Full text of H.16 Capital Market Developments : November 20, 1972
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: V i UL'ssjt *Ufc.it.»si L.5.8 Confidential (F.R.) DECONTROLLED AFTER SIX MOliTHS : CAPITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. • w^^f'20^1972 T ^ INDEX D e v e l o p m e n t s in the Corporate and Municipal Bond Markets Capital Market Y i e l d s Capital Market Volume Stock Market Mortgage Market SYMBOLS: e Estimate p Preliminary r n.a. Revised Not a v a i l a b l e TABLE 1: Yields, Volume and Reception CORPORATE BOND MARKET WEEK ENDING: 1972 Oct. 6 13 20 27 Nov. 3 10 17 24 WEEK ENDING: YIELDS MOODY'S NEW ISSUE SEASONED Aaa . PTlLITf 1 7.44 7.23 7.48 7.22 7.30 7.21 7.34 7.19 7.28 7.12 n.a. 7.18 7.16 7.12 n.a. YIELDS BOND BUYER MOODY'S NNEW ISSUE SEASONED 20 Aaa BOND INDEX GROSS OFFERINGS 433 171 564 395 120 125 170 340e PER CENT SOLD BY END OF WEEK , 88 69 80 49 BONDS SCHEDULED WITHIN 28 DAYS n.a. n. a . 100 75 79 MUNICIPAL BOND MARKET VOLUME7™ PER CENT BONDS SCHEDULED GROSS SOLD BY END OF WEEK WITHIN 28 DAYS OFFERINGS 1972 - O c t . 6 13 20 27 5.05 5.00 5.05 5.00 5.22 5.16 5.23 5.13 382 707 474 334 98 82 66 75 993 690 749 679 Nov. 3 10 17 24 4.90 5.00 4.90 n. a. 5.04 5.10 5.01 340 331 457 344e 71 39 85 654 1,548 1,431 New s e r i e s d e r i v e d by a d j u s t i n g t o a Aaa u t i l i t y b a s i s , new i s s u e s of p u b l i c l y - o f f e r e d c o r p o r a t e bonds w i t h c a l l p r o t e c t i o n , r a t e d A, Aa, o r Aaa by Moody's I n v e s t o r s S e r v i c e ( e x c e p t s e r i a l and c o n v e r t i b l e i s s u e s , o f f e r i n g s of n a t u r a l gas p i p e l i n e and f o r e i g n companies, and bonds g u a r a n t e e d by t h e F e d e r a l Government ) . For a d d i t i o n a l d e t a i l s and back d a t a , s e e t h e September 1972 i s s u e of t h e F e d e r a l Reserve B u l l e t i n . The Aaa c o r p o r a t e y i e l d s e r i e s p r e v i o u s l y p u b l i s h e d i n t h e L . 5 . 8 has been d i s c o n tinued. 2 M i l l i o n s of d o l l a r s u n l e s s o t h e r w i s e i n d i c a t e d . NOTE: See f o o t n o t e s t o Table 3. TABLE 2: Details on Inventories DATE OFFERED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND ISSUER COUPON YIELD CALL PROTECTION AMOUNT (MIL. $) 11/14 11/14 50.0 25.0 DATE OFFERED | RELEXSED • 7 1/4 7 1/2 F l a Pwr La Pwr & L t . 7.17 7.32 Aa ESTIMATED PROPORTION SOLD 5 yrs CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND AMOUNT ISSUER COUPON YIELD IN YIELD CALL PROT. 40% ESTIMATED PRO- NONE INVENTORIES ' MUNICIPALS BLUE LIST | IN SYNDICATE DATE 1972 - O c t . 20 27 Nov. 835 892 193 149 CORPORATES IN SYNDICATE 145 235 3 963 173 0 10 917 254 17 126 947 36 N.C. - No c a l l p r o t e c t i o n . 1 A l l f i g u r e s in m i l l i o n s of d o l l a r s . Blue L i s t i s d a i l y average f o r veck ended F r i d a y , e x c e p t f o r l a t e s t hreek v h i c h i s d a i l y a v e r a g e of t h r e e days endvd Wednesday. A l l o t h e r f i g u r e s , a r e as of F r i d a y . TABLE 3: High Grade Bond Yields 1970 - High Low NEW ISSUE Aaa UTILITY 9.43 (6/19) 7.72 (12/11) 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 / 2 9 ) 5.33 (12/11) 8.26 (7/30) 7.02 (2/5) 7.71 (8/13) 7.06 (2/12) 6.51 (6/18) 5.69 (3/23) 6.23 (6/23) 4.97 (10/21) 7.60 (4/21) 7.08 (3/10) 7.36 ( 4 / 2 8 ) 7.12 (11/17) 6.19 (4/14) 5.74 (11/17) 5.54 (4/13) 4.99 (1/13) 1972 - O c t . 6 13 20 27 7.44 7.48 7.30 7.34 7.23 7.22 7.21 7.19 6.07 6.02 6.00 5.96 5.22 5.16 5.23 5.13 Nov. 3 10 17 7.28 7.18 7.16 7.12 5.89 5.80 5.74 5.04 5.10 5.01 1 - — 7.12 New i s s u e Aaa u t i l i t y , w i t h c a l l p r o t e c t i o n , a d j u s t e d ( a s d e s c r i b e d i n f o o t n o t e 1 of T a b l e 1) t o a Aaa b a s i s . 2 Weekly a v e r a g e of d a i l y f i g u r e s . Average t e r m of bonds i n c l u d e d i s 22-24 y e a r s . 3 Weekly a v e r a g e of d a i l y f i g u r e s . T h u r s d a y f i g u r e s . The a v e r a g e r a t i n g of t h e 20 bonds used i n t h i s i n d e x 4 f a l l s midway between t h e f o u r top g r o u ps a s c l a s s i f i e d by Moody's I n vestors Service. N o t e - - H i g h s and lows a r e f o r i n d i v i d u a l s e r i e s and may be on d i f f e r e n t d a t e s for d i f f e r e n t series. T A B L E 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS STATE AND LOCAL 2 1 CORPORATE PERIOD 1972 1971 2 1 ,776 ,002 2 ,237 2 ,732 1 ,851 2 ,258 1 ,340 1 ,214 1 ,555 2 1 ,988 ,002 2, 2 6 0 1 ,891 2 ,167 2 ,013 1 ,647 996 1 ,085 1,800 i:, 9 5 1 1 ;,693 1 ,989 1 ,903 2 :,098 1 ,348 1 ,359 1:,758 1, 1:,728 2,,264 2, ,068 1.,924 1;,748 2.,190 7.,977 10,,468 8, ,560 11, ,939 6, 015 6 , 250 5 , 444 6.,841 6,,081 5, ,990 6, ,060 4 ; ,109 3. ,728 ,465 5, ,862 18, ,445 27, ,005 3 8 , ,944 12, 265 17, 709 12, ,912 18, 902 24, 962 7, ,837 12, ,302 18, 164 1972 1971 1970 January February March 3 ,205 3 ,369 3 ,229 3 ,115 3 ,000 6 ,075 2 ,636 1 ,802 3 ,539 April May June 3 ,275 3 ,598 4 ,3.41 4 ,042 3 ,300 4 ,375 3 ,170 3 ,909 3 ,389 July August September 3 ,582 3 ,013 2 :,750 4 ,147 2 ,532 3 ,768 2 ,768 2 ,274 3 ,518 October November December 3,,500 3.,387 3 ,704 3 i,673 3.,777 4;,182 3,,980 9.,803 11 =,214 9, 345 12 : ,190 11.,688 10, ,447 10, ,764 21, ,017 30, 362 23, ,844 3 4 , ,325 45, 089 — 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three q u a r t e r s Year V 2 1 1 I 1 : 1 ! ! 1970 S e c u r i t i e s and Exchange Commission e s t i m a t e s of g r o s s p r o c e e d s . I n v e s t m e n t Bankers A s s o c i a t i o n of America e s t i m a t e s of p r i n c i p a l amounts. TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH GROSS PROCEEDS BY TYPE OF ISSUE COMMON BONDS AND MEMO: TOTAL PUBLICLY PRIVATELY PFD. ISSUES INCLUDED MFG. OFFERED PLACED STOCK FOREIGN | CONVERTIBLE GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS1 1971 - I I 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 1,351 652 767 3,130 2,202 2,543 2,910 2,651 3,041 896 2,263 1,053 4,753 3,331 4,164 1972 - I II III 9,805 11,214 9,345 5,361 4.634 4,192 1,593 2,781 1,893 2,851 3,798 3,259 74 245 68 511 449 838 1,525 2,109 1,749 2,261 3,495 2,701 1,476 1,369 856 4,541 4,240 4,038 3,781 1,966 615 1,200 18 293 1,141 1,084 281 1,275 Oct. Nov. Dec. 3,387 3,704 3,673 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 1972 - J a n . Feb. Mar. 3,205 3,369 3,229 1,767 1,907 1,677 604 412 577 834 1,041 976 59 12 3 195 83 233 392 529 604 533 988 740 752 498 227 1,529 1,354 1,658 3,275 3,598 4,341 3,582 3,013 2,750 3,500 1,622 1,676 1,336 1,807 1,523 862 1,650 789 774 1,218 657 431 805 650 864 1,148 1,786 1,118 1,058 1,083 1,200 15 100 130 3 13 52. n. a. 92 226 131 450 183 205 150 581 761 767 . 574 559 616 350 1,219 738 1,538 798 635 1,268 1,200 178 391 800 586 237 33 360 1,297 1,708 1,235 1,624 1,581 833 1,590 1971 - S e p t . xj Apr. May June J u l y xj Aug. rl Sept. O c t . q/ 1 O t h e r i s s u e r s a r e e x t r a c t i v e , r a i l r o a d and o t h e r t r a n s p o r t a t i o n , r e a l e s t a t e and f i n a n c e , and commercial and o t h e r . S o u r c e : S e c u r i t i e s and Exchange Commission. Q u a r t e r l y s u p p l e m e n t s a r e a v a i l able. TABLE 6: Large Long-term Public Security I s s u e s for New Capital (Other than U.S. T r e a s u r y ) 1 Nov. 6 t h r o u g h Nov. 17, 1972 ISSUER Corporates F i r s t N a t ' 1 C i t y Corp A r i z o n a Pub Svc L o u i s i a n s Pwr & Lt Texas O i l & Gas F l a Pwr Corp S o u t h e r n Co Delmarva Pwr & L t F l a Pwr & Lt Lomas N e t t l e t o n Mortgage Commonwealth E d i s o n T h i r d N a t i o n a l Corp G r e a t Am mtg Texas I n d u s t r i e s TYPE 2 Bonds Com s t k Bonds 1 s t mtg Bonds Cm s t Cm s t Pref Bene i n t Pref Bonds Deb Debs w/w AMOUNT (MILLIONS OF DOLLARS) 125.0 23.5 25.0 30.0 50.0 172.3 21.9 60.7 41.9 52.4 25.0 25.0 15.0 MATURITY COUPON RATE OR NET INTEREST COST OFFERING YIELD 1980 6.63 6.67 2002 1992 2002 7 1/2 7 3/8 7 1/4 7.35 7.38 7.17 — - - - - - - — 7.27 7.20 7.48 7 1/2 7.55 • 7 3/4 7.30 7.56 7.55 7.75 - - —— 2002 1979 1992 MOODY1S RATING A ' A Aa T A B L E 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 ! ISSUER S t a t e and L o c a l Penna, S t a t e of C o l l i e r County-Wide S/D, F l a . C o n n e c t i c u t , S t a t e of Jackson, Miss. Pennsylvania Ohio Kent S t a t e U n i v . , Ohio Kent S t a t e U n i v . , Ohio Denver C i t y a,nd Co. , C o l o . , U n i v e r s i t y of C a l i f Columbus, Ohio T y l e r , Texas H a r t f o r d , Conn H a r t f o r d , Conn. D a l l a s ISD, Texas I n d u s . Dev. Bd. of C i t y of F a i r f i e l d , Ala. I n d u s . Dev. Bd. of C i t y of F i a r f i e l d , Ala. TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST I | OFFER! INC J YIELD G.O. G.O. G.O. G.O. G.O. G.O. G.O. G.O. G. 0 . Rev. G.O. G.O. G.O. G.O. G.O. 145.0 12.6 98.0 16.4 145.0 100.0 3.5 7.8 28.0 20.0 26.2 10.0 5.0 20.0 33.7 1975-2002 1974-1991 1975-1981 1973-1992 1975-2002 1973-1992 1974-1988 2003 1973-1984 1981-2002 1974-2008 1974-1992 1973-2012 1973-1992 1973-1997 4.82 5.03 3.97 4.65 4.82 4.94 5.31 4.20 5.30 4.95 4.60 4.98 4.58 4.52 3.40-5.20 3.40-5.20 3.35-4.10 3.00-5.20 3.40-5.20 2.85-5.00 3.50-5.00 5.40 2.85-4.40 ' 4.40-5.35 3.40-5.30 3.15-4.90 3.00-5.15 2.90-5,00 3.00-5.00 Rev. 125.0 1974-1987 —— 3.30-4.90 Rev. 15.0 1 1997 - - MOODY'S RATING 5.20 * ' Rights o f f e r i n g . 1 I n c l u d e s c o r p o r a t e and o t h e r s e c u r i t y o f f e r i n g s of $15 m i l l i o n and o v e r ; S t a t e and l o c a l s e c u r i t y o f f e r i n g s of $10 m i l l i o n and o v e r . 2 In c a s e of S t a t e and l o c a l government s e c u r i t i e s , G.O. d e n o t e s g e n e r a l o b l i g a t i o n ; ' ( e v . - U t . , revenue o b l i g a t i o n s s e c u r e d o n l y by income from p u b l i c u t i l i t i e s ; R e v . - Q . - U t . , revenue bonds s e c u r e d only by income from q u a s i - u t i 1 i t i v s ; R e v . - S . T . , r e v e n u e bonds s e c u r e d by r e v e n u e from s p e c i f i c t a x e s o n l y ; R e v . - K e n t . , revenue bonds s e c u r e d s o l e l y by l e a s e payments. 3 I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and Development i s s u e s and n o n - q u a r a n t e e d i s s u e s by F e d e r a l A g e n c i e s . A-l Baa-1 Aaa A-l A-l Aaa A A Aa A-l Aa . A-l Aaa Aa Aa Aa Aa 10 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. T r e a s u r y ) 1 (continued) A s o f N o v 17> ISSUER F i r s t Term N a t ' 1 . Corp Michigan B e l l T e l e New England Pwr Tenneco O f f s h o r e A p p a l a c h a i n Pwr South C a r o l i n a E l e c t & Gas D e t r o i t Edison Cameron F i n a n c i a l Corp Wells Fargo & Co. American T e l e & T e l e Kentucky U t i l i t i e s Duke Pwr P a c i f i c Gas & E l e c t Tampa E l e c t Arkansas Pwr & L t . Arkansas Pwr & L t . San Diego Gas & E l e c t U n i t e d T e l e of F l a . Maine Yankee Atomic Maine Yankee Atomic Gen'l Public U t i l i t i e s G e o r g i a Pwr Union E l e c t r i c Duquesne L i g h t Duquesne L i g h t N a t i o n a l R u r a l U t i l . Coop F i n . F i r s t Va. B a n k s h a r e s C o r p . Englehard M i n e r a l s & Chem. Co. Z a p a t a E x p l o r a t i o n Co. TYPE Debs Bonds Pref stk Bonds Bonds Com s t k Pref s t k Debs Bonds Bonds Bonds Bonds Pref stk C"?m s t k Bonds Pref stk Com s t k 1 s t mtge Bonds Pref stk Com s t k Bonds Pref stk Bonds Com s t k — 1 s t mtge Bonds Conv debs Conv debs 1 9 7 2 AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING 25.0 125.0 15.0 95.0 70.0 25.0 75.0 40.0 75.0 500.0 35.5 75.0 50.0 15.0 15.0 20.0 27.0 15.0 15.0 15.0 30.0 150.0 55.0 40.0 35:0 50.0 25.0 50.0 25.0 Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. INDEF INDEF 19 20 21 21 28 29 29 29 30 30 4 5 5 5 6 6 6 7 7 7 7 12 13 14 14 11 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. T r e a s u r y ) 1 ISSUER S t a t e and L o c a l R i v e r s i d e , C a l i f C i v i c Auth. *Michigan New York S t a t e Housing F i n a n . Agency j Miami, F l a . *Memphis, Tenn. I P h i l a d e l p h i a , Pa. j * H a r f o r d C o . , Md. I *Tucson, Ariz j *Mass H e a l t h & Ed. F a c i l . Auth. , U n i v e r s i t y of P u e r t o Rico Anne Arundel C o . , Md. Nassau C o . , N. Y. Indianapolis, Ind., Airport ' Authority j *Guam "Pwr Auth. ! G r e a t Chicago Metro S a n i t . ! D i s t . 111. . B a l t i m o r e , Md. F l a t Rock, Mich. D a l l a s , Texas H a r t f o r d , Conn. P r i n c e Georges C o . , Md. H.A.A. New York C i t y *Los Angeles P a r k i n g Auth, C a l i f U n i v e r s i t y , Texas Los Angeles DWAP Monroe C o . , Mich. TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING Rev. G.O. 15 . 1 50 . 0 Nov. Nov. 21 21 G.O. G.O. Rev. G.O. G.O. Rev. G.O. Rev. G.O. G.O. 177 . 0 12 . 6 50 . 0 49 . 9 10.0 28 . 5 12 . 5 28,.0 13,.0 13,.0 Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. 21 22 28 28 28 28 28 28 29 29 G.O. Rev. 10..0 25.,0 Nov. Nov. 29 30 Rev. Rev. I n d Dev. Rev. G.O. G.O. G.O. Bonds G.O. R e f . Rev. Rev. Rev. Rev. 20. 0 28. 0 25. 0 28. 5 25. 0 32. 5 282. 5 300. 0 26.9 17. 0 116.2 57.0 Nov. 30 Nov. Nov. Nov. Nov. 5 Dee. 6 Dec. Dec. 6 Dec. 7 Dec. 7 Dec. 13 INDEF I n c l u d e d in t a b l e f o r f i r s t I n c l u d e s c o r p o r a t e and o t h e r i s s u e s of 515 m i l l i o n and o v e r ; S t a t e and l o c a l Government i s s u e s of S10 m i l l i o n and o v e r . I n c l u d e s f o r e i g n government and I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n and Development i s s u e s and n o n - g u a r a n t e e d i s s u e s of F e d e r a l A g e n c i e s . 12 Table 8 STOCK PRICES AND VOLUME STOCK P R I C E S 1 - TRADING VOLUME 2 - DATE NYSE INDEX 3 - D J . INDUSTRIALS AMEX 4- AMEX NYSE 1970 - High Low 52.36 (1/5) 37.69 (5/26) 842.00(12/29) 27.02 (1/8) 631.16 ( 5 / 2 6 ) 19.36 ( 5 / 2 7 ) 18.5 (12/4) 7.8 (8/14) 7.1 (1/2) 1.8 (8/14) 1971 - High Low 57.76 (4/28) 48.73 (1/4) 950.82 ( 4 / 2 8 ) 2 6 . 6 8 ( 4 / 2 8 ) 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 63.25 (11/17) 1005.57(11/17)!28.53 (4/14) 25.61 (1/3) 889.30 (1/3) 56.23 (1/3) 21.8 (11/10) 11.2 (9/8) 7.4 (3/10) 2.6 (9/8) 3.1 2.6 2.9 3.3 1972 - O c t . 6 13 20 27 60.03 59.10 59.77 60.60 945.36 930.46 942.81 946.42 25.95 25.80 25.72 25.89 15.3 11.8 14.2 16.6 Nov. 3 10 17 62.52 62.33 63.25 984.12 995.26 L005.57 26.14 26.14 26.15 18.4 21.8 20.1 ' 4.0 4.3 4.2 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. (millions of shares). Volume figures are daily averaged for the entire week, 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 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 TABLE 9: Security Credit END OF PERIOE CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 | BANKS 2 | TOTAL CUSTOMERS' NET DEBIT BALANCES 13 NET CREDIT CUSTOMERS 1 NET EXTENDED BY FREE CREDIT BROKERS AND DEALERS 3 BALANCES Outstanding: 1971 - J u l y Aug. Sept. Oct. Nov. Dec. 4,790 4,850 4,930 4,950 4,910 5,400 2,420 2,430 2,430 2,410 2,400 2,440 7,210 7,280 7,360 7,360 7,310 7,840 (4) (4) 2,210 2,200 2,100 2,160 2,170 2,220 1972 - J a n . Feb. Mar. Apr. May June July 5,700 6,180 6,620 7,010 7,200 7,510 7,660 2,490 2,510 2,520 2,530 2,560 2,650 2,700 8,190 8,690 9,140 9,540 9,760 10,160 10,360 (4) (4) (4) (4) (4) (4) (4) 2,488 2,542 2,512 2,459 2,330 2,231 2,245 1972 - J u l y Aug. Sept. Oct. Nov. Dec. 70 60 80 20 -40 490 30 10 —— - - 100 70 80 — -20 -10 40 —— — -50 530 — 230 -10 100 60 10 50 1972 - J a n . Feb. Mar. Apr. May June July 300 480 440 390 190 310 150 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) Change i n Outstanding-; l 2 3 4 50 20 10 10 3(T 90 50 350 500 450 400 220 400 200 — - —— • - - — — — 268 54 -30 -53 -129 -99 14 ——— —* —— __ —— —— - — . - - Margin d e b t , as r e p o r t e d by t h e New York S t o c k Exchange. Although margin d e b t u n t i l March 1968 i n c l u d e d l o a n s s e c u r e d by U.S. governments, t h e amount of such l o a n s i n c l u d e d i s t h o u g h t t o have been s m a l l . "Bank l o a n s t o o t h e r s than b r o k e r s and d e a l e r s f o r p u r c h a s i n g or c a r r y i n g s e c u r i t i e s o t h e r than U.S. g o v e r n m e n t s . " The d i f f e r e n c e between c u s t o m e r s ' n e t d e b i t b a l a n c e s and c u s t o m e r s ' n e t f r e e c r e d i t b a l a n c e s , t h i s f i g u r e 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 dealers to the nonfinancial public. NOTE: With t h e e x c e p t i o n of bank l o a n d a t a , f i g u r e s a r e s u p p l i e d by t h e New York Stock Exchange and a r e end of month d a t a . Bank l o a n s a r e f o r weekly r e p o r t i n g l a r g e commercial b a n k s . B r o k e r d a t a i n c l u d e s l o a n s f o r r e g u l a t e d s e c u r i t i e s ; bank d a t a i n c l u d e s l o a n s f o r t h e 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 n o t . Series discontinued TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ m i l l i o n s ) SAVINGS ISt LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS NET NET SHARE CAPITAL REGULAR DEPOSITS 3 NEW NEW ANNUAL ANNUAL 2 MONEY MONEY2 NET GROWTH GROWTH NET 1 1 FLOW RATE RATE FLOW DATE 1969 1970 1971 I / 2,549 4,517 9,623 4.0 6.8 13.5 1971 - J u l y August September 415 300 793 - - 1972 - J u l y August e./ September e/ 581 418 950 —— 1972 - A p r i l May June July August p / September e / 820 576 937 798 665 842 - - - - - - -763 936 5,678 Not S e a s o n a l l y A d j u s t e d 4,068 3.1 -1,003 10,965 8.1 5,285 28,244 19.4 20,652 276 195 105 1,551 1,538 2,670 413 310 100 2,290 1,801 - - 3,396 - - —— - - —— TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW 6,617 15,482 37,867 3.4 7.7 17.5 NET NEW MONEY 2 -1,766 6,231 26,330 1,463 1,052 1,091 1,966 1,409 3,463 1,739 1,247 1,196 2,159 1,708 1,494 2,871 2,219 4,346 2,572 2,018 1,594 Seasonally Adjusted 1 2 3 11.7 8.2 13.2 ! 11.1 / 9.2 11.5 - - - - - 2,704 1,814 2,849 3,432 2,232 2,843 17.6 11.7 18.2 21.5 13.7 17.3 - — —— - — —— 3,524 15.8 2,390 3,786 4,230 2,897 3,685 10.5 16.6 18.3 12.3 15.5 Annual growth r a t e f o r monthly d a t a i s t h e a n n u a l i z e d monthly p e r c e n t a g e i n c r e a s e i n d e p o s i t s . Net New Money i s new d e p o s i t s n e t of b o t h w i t h d r a w a l s and i n t e r e s t . Data f o r S&Ls a r e f o r i n s u r e d a s s o c i a t i o n s o n l y , which r e p r e s e n t 96% of i n d u s t r y t o t a l r e s o u r c e s . R e g u l a r d e p o s i t s a t m u t u a l s a v i n g s banks e x c l u d e i t e m s such as C h r i s t m a s c l u b and c e r t a i n escrow a c c o u n t s , which r e p r e s e n t a v e r y s m a l l p a r t of t o t a l d e p o s i t s . SOURCE: N a t i o n a l A s s o c i a t i o n of Mutual Savings Banks and F e d e r a l 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 | | TOTAL 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) ( B i l l i o n s of D o l l a r s , Sea s o n a l l y A d j u s t e d ) >72 1 Sept. Oct. Nov. Dec. 16.4 16.3 16.6 16.6 Jan. Feb. Mar. Apr. May June July Aug. r / Sept. 17.0 18.3 19.5 20.5 21.7 21.7 22.0 22.7 23.3 13.2 13.1 -13.2 13.1 13.3 14.2 . 15.2 16.0 17.1 17.2 17.5 18.0 18.3 3.2 3.3 3.4 3.6 .07 .02 .20 .09 -.07 -.05 .08 -.06 . 14 .07 . 12 . 15 3.7 4.1 4.3 4.5 4.6 4.5 4.5 4.7 5.0 .30 1.34 1.19 .99 1.22 .40 .33 .67 .59 .12 .97 .97 .79 1.13 .48 .39 .42 .33 .18 .37 .22 .20 .09 -.08 - . 06 i .25 . 26 Based on d a t a from F e d e r a l Home Loan Bank Board and S a v i n g s Banks A s s o c i a t i o n s of New York S t a t e . D a t a f o r 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 amount of nonr e s i d e n t i a l commitments. S&L commitments i n c l u d e l o a n s i n p r o c e s s . Net c h a n g e s a r e d e r i v e d d i r e c t l y f r o m u n r o u n d e d o u t s t a n d i n g s l e v e l s a s r e p o r t e d and a f t e r 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 R e s e r y e . S u b t o t a l s may n o t add -to t o t a l s b e c a u s e of r o u n d i n g . 16 TABLE 12: Net Change in Mortgage Holdings DATE 1 FINANCIAL INSTITUTIONS LIFE MUTUAL SAVINGS 6c INSURANCE SAVINGS LOAN COMPANIES BANKS ASSOC. TOTAL INCLUDING FNMA-GNMA TOTAL COMMERCIAL BANKS 23,781 24,074 21,736 41,647 21,273 19,699 16,827 39,259 6,677 5,404 2,462 9,940 2,787 2,682 1,845 3,938 9,350 9,561 10,172 24,160 2,459 2,052 2,348 1,221 2,508 4,375 4,909 2,388 4,958 5,724 4,872 5,931 n.a. 4,674 5,692 4,717 5,563 n.a. 1,500 1,600 1,500 1,600 1,400 454 585 380 553 n.a. 2,720 3,453 2,758 3,313 2,888 24 54 79 97 90 284 50 155 368 370 FNMA-GNMA Not S e a s o n a l l y A d l u s t e d 1968 1969 1970 1971 1972 - May July Aug. Sept. S e a s o n a l l y Ad l u s t e d 1971 - Aug. Sept.r/ Oct. Nov. Dec. 4,270 4,007 3,747 3,745 4,323 3,758 3,541 3,357 3,443 4,081 1,001 999 974 843 824 400 306 329 465 522 2,252 2,122 1,977 2,058 2,357 105 114 77 77 378 512 466 390 302 242 1972 - J a n . Feb. Mar. Apr. May 3,323 3,715 4,408 4,357 4,914 5,324 4,780 5,645 n.a. 3,174 3,465 4,297 4,358 4,539 5,205 4,636 5,292 n.a. 1,088 1,154 1,261 1,384 1,461 1,514 1,477 1,501 1,202 272 296 486 390 455 533 365 537 n.a. 1,813 2,042 2,571 2,506 2,571 3,067 2,693 3,174 2,889 1 -27 -21 78 52 91 101 80 126 149 250 111 -1 375 119 144 353 326 July Aug. Sept. 1 Monthly d a t a f o r commercial banks based on F e d e r a l R e s e r v e e s t i m a t e s benchmarked t o C a l l Report d a t a on r e a l e s t a t e l o a n s o u t s t a n d i n g a s a v a i l a b l e . Other d a t a d e r i v e d from m o r t g a g e debt o u t s t a n d i n g a s r e p o r t e d s e p a r a t e l y by N a t i o n a l Assn. of Mutual S a v i n g s Banks, F e d e r a l Home Loan 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 a n d , t h r o u g h August 1968, t h e F e d e r a l N a t i o n a l Mortgage A s s o c i a t i o n , and t h e r e a f t e r by FNMA and t h e Government N a t i o n a l Mortgage A s s o c i a t i o n . Data f o r mutual s a v i n g s banks and f o r L i f e I n s u r a n c e companies may d i f f e r somewhat from t h o s e d e r i v e d from r e g u l a r q u a r t e r l y s e r i e s b e c a u s e of minor c o n c e p t u a l d i f f e r e n c e s f o r which a d j u s t m e n t s a r e not made i n t h e monthly s e r i e s . A l t o g e t h e r , t h e s e groups a c c o u n t e d f o r 87 p e r c e n t of t h e n e t i n c r e a s e e s t i m a t e d f o r a l l h o l d e r s in 1971. 17 TABLE 13: Net Increases in Mortgage Debt Outstanding B i l l i o n s of d o l l a r s , SAAR ^ QUARTER - I II III IV TOTAL RESIDENTIAL3 1- to 4FAMILY MULTIFAMILY COMMERCIAL . MULTI-AND COMMERCIAL 16.0 20.8 26.3 27.2 10.3 14.0 18.9 19.7 7.0 10.6 15.1 15.9 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 28.1 26.4 25.8 29.4 19.4 18.2 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 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 6.7 9.9 9.9 11.5 13.2 1.5 1.5 2.1 37.1 47.8 53.6 53.4 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 61.2 64.9 66.2 43.9 47.3 48.4 34.3 37.4 38.0 9.6 9.9 10.4 14.8 14.9 14.9 24.4 24.8 25.3 2.6 2.6 2.9 L 5.2 - - - .«* - 4. FARM L 1. 7 1.4 2.2 £ a o i l y TABLE 14: WEEK ENDED FNMA Weekly " A u c t i o n " Results IMPLICIT YIELD 2 (per c e n t ) COMMITMENTS IN $ MILLIONS ACCEPTED 1-YEARll 1-YEAR 1 90690TOTAL 6TOTAL & OVER MONTH & OVER DAY MONTH DAY OFFERED J u l y 10 24 134.6 123.9 92.1 113.0 92.1 113.0 Aug. 7 21 106.2 114.6 81.7 87.2 81.7 87.2 - - Sept. 5 18 220.6 295.9 151.2 148.1 151.2 148.1 - - Oct. 2 16 30 352.8 271.2 186.4 211.5 224.9 224.9 211.5 224.9 224.9 Nov. 13 78.7 162.7 162.7 - - - - - - - - 7.62 7.62 - - 7.63 7.62 __ - - - - 7.63 7.65 __ —— - - - - - - 7.69 7.72 7.72 - - - - - - —— - - 7.71 " N o t e : Under t h e FNMA a u c t i o n s y s t e m , approved s e l l e r s of Governmentu n d e r w r i t t e n m o r t g a g e s b i d f o r FNMA f o r w a r d p u r c h a s e commitments. Average s e c o n d a r y market y i e l d s a f t e r a l l o w a n c e f o r commitment f e e and r e q u i r e d p u r c h a s e and h o l d i n g of FNMA s t o c k , assuming prepayment of 15 y e a r s f o r 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 . . Y i e l d s shown a r e g r o s s , b e f o r e d e d u c t i o n of 38 b a s i s p o i n t s f e e p a i d by i n v e s t o r s to servicers. 19 TABLE 15: Private Housing Starts and Permits SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE 1971 - October November December 2 TOTAL OFFINANCING OTHER 2,038 2,228 2,457 1,155 1,242 1,347 882 985 1,110 179.7 176.4 152.1 133.1 120.1 2,487 2,682 2,369 2,109 2,350 2,330 July r / 2,218 Augusc r / 2,484 Septembe p / | 2,366 October 2,410 1,415 1,325 1,302 1,167 1,344 1,296 1,289 1,410 1,371 1,288 1,071 1,357 1,067 942 1,006 1,034 929 1,074 1,613 1,122 150.9 153.6 205.8 213.2 227.9 226.3 205.0 228.2 200.8 106.0 117.8 155.7 172.9 186.1 184.8 1972 - J a n u a r y February March April May 1 UNADJUSTED BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 1,991 1,955 171.9 188.0 162.6 T o t a l s t a r t s a r e Census e s t i m a t e s i n c l u d i n g farm f o r both p e r m i t - i s s u i n g and n o i . - i s s u i n g a r e a s . A d w e l l i n g u n i t i s s t a r t e d when e x c a v a t i o n b e g i n s ; a l l u n i t s i n an apartment s t r u c t u r e a r e c o n s i d e r e d s t a r t e d a t t h a t t i m e . FHA and VA s t a r t s a r e u n i t s s t a r t e d under commitments by t h e s e a g e n c i e s t o i n s u r e or g u a r a n t e e t h e mortgages. As r e p o r t e d by FHA and VA, a u n i t i s s t a r t e d when a f i e l d o f f i c e r e c e i v e s t h e f i r s t compliance i n s p e c t i o n r e p o r t , which i s made b e f o r e f o o t i n g s a r e poured i n some c a s e s but normally a f t e r t h e f o u n d a t i o n s have been completed. Other s t a r t s a r e d e r i v e d as a r e s i d u a l , a l t h o u g h t o t a l and FHA and VA s t a r t s a r e not s t r i c t l y comparable in concept or t i m i n g ; o t h e r s t a r t s i n c l u d e both u n i t s f i n a n c e d by c o n v e n t i o n a l mortgages and u n i t s 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 a r e Census e s t i m a t e s based on 13,000, or a l l known p e r m i t i s s u i n g places. Unlike s t a r t s , seasonally a d j u s t e d b u i l d i n g permits r e f l e c t d i r e c t a d j u s t m e n t f o r d i f f e r e n c e s in t h e number of days per month, a s w e l l a s o t h e r d i f f e r e n c e s i n t i m i n g and coverage. k 2o TABLE 16: Mortgage and Bond Yields FHA MORTGAGES DATE 30-year 2 1 CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON CONV. & . FHA MORTGAGES 5 NEW ISSUE Aaa UTILITY 4 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 6 1970 - High Low 9.29 8.40 8.60 8.30 -.10 -.74 9.43 7.72 .37 .70 1971 - High Low 7.97 7.32 7.95 7.55 .28 -.19 8.26 7.02 .52 -.36 1971 - Nov. Dec. 7.62 7.59 7.75 7.70 .13 .11 7.38 7.28 .24 .31 1972 - J a n . Feb. Mar. Apr. May June July August September 7.49 7.46 7.45 7.50 7.53 7.54 7.54 7.55 7.56 7.60 7.60 7.55 7.60 7.60 7.60 7.65 7.65 7.70 .11 .14 .10 .10 .07 .06 .11 .10 .14 7.21 7.34 7.24 7.45 7.38 7.32 7.38 . 7.37 7.40 .28 .12 .21 .05 .15 .22 .16 .18 .16 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 f o r s e r v i c i n g c o s t s which a r e much h i g h e r f o r m o r t g a g e s t h a n f o r b o n d s . G e n e r a l l y , bonds pay i n t e r e s t semia n n u a l l y ; m o r t g a g e s , m o n t h l y . Mortgage y i e l d s , i f computed a s e q u i v a l e n t 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 , would be s l i g h t l y h i g h e r t h a n given i n t h e table. Based on 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 b i d p r i c e s i n t h e p r i v a t e s e c o n d a r y m a r k e t f o r new-home m o r t g a g e s f o r immediate d e l i v e r y . S e p a r a t e data a v a i l a b l e f o r 25-year and—beginning J u l y 1961--30-year mortgages with minimum downpayments, w e i g h t e d by p r o b a b l e volume of t r a n s a c t i o n s . Y i e l d s computed by FHA,_a-s-suming prepayment p e r i o d of 12 y e a r s f o r 2 5 - y e a r mortgages and 15 y e a r s f o r 3 0 - y e a r m o r t g a g e s . Based on 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 r a t e s (rounded) on c o n v e n t i o n a l f i r s t mortgages p r e v a i l i n g i n t h e m a r k e t a r e a s of i n s u r i n g offices. See n o t e f o r T a b l e 1. Y i e l d s p r e a d e q u a l s c o n v e n t i o n a l mortgage r a t e l e s s FHA s e c o n d a r y market y i e l d . Y i e l d s p r e a d e q u a l s FHA s e c o n d a r y market y i e l d l e s s new Aaa c o r p o r a t e bond yield. 21 DATE NEW HOMES CON- FEES & TRACT CHARGES EFFEC- MATURITY LOAN/ PRICE LOAN RATIO AMT (PER ($000) CENT) EXISTING HOMES CON- FEES & LOAN / TRACT CHARGES EFFEC- MATU- PR1CF. (PER RATE TIVE RITY RATIO LOAN AMT. ($000) RATE (PER CENT) (PER CENT) 7.51 7.60 7.67 7.68 7.65 7.62 0 .90 0 .84 0 .97 0 .97 0 .87 0..93 7.66 7.74 7.83 7.84 7.79 7.77 26 .3 26 .2 25 .8 26 .4 26 .7 26 .6 74.5 73.9 75.3 75.5 75.4 74.5 27,.1 26 .5 25,.9 26..3 27..3 26..5 7.50 7.58 7.63 7.62 7.56 7.51 0.75 0.76 0.78 0.79 0.79 0.78 7.63 7.71 7.76 7.75 7.69 7.64 24 .2 24 .5 24 .2 24 . 1 24 .6 24 .6 74.5 74.2 74.5 ,74.2 74.6 74.6 23.2 23.5 22.5 22.9 23.2 23.9 7.62 7.45 7.38 Apr. 7.38 7.40 May 7.41 June 7.43 July Aug. 7.45 Sept.r/ 7.43 Oct. j>/ 7 . 4 8 0..95 1.,02 0.,84 0.83 0 . ,84 0.85 0 . 63 0 . 86 0. 86 0 . 88 7.78 7.61 7.52 7.51 7.53 7.55 7.56 7.59 7.57 7.62 26,.5 27.0 27.,2 27..2 27. ,2 27.2 27. 2 27. 5 27. 3 27.2 75.0 76 .5 76.2 76.0 76.2 76.5 77.0 77.5 77.5 77.4 27. 6 27. 8 28. 2 28.5 28.5 27. 8 28. 2 27. 9 27.9 27.4 7.45 7.35 7.31 7.30 7.33 7.36 7.37 7.39 7.42 7.43 0.82 0.79 0.77 0.78 0.77 0.78 0.83 0.81 0.83 0.82 7.58 24 .7 7.48 25,.4 25..1 7.44 7 . 4 2 . 25, .2 7.46 25..2 25..5 7.59 7.50 25. 6 7.52 26.3 26. 2 7.55 25. 9 7.56 74.7 75.8 75.6 75.3 75.4 76.1 76.2 76.5 76.5 75.9 24.1 24.8 24.4 24.9 24.6 25.2 25.2 25.4 24.8 24.7 2 TIVE RATE (YEARS) 3 (PER CENT) CENT) RATE 2 3 (YEARS) (PER CENT) 1971 July Aug. Sept. Oct. Nov. Dec. 1972 Jan. Feb. Mar. Compiled by F e d e r a l Home Loan Bank Board i n c o o p e r a t i o n w i t h F e d e r a l Deposit I n s u r a n c e C o r p o r a t i o n . Data a r e weighted a v e r a g e s based on p r o b a b i l i t y sample survey of c h a r a c t e r i s t i c s of c o n v e n t i o n a l f i r s t mortgages o r i g i n a t e d by major i n s t i t u t i o n a l l e n d e r groups ( i n c l u d i n g mortgage companies) f o r p u r c h a s e of s i n g l e f a m i l y homes. Data exclude l o a n s f o r r e f i n a n c i n g , r e c o n d i t i o n i n g or m o d e r n i z a t i o n ; c o n s t r u c t i o n loans t o h o m e - b u i l d e r s ; and permanent loans which a r e coupled w i t h c o n s t r u c t i o n l o a n s t o ownerb u i l d e r s . R e l a t e d s e r i e s on c o n v e n t i o n a l mortgage r a t e s o n l y , based on unweighted o p i n i o n s of f i e l d - o f f i c e d i r e c t o r s of t h e F e d e r a l Housing A d m i n i s t r a t i o n , a r e a v a i l a b l e somewhat sooner than t h e r e s u l t s of t h e FHLBB-FDIC s u r v e y , and a r e i n c l u d e d - i n the case of new home mortgage r a t e s - - i n Table 16. Fees and c h a r g e s - - e x p r e s s e d as a p e r c e n t a g e of t h e p r i n c i p a l mortgage a m o u n t - - i n c l u d e loan commissions, f e e s , d i s c o u n t s , and o t h e r c h a r g e s which p r o v i d e added income t o the l e n d e r and a r e p a i d by t h e borrower. They exclude any c l o s i n g c o s t s r e l a t e d s o l e l y to t r a n s f e r of p r o p e r t y ownership. 3 I n c l u d e s f e e s & c h a r g e s amortized over a 10 y e a r p e r i o d i n a d d i t i o n t o t h e c o n t r a c t interest rate.
@FedFRASER