4

First Commercial Bks
Southwestern Bell Tel
Southwestern Bell Tel
Security Mtg Investors
G.E. Credit Corp

7
7
6
7
6

3/4
3/8
1/2
1/4
5/8

7.79
7.40
6.60
7.25
6.625

NR
Aaa
Aaa
NR
NR

8
5
5
5
5

1

yrs
yrs
yrs
yrs
yrs

ESTIMATED PROPORTION SOLD
807=
30%
65%
80%
75%

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

OFFERED

AMOUNT

NONE

INVENTORIES f
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
. 1972 - Apr.

May

7
14
21
28
5

680
654
610r
621r
738

140
94
89
72
99

CORPORATES
IN SYNDICATE
94
64
15
10
183e

N.C. - No call protection.
1
All figures in millions of dollars. Blue List is daily average for week ended Friday, except for latest week
of three days ended Wednesday. All other figures are as of Friday.

 daily average
which IF


T A B L E 3: High Grade Bond Yields
U.S. G O V E R N M E N T
20-YEAR

BOND
BUYER'S
SEASONED
MUNICIPALS 4

NEW
CORPORATE
Aaa 1

MOODY'S SEASONED
CORPORATE
Aaa 2

1970 - High
Low

9 . 3 0 (6/19)
7.68 (12/18)

8 . 6 0 (7/3)
7.48 (12/21)

7.55 (5/29)
6.17 (12/18)

7.12
5.33

(5/29)
(12/11)

1971 - High
Low

8.23
6.76

7.71 (8/13)
7.06 ( 2 / 1 2 )

6.51
5.69

(6/18)
(3/23)

6.23
4.97

(6/24)
(10/21)

1972 - H i g h
Low

7.42 (4/21)
6 . 8 6 (1/14)

7.36
7.16

6 . 1 9 (4/14)
5.96 ( 1 / 1 4 )

5.54
4.99

(4/13)
(1/13)

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

5

7.20

7.34

6.15

5.35

DATE

Apr.

May

1
2
3
4

(5/12)
(1/29)

(4/28)
(1/21)

CONSTANT
MATURITIES

3

N e w c o r p o r a t e i s s u e s , w i t h call p r o t e c t i o n , a d j u s t e d (as d e s c r i b e d in
f o o t n o t e 1 of T a b l e 1) to a A a a b a s i s .
W e e k l y a v e r a g e of daily figures. A v e r a g e term of b o n d s i n c l u d e d is
2 2 - 2 4 years.
W e e k l y a v e r a g e of daily figures.
T h u r s d a y figures.
T h e a v e r a g e r a t i n g of the 20 b o n d s used in this i n d e x
falls m i d w a y b e t w e e n the four top g r o u p s as c l a s s i f i e d b y M o o d y ' s Investors Service.

N o t e - - H i g h s and lows a r e for i n d i v i d u a l
for d i f f e r e n t series.




s e r i e s and m a y be on d i f f e r e n t d a t e s

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 1

PERIOD

STATE A N D L O C A L

1971

1970

January
February
March

3 ,151
3 ,315
3 ,550e

3 ,115
3 ,000
6 ,075

2,636
1,802
3,539

April
May

3

4 ,042
3 ,271
4 ,375

1

1971

1,340
1 ,214
1 ,555

1,891
2,167
2,013

\

1970

2,732
1,851
2,258

2 ,020e

3,170
3,909
3,389

1972
1 ,762
1 ,953
2 ,195

|

1972

2

1 ,647
996
1 ,085

July
August
September

4 ,147
2 ,532
3 ,768

2,768
2,274
3,518

1,989
1,903
2,098

1,348
1 ,359
1 ,758

October
November
December

3., 3 8 7
3 ;
,704
3,673

3,777
4,182
3,980

1,728
2,264
2,068

1.
,924
1,748
2., 1 9 0

12, 190
11, 6 8 8
10, 4 4 7
10, 7 6 4

7,977
10,468
8,560
11,939

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

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

23,8 4 4
3 4 , 325
4 5 , 089

18,445
27,005
38,944

12,912
18,902
24,962

7,837
12, 3 0 2
18,164

-

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st h a l f
T h r e e quarters
Year

10, 016 e

5,,910e

!
I

S e c u r i t i e s and Exchange C o m m i s s i o n e s t i m a t e s of gross p r o c e e d s .
Investment 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 .




.

TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

QUARTER
OR
MONTH

TOTAL

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

1971 - II
III
IV

11,688
10,447
10,764

6,546
4,725
5,135

1 758
1 641
2 439

3,384
4,079
3,193

215
114
133

1972 - I e/

10,016

5,323

1 723

2,967

1971 - Mar.

6,075

4,135

647

Apr.
May
June

4,042
3,271
4,375

2,116
2,148
2,282

507
491
760

July
Aug.
Sept.

4,147
2,532
3,768

1,331
1,428
1,966

Oct.
Nov.
Dec.

3,387
3,704
3,673
3,151
3,315
3,550
3,050

1972 - Jan.
Feb.
1
Mar. e/
Apr. e/
1

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

OTHER
ISSUERS 1

1,351
652
767

3,130
2,202
2,453

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

896
,263
2.
1 ,053
=

4,753
3,331
4,164

n.a.

456

1,404

2,
,342

1 ,457
=

4,815

1,293

38

557

2,417

,452
1,

532

1,675

1,419
633
1,332

116
47
52

384
255
712

1,135
588
1,206

1,
,267
588
1,
,055

273
405
218

1,367
1,489
1,897

619
416
606

2,196
687
1,196

72
34
8

199
160
293

582
474
1,146

732
849
1,
,070

1 ,622
359
282

1,210
850
1,271

1,942
2,003
1,190

723
433
1 ,283

723
1,269
1,201

59
62
12

222
395
150

662
811
980

933
1 ,217
891

432
269
352

1,360
1,408
1,450

1,767
1,906
1,650
1,600

552
371
800
550

829
1,038
1,100
900

59
13
n.a.
n.a.

254
194
180
70

378
521
505
575

529
988
825
1 ,225

749
498
210
180

1,496
1,309
2,010
1,070

Other issuers are extractive, railroad and other transportation, real estate
and financc, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are available.




COMMUNICATIONS

T A B L E b:

Large Loncj term Public Security Issues for New Capital (contmm d)
(Other than U.S. Treasury) 1
M a y ,1, thru M a y 5,
i

(MILLIONS
ISSUER

TYPE

2

Corporate
So. C a l i f E d i s o n
H o s p i t a l i t y M o t o r I n n s , Inc
P u n t a G o r d a I s l e s , Inc
F i r s t C o m m e r c i a l Banks
Southwestern Bell Tel
Southwestern Bell Tel
Sun O i l Co
S e c u r i t y M t g Inv.
F i r s t Pa B a n k i n g & Tr C o
Gen'l Elect Credit Corp




Pref
C m St
Conv deb
Deb
Debs.
Notes
Debs
Debs
Debs
Bonds

OF
DOLLARS)
75.0
24.8
15.0
25.0
175.0
75.0
100.0
50.0
30.0
75.0

MATURITY

R A T E OR
'
N E T INTEREST C O S T
j
7 5/8
—

——

1992
2002
2012
1979
2002
1982
1979
1977

,

6.00
7 3/4
7 3/8
6 1/2
7 1/8
7 1/4
6 7/8
6 5/8

1

MOODY S
iM-TKRIL(.
, RATING
YIELD
7.625
--

6.do
7.79
7.40
6.60
7.21
7.25 6.88
6.625

Aa
—
—
--

Aaa
Aaa
Aa
-—
—
—

•

1972

T A B L E b.

Large Long term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1
May
AMOUNT
(MILLIONS

!
ISSUER
State & Local
MaComb Co, M i c h
MaComb
P e n n s y l v a n i a , S t a t e of
P e n n s y l v a n i a , S t a t e of
Alabama State Dock Dept.
B a t t e r y P a r k City A u t h
B a t t e r y Park City A u t h

*
1
2

3

TYPE

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

2

OF
DOLLARS)
6.0
10.4
50.0
50.0
15.0
45.2
154.8

MATURITY

1972-2001
1972-2001
1974-2001
1999
1973-1992
1980-1995
2014

COUPON
R A T E OR
N E T INTEREST C O S T
5.49
3.82-5.15
4.99
-—

5.11
6.35
6.35

1,

t h r u May

|
J

i>FFKR11. c
YIELD

5,

MOODY'S
RATING

2.,90-5.70
,70-5.25
2.
3.,00-5.60

A
A
A-1

3.
,00-5.55
3,
.00-5.70
.80-6.00
4,
6,
.38

Aa
A
A
A

flights
ottering.
I n c l u d e s c o r p o r a t e and other security o f f e r i n g s of $15 m i l l i o n and over;
State and local security o f f e r i n g s of $10 m i l l i o n and o v e r .
In case of S t a t e and local government s e c u r i t i e s , G . O . d e n o t e s general o b l i g a t i o n ;
•iev.-Ut., revenue o b l i g a t i o n s secured only by i n c o m e from public u t i l i t i e s ;
Rev.-Q.-lit., revenue bonds secured only by income from q u a s i / u t i l i t i e s ; R e v . - S . T . ,
revenue b o n d s secured by r e v e n u e from specific taxes^Dnlj/^JK-v.-Rent., r e v e n u e
b o n d s secured solely by lease payments.
z'
I n c l u d e s foreign g o v e r n m e n t and I n t e r n a t i o n a l Bapft for R e c o n s t r u c t i o n and
D e v e l o p m e n t issues and n o n - q u a r a n t e e d i s s d ^ s ^ r F e d e r a l A g e n c i e s .




1972

10
T A B L E 7: Forthcoming Large Long-term Public Security Offrnnq^ for New Capital
(Other than u s. Treasury) 1
As of M a y 5, 1972
1 •
ISSUER

TYPE

Corporates
Bait Gas & Elect
Kansas City P w r & L t
BancOhio Corp
Consolidated Nat Gas .
Fruehauf Finance
G e n ' l T e l e of the N W
C e n t r a l 111 Pub S v c .
Heublein, Inc.
P r o c t e r & G a m b l e Co.
H a n o v e r Square R e a l t y I n v e s t o r s
Gulf Pwr
B a r n e t t Banks of F l a . Inc.
Median Mtge Investors
Utah Pwr & Lt.
Utah Pwr & Lt.
Pacific Lighting
Metropolitan Edison
N a t i o n a l Fuel G a s
C o l u m b u s & So. O h i o E l e c t C o .
^ C o l u m b u s & S o O h i o E l e c t Co.
C & P T e l e C o of V a
Whittaker Corp
American Natural Gas
Duquesne Light Co
Va. Elect & Pwr
A m e r i c a n M e d i c o r p , Inc
Institutional Investors Trust
Avco F i n a n c i a l C o r p
M e d i c a l M t g e Inv.
Fla Pwr
rla P w r
Colorado Interstate Gas
Wise-Mich Pipeline
Consumers Pwr
I o w a Pub Svc
Hartford E l e c t L i g h t
Fidelco Growth Investments
M o b i l Oil C o r p
Pennzoil L a , & Texas Offshore




1

C o m stk
Debs
Debs
Debs
Debs
1st m t g e
Debs
Conv debs
Debs
C o n v debs
Bonds
Debs
Conv debs
Bonds
C o m stk
P r e f stk
1st m t g e
Debs
Bonds
C o m stk
Debs
Conv debs
C o m stk
1st m t g e
C o m s t k (rts)
Debs
Conv debs
Bonds
Debs

Pref stk
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
Conv debs
Debs
Conv debs

AMOUNT
(MILLIONS
OF
DOLLARS)
45.0
30.0
25.0
50.0
50.0
20.0
30.0
100.0
100.0
25.0
22.0
20.0
15.0
25.0
25.0
30.0
26.0
23.5
25.0
17.0
100.0
25.0
55.0
35.0
45.0
30.0
30.0
50.0
50.0
30.0
50.0
35.0
50.0
70.0
17.0
35.0
25.0
300.0
130.0

APPROXIMATE
OF OFFER]
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
June
June
Ju.e
June
June
June
June
INDEF
INDEF
INDEF

8
10
10
11
11
11
15
16
16
16
16
16
16
17
17
17
18
18
18
18
22
23
23
24
31

1
1
1
5
6
7
8

T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)
.
,
r „

ISSUER

TYPE

S t a t e and L o c a l
Dallas-Ft. Worth Reg Auth, Tex.
Rev
Greater Anchorage Area Borough,
Alaska
Rev.
Hampton Rds Sanit. Dist., Va.
Rev.
Norfolk, Va.
G.O.
New Jersey Hsg Finance Agency
Rev.
Milwaukee
G.O.
Monroe, Co, N.Y.
Rev.
P o r t of P o r t l a n d , O r e
G.O.
Texas Tech University, Texas
G.O.
Penna S t a t e P u b S c h o o l B l d g ,
Auth, Harrisburg
Rev.
Columbus, Ohio
G.O.
Detroit, Mich
Rev.
King Co., Wash
G.O.
P u e r t o R i c o B l d g Auth
Rev.
A l a s k a , S t a t e of
G.O.
Ann Arundel Co., M d .
G.O.
C a l i f o r n i a , S t a t e of
G.O.
Ohio University
Rev.
Dallas, Tex.,
G.O.
N e w Y o r k State Housing
G.O.
Florida
G.O.
Los Angeles DWAP
G.O.
Cincinnati
G.O.
P o r t of T a c o m a , W a s h
G.O.
U n i v e r s i t y of S t a t e of T e x a s
G.O.

*

Included

in table for first

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF O F F E R I N G

37.5

May

8

13.0
12.0
15.0
59.0

May
May
May
May

8
9
9
9

12.3
15.0
25.0
12.5

May
May
May
May

9
10
10
11

50.0
16.5
13.7
, 17.3
26.5
30.0
15.0
94.9
24.7
35.0
175.0
54.0
40.0
9.8
15.1
12.0

May
May
May
May
May
May
May
May
May
May
May
May
June
June
June
June

11
15
16
16
17
17
23
23
24
24
24
7
7
8
12

lime.

Includes corporate and other issues of 515 m i l l i o n and over; State and
G o v e r n m e n t issues of S10 m i l l i o n and over.

local

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




12

Table 8

STOCK PRICES AND VOLUME
STOCK PRICES 1 -

TRADING VOLUME 2 -

DATE
NYSE INDEX 3 '

D.J. INDUSTRIALS

NYSE

AMEX *

AMEX

1970 - H i g h
Low

52.36
37,69

(1/5)
(5/26)

8 4 2 . 0 0 ( 1 2 / 2 9 ) 2 7 . 0 2 (1/8)
6 3 1 . 1 6 (5/26) 19.36 (5/27)

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

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

1971 - H i g h
Low

57.76
48.73

(4/28)
(1/4)

9 5 0 . 8 2 (4/28) 2 6 . 6 8 (4/28)
7 9 7 . 9 7 ( 1 1 / 2 3 ) 2 2 . 7 2 (1/4)

2 2 . 1 (2/12)
11.0 (9/17)

6 . 7 (2/5)
2 . 7 (8/13)

1972 - H i g h
Low

61.28

(3/14)
(1/3)

9 6 7 . 7 2 (4/14) 28.53 (4/14)
8 8 9 . 3 0 (1/3)
2 5 . 6 1 (1/3)

21.2

56.23

14.0 (3/31)

7.4 (3/10)
4.0 (5/5)

1972 - M a r . 2 4
31

60.39
59.68

939.87
940.70

28.32
27.87

21.2
14.0

4.8
4.0

7
14
21
28

61.08
61.28
60.72
60.00

962.60
967.72
963.80

28.31
28.53

19.8
19.9

6.0
6.3

954.17

28.30
27.96

18.1
15.9

5.7
4.3

5

59.30

941.23

27.53

14.4

4-0

Apr.

May

(3/24)

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, 196*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

13
T A B L E 9: Security Credit

END O F PERIOE

CUSTOMERS 1
NET DEBIT
BALANCES

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS' 1 BANKS"
TOTAL

NET CREDIT
C U S T O M E R S ' N E T E X T E N D E D BY
BROKI RS A N D
FREE C R E D I T
DEALERS 3
BALANCES

Outstanding
1971

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

2,550
2,440
2,210
2,200
2,100
2,160
2,170
2,220

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

(4)
(4)

2,488
2,542

(4)
(4)

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

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

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

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

Jan.
Feb.

5,700
6,180

2,490
2,510

8,190
8,690

90
210
230
90
100
70
60
80
20
-40
490

30
30
-20

120
240
210
90
150
100
70
80

-20
-10
40

--

--

-50
530

—

300
480

50
20

350
500

"

2,743
2,798
2,660

C h a n g e in
Outstanding;
1971

1972

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

50
30
10

——
-—

—

---

-__

291
55
-138
-iio
110
230
-10
100
60
10
50
268
54

——
--—
-—
--—
—
---

M a r g i n d e b t , as reported by the N e w Y o r k Stock E x c h a n g e .
A l t h o u g h m a r g i n do bt
ucl i
until 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
loans included is thought to h a v e beep small.
" R 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 carivin
ritics 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
dit b a l a n c e s , this figure r e p r e s e n t s the net c r e d i t extended by brokers 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 bank loan d a t a , figures are supplied by tin- New York
i
Stock E x c h a n g e and are e n d ' o f m o n t h d a t a .
B a n k loans are for weekly reporti v g
large c o m m e r c i a l b a n k s .
B r o k e r data i n c l u d e s loans for regulated s e c u r i t i e s
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
NET
REGULAR DEPOSITS 3
NEW
ANNUAL
MONEY 2
GROWTH
NET
1
RATE
FLOW

SAVINGS <t LOAN ASSOCIATIONS
S
NET
SHARE CAPITAL
NEW
ANNUAL
MONEY2
NET
GROWTH
1
FLOW
RATE

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

;

NET
NEW
MONEY 2

Not Seasonally Adjusted
2,549
4,517
9,623

>9
'0

n

- January
February
March

791
906
1,604

72 - January
February £/
March e/

856
931
1,550

4.0
6.8
13.5

--

—
--

3.1
8.1
19.4

-763
936
5,678

4,068
10,965
28,244

637
811
955

2,609
2,444
4,108

——

716
.809
n.a.

3,266

--

2,818
4,299

--

—

3.
,4
7.
,7
17,
,5

6,617
15,482
37,867

2,476
2,340
2,627

3,383
3,350
5,712

~
-

3,113
3,151
3,582

3,117
2,684

4,122

-

3,833

3,749

--

3,493
n.a.

5,849

Seasonally Adjusted
71 - August
September
October
November
December

539
683
599
659
836

8.4
10.5
9.1
10.0
12.5

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

11.2
15.4
14\8
12.1
14.2

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

10.
,3
13.
,8
13.
.0
ii:
.4
13,
.7

23 .9
5 ,066
28.4
4,118
14.1
948
72 - January
861
12.6
2,955
19.9
3.
,816
February g/
17.
.6
,032
March, ey
15.0_.
.-- 18 .8
1*103
20. a
,
4. 135
•rease in l |
e'
Annual growth rate for monthly data is the annualized monthly percent age i nv
Net Nt'v. Money is new deposits nvt of both withdrawals and interest.
i>ata for S&T,s
insured associations only, which represent 967, of industry total resources.
Regular deposits at mutual savings hanks exclude items such as Christinas club and e
escrow accounts, which represent a very small part of total deposits.
Loan Hank Hoard.
SOl'KCK: National Association of Mutual Savings Hanks and Federal Hon




-1,766
6,231
26,330

-1,003
5,285
20,652

T A B L E 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

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

|
TOTAL

1

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

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

(Billions of D o l l a r s , Sea sonally A d j u s t e d )
Mar.
Apr.
May
June
July
Aug,
Sept.
Oct.
Nov.
Dec.

12. 6
13. 7
1 4 . ,5
15. 9
1 6 ., 2
1 6 , ,3
1 6 ,, 4
1 6 . ,3
16, . 6
16, , 6

10. 1
11. 0
11. 6
1 2 . ,8
1 3 ., 1
1 3 . ,2
1 3 ., 2
1 3 ., 1
1 3 ., 2
13, , 1

2.5
2.7
3.0
3.1
3.1
3.1
3.2
3.3
3.4
3.6

,
1. 2 8
1. 15
,90
1. 3 1
,
,30
,12
,08
,02
,20
.09

1. 1 1
,
,90
,56
,
1, 2 6
,29
. 14
.07
.05
.08
.06

.17
.25
.34
.05
.01
-.01
.14

Jan.
Feb.

17,, 0
18 . 3

13,, 3
14.2

Mar.

19 . 5

15,. 2

3.7
4.1
4.3

.30
.
l' 3 4
1,. 1 9

.12
.97
.97

.18
.37
.22

.07
.12
.15

Rri.icd on data from Federal H o m e L o a n B a n k B o a r d and S a v i n g s B a n k s A s s o c i a t i o n s of N e w Y o r k State.
D a t a for s a v i n g s banks and S & L ' s i n c l u d e a m i n o r a m o u n t of n o n r e s i d e n t i a l c o m m i t m e n t s .
S&L
c o m m i t m e n t s include loans in p r o c e s s .
N e w c h a n g e s are d e r i v e d d i r e c t l y from u n r o u n d e d o u t s t a n d ings levels as r e p o r t e d and after s e a s o n a l a d j u s t m e n t by F e d e r a l Reserve,,
S u b t o t a l s m a y not add
to totals b e c a u s e of r o u n d i n g .




16

T A B L E 12: Net Change in Mortgage Holdings

DATE

1968
1969
1970
1971p

TOTAL
INCLUDING
FNMA-GNMA
23,796
23,867
21,945
41,611

TOTAL

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

1

FINANCIAL INSTITUTIONS
LIFE
MUTUAL
SAVINGS &
INSURANCE
COMMERCIAL
SAVINGS
LOAN
BANKS
COMPANIES
BANKS
ASSOC.
Not Seasonally Adius ted
.

FNMA-GNMA

6,677
5,404
2,462

2,798
2,533
1,956

9,344
9,572
10,254

2,469
1,983
2,363

2,508
4,375
4,910

9,564

4,212

24,226

1,221

2,388

1971

Dec.

4,616

4,327

700

596

2,338

693

289

1972

Jan.
Feb.
Mar.

2,427

2,248

2,711

2,474

600
500
1,000

274
259

1,453
1,776
2,552

-79
*-Crl

179
237

n.a.

n.a.

n.a.

n.a.

n.a.

'

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

1972

1

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

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

Jan.
Feb.
Mar.

3,023
3,215

2,874
2,965

-•

1971

-

394
475
690
685
864
1,219
977
901
902
884
752
826
788
654
1,061

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

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

272
296

1,813
2,042
2,592

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

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

1
-27

149
250

n. a.

n.a.

M o n t h l y data for c o m m e r c i a l b a n k s based on Federal R e s e r v e e s t i m a t e s benchmarked
to C a l l R e p o r t data on real e s t a t e loans o u t s t a n d i n g as a v a i l a b l e .
O t h e r data
derived from m o r t g a g e debt o u t s t a n d i n g as reported s e p a r a t e l y by N a t i o n a l A s s n .
of M u t u a l S a v i n g s B a n k s , Federal H o m e L o a n Bank B o a r d , I n s t i t u t e of L i f e Insurance
a n d , through A u g u s t 1968, the Federal N a t i o n a l M o r t g a g e A s s o c i a t i o n , and thereafter by FNMA and the G o v e r n m e n t N a t i o n a l M o r t g a g e A s s o c i a t i o n .
Data for m u t u a l
savings banks and for L i f e I n s u r a n c e c o m p a n i e s m a y d i f f e r somewhat from those
derived from regular q u a r t e r l y series because of m i n o r c o n c e p t u a l d i f f e r e n c e s for
which a d j u s t m e n t s are not m a d e in the m o n t h l y series.
A l t o g e t h e r , these groups
a c c o u n t e d for 8 6 per cent of the net increase estimated for all h o l d e r s in 1971 ,




17

T A B L E 13: Net Increases in Mortgage Debt Outstanding

1

B i l l i o n s of d o l l a r s , S A A R TOTAL

RESIDENTIAL3

1- to 4 FAMILY

16.0
20.8
26.3
27.2

10.3
14.0
18.9
19.7

7.0
10.6
15.1
15.9

II
III
IV

28.1
26.4
25.8
29.4

19.4
18.2

1969 - I
II
III
IV

MULTIFAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

3.3

3.9

7.2

1.8

3.4
3.8
3.8

5.0
4.9
4.7

8.4
8.8
8.5

1.8
2.5
2.8

17.4
20.2

16.2
15.0
13.9
16.3

3.2
3.2
3.5
3.9

6.4
6.0
6.6
7.3

9.5
9.2
10.1
11.2

2.3
2.2
1.8
1.9

31.8
29.1
26.2
24.9

23.6
21.5
19.0
18.2

19.2
16.8
14.4
13.0

4.4
4.7
4.7
5.3

6.1
5.4
5.4
5.2

10.5
10.1
10.0
10.5

2.2
2.2
1.7
1.4

1970 - I
II
III
iv-

20.6
22.9
29.1
31.3

14.2
16.9
21.8
22.5

9.1
11.5
15.5
16.0

5.1
5.4
6.3
6.5

4.8
4.6
5.2
6.7

9.9
9.9
11.5
13.2

1.5
1.5
2.1
2.2

1971 - I

37.1
47.8
53.6
53.4

26.6
36.1

18.5
26.4

8.1
9.7

8.-3
9.4

16.3,
19.1

40.1
40.1

31.4
31.4

8.7
8.7

11.2
10.8

19.9
19.5

2.2
2.3
2,3
2.5

56.3

42.6

32.4

10.1

11.6

21.7

2.1

QUARTER
1967 - I
II
III
IV
1968 - I

IL

nir
IVr
1972 - Ie

FARM

1 D e r i v e d from data on m o r t g a g e debt o u t s t a n d i n g from Federal D e p o s i t I n s u r a n c e
C o r p o r a t i o n , Federal H o m e L o a n Bank B o a r d , I n s t i t u t e of L i f e I n s u r a n c e , National A s s o c i a t i o n of M u t u a l S a v i n g s B a n k s , D e p a r t m e n t s of C o m m e r c e and A g r i c u l t u r e , Federal N a t i o n a l M o r t g a g e A s s o c i a t i o n , Federal H o u s i n g A d m i n i s t r a t i o n ,
V e t e r a n s A d m i n i s t r a t i o n and C o m p t r o l l e r of the C u r r e n c y .
S e p a r a t i o n of n o n farm m o r t g a g e debt by type of p r o p e r t y , w h e r e not a v a i l a b l e , and i n t e r p o l a t i o n s
and e x t r a p o l a t i o n s , w h e r e r e q u i r e d , estimated m a i n l y by Federal R e s e r v e .
2 M a y d i f f e r somewnat from related flow of funds series m a i n l y b e c a u s e of m o r e
a g g r e g a t i v e type of seasonal a d j u s t m e n t .
3 R e s i d e n t i a l m o r t g a g e debt includes n o n f a r m only and is sum of 1 - t o 4 - family
and m u l t i f a m i l y m o r t g a g e debt combined.




T A B L E 14:

FNMA Weekly "Auction" Results
IMPLICIT YIELD2(per cent)

C O M M I T M E N T S IN $ M I L L I O N S
ACCEPTED
TOTAL
OFFERED

TOTAL

10
24

136.9
103.6

72.9
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
176.31

WEEK '
ENDED
Jan.
Feb.
Mar.
Apr.

4M0NTH

6M0NTH

1 -YEAR 11
4MONTH
& OVER

__

—

--

---——
—
. —

6M0NTH

1-YEAR
& OVER
—

7.61
7.61

--

--

7.61
7.61

——

-—

"

7.56
7.54

-—

7.56
7.60

-—

——
-——

NOTE:
U n d e r the F N M A a u c t i o n s y s t e m , approved sellers of G o v e r n m e n t u n d e r w r i t t e n m o r t g a g e s bid for F N M A 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 yield a f t e r a l l o w a n c e for c o m m i t m e n t fee and
required p u r c h a s e and h o l d i n g of F N M A s t o c k , 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 b a s i s points fee paid by investors
to s e r v i c e r s .




1

19

T A B L E 15: Private Housing Starts and Permits

!

STARTS

DATE

j
SEASONALLY A D J U S T E D
j
A N N U A L RATE
!
TOTAL(1-FAMILY 1 2 OR M O R E '
'
1

TOTAL

'

102.2

1971 - F e b .
Mar.
. Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1,794
1,938
1,951
2,046
2,008
2,091
2,219
2,029
2,038
2,228
2,457

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

985

198.5
193.8
194.3
204.5
173.8
179.7
176.4

1,110

1972 - J a n .

2,487
2,655
2,359

1,415
1,313
1,283

1,071
1,324
1,077

Feb. £ /
M a r . j)/

1,005
1,122
1,152
1,150

1,162

789
858
829
894
858
929

1,021
857

882

I
-

I

27.3
33.5
44.6
40.7
46.1
42.9
45.8
48.3
38.5

8.1

152.1

47.2
85.4

9.1
7.4

150.9
152.2
205.2

35.7
7.5
27.8
8.0
3 7 . 7 10.5

167.9

201.1

4.7
6.9
8.5
8.4
9.3
9.2
9.4
8.7

BUILDING
PERMITS
(SEASONALLY
1 ADJUSTED

I

ANNUAL
RATE) 2

'

I

1,080

UNADJUSTED
I TYPE OF FINANCING
1
FHA | VA |
OTHER

70.2
127.6
148.0
149.4
138.4
141.1
147.0

1,563
1,627
1,638
1,927
1,849
2,052

116.8

59.3

1,900
2,173
1.952
2,292

107.7
116.4
157.0

2,078
1.953

133.1
120.1

2,006

2,105

T o t a l starts are C e n s u s estimates including farm for both p e r m i t - i s s u i n g and
noi.-issuing areas.
A dwelling unit is started w h e n excavation begins; all units
in an apartment structure are considered started at that time.
FHA and VA
starts are units started under commitments by these agencies to insure or guarantee the m o r t g a g e s . A s reported by FHA and VA, a unit is started when a field
office receives the first c o m p l i a n c e inspection 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 comparable in concept or timing; other starts include both units financed by conventional 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 permits before January 1963 are C e n s u s estimates for about 10,000 areas
identified as having a local building permit system in 1959.
Estimates beginning
January 1963 are for approximately 12,000 and b e g i n n i n g January 1967 13,000, or
all known p e r m i t - i s s u i n g places.
Unlike starts, seasonally adjusted building perm i t s reflect direct adjustment for d i f f e r e n c e s in the number of w o r k i n g days per
m o n t h , as well as other differences in timing and coverage.




20

T A B L E 16: Mortgage and Bond Yields
CONVEN-

30-year
. L

TIONAL
MORTGAGES
3

1970 - High
Low

9.29
8.40

8.60

1971

S P R E A D BETWEEN YIELDS
ON C O N V . &
FHA M O R T GAGES 5

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
Y I E L D S ON N E W
CORPORATE BONDS
AND
FHA M O R T G A G E S 6

1

7.95
7.55

.28

8.01

-.19

7.24

.50
-.36

- Aug.
Sept.

7.92
7.84

7.85
7.85

.07

7.65
7-44

.27
.40

7.75
7.62
7.59

7.80
7.75
7.70

.05
.13

.11

7.29
7.19
7.09

.46
.43
.50

- Jan.
Feb.

7.49
7.46

7.60
7.60

.11
.14

7.07
7.16

.42
.30

Mar.

1972

7.97
7.32

Oct.
Nov.
Dec.

1971

9.11
7.80

.99

8.30

-.10
-.74

7.45

7.55

.10

7.22

High
Low

.01

.01

.

^33

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

table.
2. B a s e d 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 p r i c e s in the p r i v a t e
s e c o n d a r y m a r k e t for n e w - h o m e m o r t g a g e s for i m m e d i a t e d e l i v e r y .
Data shown
a r e 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 b y p r o b a b l e
volume of transactions.
Y i e l d s computed b y F H A , a s s u m i n g 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 .
3
B a s e d o n F H A - f i e l d - o f f i c e o p i n i o n on t y p i c a l c o n t r a c t i n t e r e s t rates ( r o u n d e d ) o n
c o n v e n t i o n a l first m o r t g a g e s p r e v a i l i n g in the m a r k e t a r e a s of i n s u r i n g
offices.
4
See n o t e for T a b l e 1.
5
Yield spread e q u a l s c o n v e n t i o n a l m o r t g a g e r a t e
less F H A s e c o n d a r y m a r k e t yield.
6
Yield spread e q u a l s F H A s e c o n d a r y m a r k e t yield less n e w A a a c o r p o r a t e bond
yield.




21

TABLE 17. Conventional Mortgage Terms

DATE

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

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

1

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

LOAN
AMT.
($000)
4 .

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

7 .52
7 .37
7 .36
.38
7,
7.
.51
.60
7.
.67
7,
.68
7.
,65
7.
,62
7.

0.83
0.73
0.71
0.74
0.90
0.84
0.97
0.97
0.87
0.93

7 .66
7 .49
7 .47
7 .50
7 .66
.74
7,
.83
7,
.84
7,
.79
7.
7.
,77

25 .9
26 .3
26 .1
26 .3
26,.3
26,.2
25..8
26.,4
26.,7
26.,6

73 .7
73 .6
74.0
73 .7
74,
.5
73.
.9
.3
75.
75.
.5
75.
.4
,5
74.

26.0
26.2
26.7
27.2
27.1
26.5
25.9
26.3
27.3
26.5

7.47
7.34
7.33
7.38
7.50
7.58
7.63
7.62
7.56
7.51

0 .77
0 .75
0 .71
0 .74
0.
.75
0,
.76
0,
.78
0.
.79
0.
.79
0.
,78

7 .60
7 .47
7 .45
7 .50
7 .63
7 .71
.76
7,
7,
.75
.69
7,
.64
7.

2 4 .1
24,.2
24,.0
24.3
24,.2
24..5
24..2
24.,1
24.,6
24. 6

73.5
73.6
73.2
73.9
74.5
74.2
74.5
74.2
74.6
74.6

23.0
23.1
23.3
28.3
23.2
23:5
22.5
22.9
23.2
23.9

7. 62
7. 45
7. 39

0.95
1.02
0.81

7. 78
7. 61
7. 52

26. 5
27. 0
27. 1

75. 0
76. 5
76. 0

27.6
27.8
28.2

7.45
7,35
7.32

0. 82
0. 79
0. 75

7. 58
7. 48
7. 44

24. 7
25. 4
25. 0

74.7
75.8
75.3

24.1
24.8
24.4

1972
Jan.
Feb.
Mar.

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.




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