Full text of H.16 Capital Market Developments : November 1, 1971
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/ L.S.8 Cenfidenti.1 (F.R.) HTE011 ® AFTER SIZ UONTSS L^ /jBd APITAL MARKET DEVELOPMENTS November ' INDEX 3-5 D e v e l o p m e n t s in the Corporate and Municipal Bond Markets 6-7 Capital Market Y i e l d s 8-13 Capital Market Volume 14-17 Stock Market 18-33 Mortgage Market SYMBOLS: e Estimate p Preliminary r Revised n o. Not a v a i l a b l e 3 TABLE 1: Yields, Volume and Reception YIELDS MOODY'S SEASONED 1 NEW ISSUE Aaa WEEK ENDING: 1971 - Sept. Oct. Nov. 3 10 17 24 7.38 7.21 7.56 7.60 7.45 7.42 7.44 7.44 413 285 673 832 54 77 93 90 n.a. n.a. n.a. n.a. 1 8 15 22 29 7.53 7.30 7.22 7.17 7.11 7.46 7.44 7.42 7.37 7.3]X 123 371 471 536 521 82 77 74 94 48 n.a. n.a. n.a. n.a. 5 WEEKENDING: 1971 - Sept. Oct. CORPORATE BOND MARKET VOLUME,2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS MOODY'S SEASONED Aaa YIELDS BOND BUYER SEASONED 20 BOND INDEX n.a. ASOa MUNICIPAL BOND MARKET VOLUME 2 GROSS OFFERINGS PER CENT SOLD BY END OF WEEK BONDS SCHEDULED WITHIN 28 DAYS 3 10 17 24 5.30 5.00 5.10 5.15 5.39 5.36 5.38 5.48 474 371 350 235 91 34 77 67 805 848 910 1,397 1 8 15 22 29 4.90 4,80 4.65 4.65 4.90 5.24 5.17 4.99 4.97 5.11 991 368 327 455 547 . 73 75 68 57 68 955 833 1,180 1,290 1,337 Nov. 5 n.a. n.a. 404. n.a. 1 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.) 2 Millions of dollars unless otherwise indicated. Note: Sec footnotes to Table 3 I TABLE 2: Details on Inventories DATE OFFERED AMOUNT (MIL. $) 10/28 10/28 10/28 10/27 10/27 10/26 10/26 10/26 10/21 10/19 10/14 10/15 25.0 75.0 125.0 30.0 12.0 125.0 75.0 25.0 50.0 70.0 20.0 100.0 DATE • OFFERED I RELEXSED 10/5 10/27 COUPON ISSUER Va N a t 1 1 Bank Trans Am Fin Pac G & E S.W. Elec Pwr UGI Corp M o States Tele Mo States Tele Consol Freightways Combust Eng Carolina P & L Carolina T & T Mfg Han Tr ORIGINAL RATING AND YIELD CALL PROTECTION 7.80 7.875 7.50 7.50 7.85 7.375 6.50 7.95 7.45 7.75 7.75 6.50 7.80 7.95 7.50 7.50 7.85 7.35 6.40 7.95 7.45 7.75 7.70 6.50 10 10 5 5 5 5 5 5 10 5 5 NR NR Aa Aa A Aaa Aaa Baa A A A ' NR ESTIMATED PROPORTION SOLD 95% 70% 40% yrs yrs yrs yrs yrs yrs yrs yrs yrs yrs yrs 80% 35% 20% 30% 98% 98% 90% 50% 50% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT ISSUER COUPON IN YIELD CALL PROT. PORTION RELEASED YIELD 100.0 6 3/8 Ohio Bell 6.375 + 11 Aaa 6 yrs 50% +• INVENTORIES 1 MUNICIPALS DATE 1971 - Oct. 1 8 15 22 29 759 872 816 897r 946 IN SYNDICATE 308 242 169 261 310 CORPORATES IN SYNDICATE I T 85 144 127 332 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 which is daily average of three days ended Wednesday. All other figures are as of Friday. TABLE 3: High Grade Bond Yields NEW CORPORATE Aaa1 DATE MOODY'S SEASONED CORPORATE Aaa2 U.S. GOVERNMENT 20-YEAR , CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS 4 - High Low 8.85 (12/5) 6.90 (2/21) 7.84 (12/26) 6.55) (1/12) 6.97 (12/26) 5.96 (1/24) 6.90 (12/18) 4.82 (1/28) - High Low 9.30 (6/19) 7.68 (12/18) 8.60 (7/3) " 7.48 (12/31) 7.55 (5/29) 6.17 (12/18) 7.12 (/29) 5.33 (12/11) - High Low 8.23 (5/12) 6.76 (1/29) 7.71(8/13) 7.06 (2/12) 6.51 (6/18) 5.69 (3/23) 7.53 7.30 7.22 7.17 7.11 7.46 7.44 7.42 7.37 7.31 6.01 5.95 5.90 5793 5.89p - Oct. 1 1 8 15 22 29 6.23 (6/24) T ' 4.97 (10/21) 1 5.24 5.17 4.99 4.97 5.11 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 1 22-24 years. 3 Weekly average of daily figures. 4 Thursday figures. The average rating of the 20 bonds used in this index falls midvay 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. e/ Preliminary TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS CORPORATE PERIOD 1971 1970 1 STATE AND LOCAL 2 1969 1971 1970 196S January February March 3,115 3,000 6,075 2,636 1,802 3,539 2,075 2,045 2,098 1 I | 2,705 1,839 2,144 1,340 1,214 1,555 1,262 987 538 April May June 4,007 3,271 4,375 3,170 3,909 2,748 2,076 2,530 | 1 3,389 1,907 2,135 2,008 1,647 996 1,085 1,801 1,110 737 July August September 4,064 2,850e 4,120e 2,768 2,274 2,518 2,478 1,427 2,427 1,928 1,871 2,050e 1,348 1,359 1,758 1,097 808 559 3,777 4,182 3,980 1,933 2,375 2,532 1,924 1,748 2,190 1,280 886 816 7,977 10,468 8,560 11,939 6,218 7,354 6,332 6,840 6,688 6,050 5,849 4,109 3,728 ' 4,465 5,862 2,787 3,648 2,464 2,982 I 18,445 27,005 38,944 13,572 19,904 26,744 12,738 18,587 October November December — 1st 2nd 3rd 4th 12,190 11,654 ll,034e Quarter Quarter Quarter Quarter 1st half Three quarters Year 23,844 34,878e 7,837 12,302 18,164 6,435 j 8,899 5 11,881 | 1 k 1 Securities and Exchange Commissirort estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH 1970 - III .. iv 1971 - I II Ille TOTAL 8,560 11,938 12,190 11,688 11,034 GROSS PROCEEDS BY TYPE OF ISSUE COMMON MEMO: BONDS AND ISSUES INCLUDED PUBLICLY PRIVATELY PFD. FOREIGN | CONVERTIBLE PLACED STOCK OFFERED 287 5,937 83 914 1,659 737 7,827 2,690 226 1 ,421 8,369 724 1 ,516 2,306 84 6,546 3,384 1 ,758 215 1,351 4,731 n.a. 4,516 1 ,787 772 GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY 2,314 3,169 3,794 3,130 1,839 2,714 3,406 3,197 2,910 2,556 868 1,346 1,606 896 2,362 2,663 4,020 3,594 4,753 4,277 445 371 693 282 838 1,300 1,033 1,687 391 683 532 1,332 587 1,675 273 405 218 1,622 350 390 1,367 1,489 1,897 1,192 1,215 1,870 1970 - Sept. Oct. Nov. Dec. 3,518 3,777 4,181 3,979 2,425 2,390 3,001 2,436 389 304 283 834 704 1,083 898 709 4 56 11 159 121 388 184 165 994 1,006 1,107 1,056 1,241 1,101 1,350 955 1971 - Jan. Feb. . Mar. 3,115 3,000 6,075 2,033 2,201 4,135 594 275 647 489 524 1,293 43 3 38 99 168 557 716 661 2,417 676 1,069 1,452 4,042 3,271 4,375 4,064 2,850 4,120 2,116 2,148 2,282 1,331 1,400 2,000 507 491 760 537 500 750 1,419 633 1,332 2,196 950 1,370 116 47 52 64 n.a. n.a. 384 255 712 197 300 275 1,135 588 1,206 529 485 82f 1,267 588 1,055 721 800 . 1,035 Apr. May June July e/ Aug. e/ Sept. l COMMUNICATIONS MFG. " OTHER ISSUERS 1 Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: Securities and Exchange Commission. Quarterly supplements are avail: able. ' ' ' • • - > TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 Oct. 1 thru Oct, 29, 1971 ISSUER TYPE2 AMOUNT (MILLIONS OF DOLLARS) 1 COUPON RATE OR MATURITY NET INTER1 EST COST MOODY'S RATING OFFERING YIELD Corporates Ramada Inn Gen'l Tel Co of the S.W. Phila Elec Co Ohio Bell Tel Co Ohio Bell Tel Co * Tenneco Inc Mohasco Industries, Inc Massmutual Mfcge & Realty Inv Florida Pwr Co Pacific Pwr & Light Co Gulf Pwr Co Trail Mobile Finance Co Ohio Power Co Consolidated Food Corp Coastal State Gas Producing Union Tank Car MfgJlanover Trust Carolina Tele & Telegraph Firestone Rubber Co Carolina Pwr & Light Co Houston Natural Gas Corp Borg-Warner Acceptance Corp Texfi Industries Inc FMC Illinois Pwr Co Illinois Pwr Co Portland Gen'l Elec Co Portland Gen'l Elec Co Kemperco, Inc DigitizedInternational for FRASER Harvester Credit Debs 1st mtg Com stk Notes Debs 1st mtg pipeline Com stk Debs 1st mtg 1st mtg Bonds Notes 1st mtg SF debs 1st mtg equip trst certf Debs Debs SF debs 1st mtg SF debs Debs Conv deb SF debs 1st mtg Com stk 1st Mtg Com stk Com stk Notes 60.0 40.0 50.2 50.0 100.0 1996 2001 "5.00 7.88 5.00 7.85 A 1978 2011 6.38 7.50 6.38 7.55 Aaa Aaa 100.0 21.1 50.0 50.0 35.0 21.0 25.0 40.0 50.0 50.0 1991 8.20 8.20 A 1991 2001 2001 2001 1978 6.75 7.38 8.00 7.50 7.50 6.38 7.38 7.75 6.25 7.60 8.00 7.50 7.50 25.0 100.0 20.0 100.0 70.0 32.0 30.0 25.0 75.0 35.0 21.2 20.0 20.5 22.5 60.0 1991 1979 2001 2001 2001 1991 1991 1996 2001 2001 7.75 6.50 7.75 7.30 7.75 7.88 7.88 4.75 7.50 7.60 , 7.75 6.50 7.70 7.37 7.70 7.92 7.88 4.75 7.50 7.60 2001 8.00 8.00 Baa 1976 7.00 6.95 -- — 1996 1991 ' -- Aa Baa Aa A A Aa A — 7.38 7.75 , A n.r A Aa A Baa -- A Aa TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 ISSUER \ TYPE2 AMOUNT (MILLIONS OF DOLLARS) MATURITY Oct. 1 thru Oct. 29. 1971 COUPON MOODY'S OFFERRATE-OR RATING ING NET INTERYIELD EST COST Corporate continued Combustion Engr Inc. Trans American Financial Corp Virginia National Bank Pacific Gas & Elec Co Southwestern Elec Pwr Co Consolidated Freightways, Inc. Mountain Bell Mountain Bell SF debs Debs Cap notes 1st mtg & ref Mtg SF debs Notes Debs 50.0 50.0 25.0 125.0 30.0 25.0 75.0 125.0 1996 . 1991 7.80 7.45 7.88 7.80 7.45 7.95 7.80 N.R. 2003 2001 1996 1977 2011 7.50 7.50 7.95 6.50 7,38 7.50 7.50 7.95 6.40 7.35 Aa Aa Baa Aaa Aaa —— • """ / TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 Oct. 1 thru Oct. 9Q ISSUER TYPE2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST OFFERING YIELD 1971\ MpODY'S RATING State and Local Buffalo, N. Y. Buffalo, N.Y. Kentucky Turnpike, Auth Kentucky Turnpike, Auth Minneapolis, Minn Minneapolis, Minn Minneapolis, Minn Maine Maine Massachusetts Port, Auth Massachusetts Port, Auth Chicago Public Bldg. Com, 111 Orlando, Utilities Comm, Fla Michigan, State of Dallas, Indp S/D Chartiers Valley Jt. Sch Bldg Auth, Pa Montgomery Co., Md Puerto Rico South Carolina New York Hawaii, State of Hawaii, State of Columbus, Ohio Michigan, State of New Orleans, La New Jersey Mtg Fin Agency 4.34 3.96 G.O. G.O. Rev. Rev. G.O. G.O. G.O. G.O. G.O. . Rev. Rev. Rev. Rev. G.O. G.O. 8.3 18.3 13.5 71.5 3.6 4.4 2.2 13.8 8.0 19.9 58.1 25.0 33.5 . 50.0 17.5 1972-1990 1972-1985 1975-1991 2001 1973-1981 1973-1981 1972-1991 1990-1991 1972-1991 1975-1998 2001 1973-1991 1973-1998 1972-2013 1972-1991 Rev G.O. G.O. G.O. G.O* Rev. Rev G.O. G.O. Airp Rev Rev 11.3 30.0 40.0 3.79 96.0 6.3 13.7 11.8 40.0 18.0 36.8 1972-1993 • 5.73 1972-2001 4.32 1973-1996 4.82 1972-1987 3.87 1972-2001 4.28 1976-1985 5.89 1996 5.89 1974-1998 4.61 4.07 1973-1991 5.30 1972-1981 4.53 2.80-4.90 2.80-4.40 4.00-5.90 6.20 2.90-4.75 3.00-4.75 2.90-4.75, 2.80-4.60 2.80-5.00 4.00-5.90 6.03 3.30-5.50 2.90-5.40 3.10-6.00 2.75-4.70 — 4.43 3.66 4.20 4.27 4.23 -- 4.96 4.85 -- 4.17 3.00 — 3.10-5.30 ' 2.70-4.90 4.30-5.40 6.10 3.20-5.00 2.90-4.60 3.40-5.45 3.10-4.50 •Aa Aa — Aaa Aaa Aaa Aaa Aaa --- . A-l Aa A Aa Baa-1 A-l Aa Aa --- Aa Aa Baa TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) , MATURITY Oct. 1, through Oct. 29, 1971 COUPON RATE OR MOODY'S OFFERNET INTERING RATING EST COST State and Local North Dakota G.O. 15.0 2.75-4.20 1973-1986 3.87 Rev. 20.0 Detroit, Mich 1972-2002 5.07 3.00-5.40 —— — Rev Port of New York Auth 100.0 2006 -Maryland G.O. 60.0 1974-1986 3.00-4.40 Rev. California, State Colleges 13.7 1972-1996 5.21 3.00-5.60 — Rev. 37.8 Sacramento MUD, Cal, 2001 5.13 Rev. Sacramento H U D , Cal, 12.2 1974-1990 5.13 3.15-4.75 Salt River Proj Agric Imp & Pwr,Dis Rev. 52.0 1974-2001 4.83 3.30-5.30 G.O & Ref -Albuquerque, New Mexico 24.6 1972-1983 2.90-4.10 Rev. Tulsa, Muni, Airport, Okla 5.1 1974-1986 6.58 Rev. Tulsa Muni,, Airport, Okla • 22.4 2006 6.58 / Rev. Penna State Public Sch Auth 15.7 1974-2011 3.30-5.38 5.21 Port of Seattle, Wash Rev. 22.3 1973-2001 5.35 3.30-5.80 Rev Penn Trafford S/D Auth, Pa 7.5 : 1994 ' 5.90 —— Rev Penn Trafford S/D Auth, Pa 6.9. 1972-1980 5.90 -— Rev. Penn Trafford S/D Auth, Pa 1.1 1983 5190 Rev Lucas Co, Ohio 11.1 1975-1992 6.34 4.25-6.00 Other Bonds Federal Land Bank 326.0 1974 5.85 5.85 Bonds Federal Land Bank 300.0 1977 6.35 6.35, Bonds, 6.60 Pwr bds Rights offering. Includes corporate and other security offerings' of $15 million and over; State and local security offerings of $10 million and over. In case of State and local government securities, G.O. denotes •'generaI obiigatic Kev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev.-S.l revenue boi>ds 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. — m us • Aa A A Aaa Aa Aa A-l -- Baa Baa A Baa Baa Baa • —-. --- Aaa 12 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) Oct. 29, 1971 APPROXIMATE DATE OF OFFERING Corporates Debs Debs Debs Bonds 1st mtg Debs 1st mtg Notes Debs Debs Comm stk Gen'l & ref mtge Gen'1 Telephone Co of Michigan Bonds Comm stk Penna Pwr & Light Co 1st mtg Consumers Power Co 1st mtg Consumers Pwr Co Baxter Laboratories Inc Debs 1st mtg Gulf States Utilities Co Bonds Jersey Central Pwr & Light Co 1st mtg Cincinnati Gas & Elec Co New York State Elec & Gas Corp 1st mtg Debs Central Telephone Co Notes South Central Bell Tele Co South Central Bell Telephone Cc Debs Debs W.R. Grace & Co 1st mtg Public Service Elec & Gas Co Conv debs Beneficial Standard Mtg Inv Debs • Honeywell Finance Inc. Conv debs International Paper Co SF debs Alcoa 1st mtg Gen'l Telephone Co Debs ITT Rayonier 1st mtg Delmarva Pwr & Light Co Debs " Pacific Lighting Service Co Englehard Mineral & Chemical Telex Corp Cenco Instrument Corp Ford Motor Credit Corp Dallas Pwr & Light Co Realty Income Trust Metropolitan Edison Co Beneficial Corp Beneficial Corp Alison Mtge & Inv Trust Detroit Edison Co Detroit Edison Co 60.0 25.0 30.0 200.0 30.0 25.0 15.0 50.0 75.0 25.0 60.0 90.0 18.0 35.0 60.0 60.0 55.0 35.0 25.0 60.0 50.0 15.0 75.0 100.0 100.0 80.0 15.0 50.0 60.0 150.0 25.0 50.0 35.0 30.0 Nov., Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Dec. 1 1 1 3 3 3 3 3 3 4 4 4 4 4 8 8 9 9 10 10 11 15 15 15 16 .17 13 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) ISSUER TYPE As of October 2 9 , AMOUNT (MILLIONS OF DOLLARS) 1971 APPROXIMATE DATE OF OFFERING State and Local 31 .5 G.O. Texas, State of Los Angeles Co, Flood Contr 19 .0 G.O. Dist, Calif . 26.0 G.O. Washington Sub, Sanit, Dist, Md Ref Imp Triborough Brdg & Tunnel Auth, 55 .2 Rev. N.Y. 50 .0 Rev Los Angeles DWAPS 100 .0 G.O. Ohio, State of 10 .3 G.O. & Rev. Akron, Ohio 20 .0 G.O. Chicago Park District 13,.0 G.O. Lawton, Okla 32,.0 Rev. ' Broward Co, Fla 10,.0 G.O. Guilford Co, N.C. 150.0 G.O. California 10.,0 Mtg.Rev. Louisville Riverfront Corp 25..0 Rev. Port of Portland, Ore. 45..0 G.O. Chicago City Sch Dist 26.,0 G.O. Essex Co, N.J. 10.,4 G.O. Wayne J.P. S/D N.J. 23.,5 G.O. Virginia, State of 25. 0 Rev. Alabama Highway Auth 28. 4 Rev Maryland Dept of Transp r 175. 0 New York State Housing Fin Agenc; G.0. 10. 0 Rev Los Angeles Comm 33. 1 G. 0. Philadelphia, Pa. 15. 0 G.O. Anne Arundel Co, Md 17. 0 G.O. Milwaukee, Wis 150. 0 G.O. California, State of 43. 0 G.O. New Jersey Housing Finance Ag. 50. 0 Rev. New York State Mtge Agency 60. 0 G.O. 1 Oregon, State of * 1 2 - Nov. 1 Nov. Nov. 2 3 3 Nov. Nov. 4 Nov. 4 Nov. 8 9 Nov. 9 Nov. Nov. 9 9 Nov. 9 Nov. 10 Nov. Nov. 10 Nov. 10 Nov. 11 Nov. 11 Nov. 16 Nov. 17 17 Nov. Nov. 17 17 Nov. Nov. 17 17 Nov. 30 Nov. Nov. Nov. Nov. 14 Dec. Included in table for first time. Includes corporate and other issues of 515 million and over; State and local Government issues of" $10 million and over. Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. 14 STOCK PRICES AND VOLUME STOCK PRICES13 N Y S E INDEX - D J . INDUSTRIALS TRADING V O L U M E ' AMEX 4 1969 - High Low 50.32 (5/14) 49.31 (7/29) 968.85 (5/14) 32.91 (1/13) 769.93 (12/17 25.02 (7/29) 16.5 (3/29) 8.6 (8/29) 8.0 (1/31) 3.6 (11/21) 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 (8/14) High Low 57.76 (4/28) 48.73 (1/4) 950.82 (4.28) 26.68 (4/28) 830.57 (1/4) 22.72 (1/4) 22.1 (2/12) 6.7 (2/12) 11.0 (8/13) 2.7 (8/13) 55.66 55.56 55.24 54.26 912.75 911.00 908.22 889.31 25.61 25.66 25.59 25.35 11.4 14.6 3.1 3.3 3.2 893.98 . 893.91 874.85 852.37 839.00 25.54 25.71 25.37 24.95 24.61 11.4 14.8 12.3 13.9 12.3 3.1 4.1 3.8 3.5 3.1 1971 Sept Oct. 3 10 17 24 54. 66 8 54.94 15 54.06 22 52.82 29 52.07 1 10.8 12.2 2.8 • Figures other than highs and lows are Fridays only. Highs and lows are for the year and are not necessarily for Fridays. NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange. Volume figures are daily averaged for the entire week, (millions of shares). Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or In.recent years, however abbreviated trading to the extent, and over the time Hours/ Days/ From Through; Day Week January 3, 1969 July 7, 1969 January 2, 1970 July 3, 1969 December 31, 1969 May fv 1970 3. 12/31/65=50 4. Average dollar value of shares listed. 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 25 15 TABLE 9: Security Credit END OF PERIOD CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 I BANKS 2 ~1 TOTAL CUSTOMERS 1 NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY BROKERS AND FREE CREDIT DEALERS 3 BALANCES Outstanding: 1970 Aug. Sept. Oct. Nov. Dec. 3,810 3,920 4,010 4,010 4,030 2,300 2,330 2,270 2,320 2,330 6,110 6,250 6,280 6,330 6,360 (4) (4) (4) (4) (4) 2,083 2,236 2,163 2,197 2,286 (4) (4) (4) (4) (4) 4,000 4,090 4,300 4,530 4,620 4,720 4,790 4,850 2,300 2,330 2,360 2,340 2,340 2,390 2,420 2,430 6,300 6,420 6,660 6,870 6,960 7,110 7,210 7,280 (4) (4) (4) 2,452 2,743 2,798 (4) (4) (4) (4) (-4) (4) v4) (4) Aug. Sept Oct. Nov. Dec. 10 110 90 10 30 -60 50 10 -60 140 30 50 30 171 153 -73 34 89 1971 -Jan Feb. Mar. Apr. May June July . Aug -30 90 210 230 90 100 70 -30 30 30 -20 -60 120 240 210 90 150 100 70 291 291 55 -138 -110 110 230 -10 1971 -Jan. Feb. Mar. Apr. May June July Aug. (4) (4) (4) 2,660 2,550 2,440 2,210 2,200 Change in Outstanding 1970 20 60 50 30 10 Margin debt, as reported by the New York Stock Exchange. Although margin debt until March 1968 included loans secured by-U.S. governments, the amount of such loans included is thought to have been small. "Bank loans to others than brokers and dealers for purchasing or carrying sectirities other than U.S. governments." The difference between customers' net debit balances and customers' net free credit balances, this figure represents the net credit extended by brokers and dealers to the nonfinancial public. NOTE: With the exception of bank loan data, figures are supplied by the New York Stock Exchange and are end of month data. Bank loans are for weekly reporting large commercial banks. Broker data includes loans for regulated securities; bank data includes loans for the purpose of purchasing or carrying any security, whether ite^ies*" ifi s°c^nti nued. r.hanees in series. TABLE 10: Savings Flows at Nonbank Depositary Intermediaries \ ($ millions) DATE MUTUAL SAVINGS BANKS NET REGULAR DEPOSITS 3 NEW ANNUAL MONEY 2 GROWTH NET RATE 1 FLOW V TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW NET NEW. MONEY2 Not Seasonally Adjusted 4,203 2,549 4,466 1968 1969 1970 SAVINGS & LOAN ASSOCIATIONS NET SHARE CAPITAL NEW . ANNUAL MONEY2 NET GROWTH FLOW RATE 1 7.0 4.0 6.7 1970 - July August September 297 176 575 —— 1971 - July August September g/ 416 300 775 -— -— — -- 6.0 3.2 8.2 1,143 -763 936 7,432 4,200 11,173 174 81 x -8 543 550 1,827 -- 276 195 125 1,554 1,106 2,610 -- . 2,738 -1,003 5,295 11,635 6,749 15,639 485 511 575 840 726 2,402 1,463 1,050 1,100 1,970 1,406 3,385 --- -- 6.3 3.4 7.7 • 3,881 -1,766 6,231 659 592 567 — 1,714 ~~ 1,245 1,225 Seasonally Adjusted 1971 - April May June July August September £/ . 1,176 795 818 566 425 625 19.0 12.7 12.9 8.8 6.6 9.6 --—— -- . 2,996 1,996 2,152 2,601 1,282 2,099 23.1 15.1 16.1 19.2 9.3 15.1 -- — --- 4,172 2,791 2,970 3,167 1,707 2,724 21.8 14.3 15.1 15.9 8.4 13.4 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 S&Ls are for insured associations only, which represent 96% 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 Banks and Federal Home Loan Bank Board. -— — TABLE 11: Mortgage Commitments at Selected Thrift Institutions DATE TOTAL OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS SAVINGS & BANKS LOAN (N.Y. STATE) ASSOCIATIONS | I TOTAL 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars, Ses sonally Adjusted)—/ 7 0 - Aug. Sept. Oct. Nov. Dec. 9.8 8.9 9.3 9.6 10.1 >71 - Jan. Feb, Mar. Apr. May June July Aug. 10.4 11.2 12.6 13.8 15.3 16.1 16.3 16.4 1 ' 6.8 7.1 7.5 7.8 8el 2.0 1.8 1.8 1.8 2.0 .21 .25 .30 .35 .51 8.3 8.9 10.1 11.1 12.2 13.0 13.2 13.3 2.1 2.3 2.5 2.8 3.1 3.1 3.1 3.1 .25 .80 1.36 1.30 1.56 .77 .24 .13 , .29 .36 .37 .34 .28 .20 .60 " 1.16 1.01 1,21 .72 . 2 8 r/ .08 Based on data from Federal Home Loan Bank Board and Savings Banks Associations of New York State. Net 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. Mutual Savings Banks and total data include building loans beginning August 1 9 6 7 . -.08 -.11 -.07 .01 .23 .05 .20 .20 .29 .34 .05 .02 .05 18 TABLE 12: Net Change in Mortgage Holdings DATE TOTAL INCLUDING FNMA-GNMA TOTAL 1 FINANCIAL INSTITUTIONS I MUTUAL SAVINGS & COMMERCIAL jj SAVINGS LOAN BANKS j BANKS ASSOC. LIFE INSURANCE COMPANIES FNMA-GNMA Not Seasonally Adlusted 1967 1968 1969 1970 2/ 20,016 23,781 24,189 21,822 18,219 21,273 19,814 16,913 1970 - July Aug. Sept. 1971 - June July Aug. Sept. 2,063r 2,072 2,314 4,544 4,264 4,556 n.a. " 1,600 1,673 1,952 4,411 3,948 3,930 1970 - Aug. Sept. Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May June July Aug Sept l,919r 2,192 2,128 2,049 2,604 1,860 2,097 2,988 2,939 3,280 4,177 4,259 4,404r 1 l,511r 1,828 1,808 1,820 2,504 1,893 2,184 2,996 2,018 3,273 3,972 3,898 3,770 r n.a. 4,639 6,677 5,404 2,462 3,153 2,787 2,682 1,845 7,520 9,350 9,676 10,288 200 160 300 182 500 216 1,300 435 1,000 389 1,000 415 1,100 Seasonally Adlusted 1,079 1,114 1,123 2,693 2,511 2,391 2,088 268 329 295 224 312 383 445 688 653 840 1,197 969 972 922 175 245 138 176 250 175 217 380 283 313 413 373 410 n.a. 983 1,104 1,175 1,289 1,710 1,311 1,425 1,774 2,044 2,095 2,339 2,484 2,2S8 r 2,069 2,907 2,459 2,052 2,318 161r 77r 113 -17 48 124 85 151 200 131 232 24 97 154 38 25 23 72 130 n.a. 1,797 2,508 4,375 4,909 463 399 362 133 316 626 n#a. 408 364 320 229 100 -33 -87 -8 -79 7 205 361 634 n.a. 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 84 per cent of the net increase estimated for all holders in 1970. 19 TABLE 13: Net Increases in Mortgage Debt Outstanding 1 Billions of dollars, SAAR QUARTER TOTAL RESIDENTIAL 3 1- to 4FAMILY MULTIFAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 1966 - II IV 18.6 15.1 10.9 9.1 8.3 7.0 2.6 2.1 5.5 4.1 8.1 6.2 2.2 1.8 1967 - I II III IV 15.9 20.7 26.6 27.3 10.3 13,9 19.2 19.8 7.0 10.5 15.3 16.0 3.3 3.4 3.9 3.8 3.9 5.0 4.9 4.8 7.2 8.3 8.8 8.6 1.8 1.8 2.5 2.8 1968 - I II III IV 27.7 26.2 26.0 29.6 19.0 18.2 17.7 20.2 15.8 15.0 14.1 16.4 3.1 3.2 3.4 3.8 6.4 5.9 6.5 7.5 9.6 9.0 10.1 11.3 2.3 2.2 1.8 1.8 1969 - I II III IV 31.3 28.9 26.5 25.1 25.0 21.5 19.3 18.3 18.6 16.9 14.6 13.0 4.4 4.7 4.7 5.3 6.2 5.2 5.3 5.4 10.6 9.9 10.1 10.7 2.2 2.2 1.8 1.4 1970 - I II III IV 20.2 22.8 29.5 31.6 13.8 16.9 22.1 22.5 8.8 11.5 15.8 16.1 5.0 5.4 6.3 6.4 4.9 4.3 5.2 6.9 9.9 9-7 11.5 13.4 1971 - Ip up 36.3 47.6 25.9 36.4 17.7 26.2 8.2 10.2 8.1 8.9 16.3 19.1 1 2 3 , 1.5 1.5 2.1 2.1 2.2 2.3 Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations and extrapolations, where required, estimated mainly by Federal Reserve. May differ "somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family and multifamily mortgage debt combined. TABLE 14: FNMA Weekly "Auction" R e s e t s WEEK ENDED COMMITMENTS IN $ MILLIONS ACCEPTED TOTAL 901-YEARN TOTAL 6OFFERED MONTH & OVER DAY IMPLICIT YIELD 2 (per cent) 90DAY 6MONTH 1-YEAR & OVER 1971 - June 1 14 28 322.4 664.4 539.3 146.6 191.2 262.2 77.1 133.7 191.8 57.8 47.3 60.3 11.6 10.2 10.4 8.05 7.91 7.92 8.18 8.15 8.22 8.16 8.22 8.28 July 12 26 606.0 686.2 241.1 183.4 161.8 183.4 58.2 21.1 7.98 8.07 8.23 8.31 Aug. 25 634.6 153.5 153.5 -- -- 7.97 -- -- Sept. 7 20 445.2 437.5 18,8.6 193.0 188.6 193.0 -- —— 7.88 7.86 —— 4 18 365.1 219.8 194.8 103.6 194.8 . 103.6— - - 7.85 / 7.83— Oct. 1 . -- \ Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments. Bids accepted by FNMA are for delivery at the seller's option, and at any time within the specified period. Bids on proposed homes relate to construction not yet started on which mortgages may be delivered only after completion and occupancy. 1 For ''proposed construction" of new homes only. 2 Average secondary market yield after allowance for commitment fee and required purchase and holding of FNMA stock, assuming prepayment of 15 years for 30-year Government-underwritten mortgages. Yields shown arc gross, before deduction of 3 8 basis points fee paid by investors to servicers. 3 4-month commitment basis . 21 TABLE 15: Private Housing Starts and Permits STARTS DATE SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE TOTAL BUILDING PERMITS (SEASONALLY ADJUSTED , ANNUAL RATE)2 UNADJUSTED TYP E OF FINANCING FHA VA OTHER ) - Sept. Oct. Nov. Dec. 1 ,509 1 ,583 1 ,693 2 ,054 881 890 934 1 ,240 627 693 759 814 130..9 140..9 126..9 121,.4 34.3 40.4 33.7 63.2 5 .3 5 .8 5,.5 5..7 91.3 94.7 87.2 52.5 1,388 1,523 1,487 1,768 . - Jan. Feb. Mar. Apr. May. June July r/ Aug. r/ Sept. £/ 1 ,725 1:,754 1,,959 1:,912 1.,975 2,,000 2,,229 2 j,235 1.,958 946 985 1:,048 1 ,098 1;,124 1,,177 1 ,187 1,,208 1.,182 779 769 911 814 851 823 1,042 1,027 776 110..6 102.,2 167. 9 201. 1 198. 5 193. 8 194.,3 202.,2 170. 4 32.2 27.3 33.4 44.6 40.7 46.1 42.9 45.8 4,.6 4..7 6..9 8. 5 8. 4 9. 3 9. 2 9..4 . 8. 7 72.8 68.4 127.6 148.0 149.4 137.8 142.2 147.0 1,635 1,563 1,627 1,638 1,927 1,849 2,052 2,006 1,967 1 2 J . Total starts are Census estimates including farm for both permit-issuing and non-issuing areas. A dwelling unit is started when 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 mortgages. As reported by FHA and VA, a unit is started when a field office receives the first compliance inspection report, which is made before footings are poured in some cases but normally after the foundations have been completed. Other starts are derived as a residual, although total and FHA and VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgage.s. Building permits are for 13,000, or all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per month, as well as other differences in timing and coverage. 22 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES DATE 30-year 2 CONVENTIONAL MORTGAGES 3 NEW Aaa CORPORATE BONDS 4 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 6 -.13 -.40 8.75 6.91 1.08 -.13 8.60 8.30 -.10 -.74 9.11 7.80 .99 .01 7.97 7.32 7.95 7.55 .28 -.19 8.01 7.24 .40 -.36 7.37 7.75 7.89 7.55 7.65 7.70 .18 -.10 -.19 7.57 8.01 7.90 -.20 -.26 -.01 7.97 7.92 7.84 7.80 7.85 7.85 -.17 -.07 .01 7.96 7.65 7.44 .01 .27 .40 1969 - High Low 8.62 7.99 8.35 7.55 1970 - High Low 9.29 8.40 1971 - High Low 1971 - Apr. May June July Aug. Sept. SPREAD BETWEEN YIELDS ON C0NV. & FHA MORT^ GAGES 5 - Neither mortgage nor bond yields include allowance for servicing costs which are much higher for mortgages than for bonds. Generally, bonds pay "Interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the table. ^ Based on FHA-field-office opinions about average bid prices in the private secondary market for new-home mortgages for immediate delivery. Data shown are for 30-year mortgages with minimum downpayments, ajid weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 15 years for 30-year mortgages. Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities. See note for Table 1. Yield spread equals conventional mortgage rate less FHA secondary market yield. Yield spread equals FHA secondary market yield less new Aaa corporate bond yield. • V'l \ 23 TABLE 17: Conventional Mortgage Terms DATE NEW HOMES CON- FEES & TRACT CHARGES EFFEC- MATURITY RATE (PER TIVE (YEARS) (PER CENT) RATE CENT) 2 3 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 (PER CENT) RATE (YEARS) (PER CENT) CENT) 2 3 LOAN AMT. ($000) 4 1970 Sept. Oct. Nov. Dec. 8.31 8.33 8.26 8.20 1.03 1.05 0.99 1.07 8.48 8.51 8,43 8.38 25.2 25.1 25.3 25.8 8.03 7.74 7.52 7.37 7.36 7.38 7.51 7.60 7.66 0.92 1.00 0.83 0.73 0.71 0.74 0.90 0,84 0.97 8.18 7.91 7.66 7.49 7.47 7.50 7.66 7.74 7.82 25.8 26.2 25.9 26.3 26.1 26.3 26.3 26.2 25.9 72.7 25.3 72.4 24.8 72.1 . 25.2 25.8 73.8 8.27 8.20 8.18 8.12 0.88 0.88 0.85 0.85 8.42 8.35 8.32 8.26 22.8 22.8 22.7 23.3 . 71.7 71.5 71.5 71.9 7.94 7.67 7.47 7.34 7.33 7.38 7.50 7.58 7.63 0.82 0.79 0.77 0.75 0.71 0.74 0.75 0.76 0.78 8.08 7.80 7.60 7.47 7.45 7.50 7.63 7.71 7.76 23.5 24.0 24.1 24.2 24.0 24.3 24.2 24.5 24.2 72.5 73.1 73.5 73.6 73.2 73.9 74.5 74.2 74.5 21.0 20.5 21.1 21.7 1971 Jan. Feb. Mar. Apr. May June July Aug. Sept. 1. 73.3 73.9 73.7 73.6 74.0 73.7 74.5 73.9 75.1 26.4 26.2 26.0 26.2 26.7 27.2 27.1 26.5 26.1 22.0 ' 22.5 23.0 23.1 23.3 28.3 23.2 23.5 22.6 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 niortgages 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 percent^e 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