Full text of H.16 Capital Market Developments : November 22, 1971
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At / DECONTROLLED' AFTER SIX MONTHS, d / G c v . m L S I C — < i < — i d (F R ) . 'z-.r r CAPITAL MARKET DEVELOPMENTS .. November 22. 1971 7 INDEX 3-5 Developments in the Corporate and Municipal Bond Markets 6-7 Capital Market Yields 8-13 Capital Market Volume 14-17 Stock Market 18-33 Mortgage Market •' — SYMBOLS: e Estimate p Preliminary r n.a. Revised Not available 4 TABLE 1: Yields, Volume and Reception WEEK ENDING: 1971 - Oct. Nov. YIELDS MOODY'S SEASONED NEW ISSUE 1 Aaa CORPORATE BOND. MARKET . VOLUME;2. GROSS OFFERINGS PER CENT SOLD BY END OF WEEK 8 15 22 29 7.30 7.22 7.17 7.11 7.44 7.42 7.37 7.31 371 471 536 521 77 74 94 48 5 12 19 26 7.05 7.12 7.23 7.25 7.24 7.27 n.a. 552 584 488 175e 80 79 68 n.a. WEEK ENDING: YIELDS MOODY'S BOND BUYER SEASONED SEASONED 20 Aaa BOND INDEX 1971 - Oct. 8 15 22 29 4.80 4.65 4.65 4.90 Nov. 5 12 19 26 4.75 4.90 4.95 . MUNICIPAL BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END OF WEEK . OFFERINGS BONDS SCHEDULED WITHIN 28 DAYS n.a. n.a. n.a. . n.a. " n. a. n.a. n.a. / .. n.a.; • v r? . ' :?• BONDS SCHEDULED WITHIN 28 DAYS 5.17 4.99 4.97 5.11 368 327 455 547 75 68 57 68 833 1,180 1,290 1,337 4.99 5.19 5.25 383 696 863 180e 66 66 69 1,584 1,245 1,180 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.) i Millions of dollars unless otherwise indicated. Note: Sec footnotes to Table 3 / TABLE 2: Details on Inventories DATE OFFERED J 1 11/11 11/10 11/9 11/9 11/3 11/8 11/18 11/18 11>17 11/17 11/16 11/16 11/15 11/15 AMOUNT (MIL. $) 50.0 60.0 50.0 25.0 30.0 60.0 25.0 20.0 12.0 80.0 35.0 100.0 75.0 100.0 OFFERED DATE 1 RELEXSED 11/4 10/14 11/18 11/16 CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK RATING AND ORIGINAL YIELD CALL PROTECTION COUPON ISSUER 50% 5 yrs New York St. E&G 8 5/8 7.50 Aa 35% 5 yrs Cincinnati G&E Aaa 7 3/8 7.29 85% 7 yrs 7.00 6.95 N.R. Honeywell Fin 90% 5 yrs Jersey Cent. P&L 8.00 7.89 A 30% 5 yrs 7 3/8 Aa Dallas PScL 7.23 40% 5 yrs Consumers Pwr Aaa 7 1/2 7.50 30% 5 yrs Gen'l Tele of SE Baa 8.00 7.90 98% 10 yrs Dial Fin 7 7/8 7.875 N.R. 85% 5 yrs Continental Tele Baa 8.00 7.95 85% 5 yrs Public Svc E&G Aa 7.60 7 5/8 75% 7 yrs Franklin N Y Corp 7.30 7.30 N.R. -98% W.R. Grace 6.50 6.50 Ba 30% 5 yrs Aaa So f Central Bell 6.60 6.75 40% Aaa So. Central Bell 5 yrs. 7 3/8 7,45 CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK 1 ORIGINAL INCREASE RATING AND ESTIMATED PRO- . IN YIELD CALL PROT. PORTION RELEASED ISSUER COUPON AMOUNT YIELD 22 29 Nov. 5 12 19 Detroit Edison Manuf Hanover Tr 60.0 -100.0 DATE 1971 - Oct. ESTIMATED PROPORTION SOLD 1 INVENTORIES * MUNICIPALS 1 IN SYNDICATE BLUE LIST 261 897 312 946 892 901 979 218 360 453 7 3/8 6.50 7.38 6.50 +22 +33 5 yrs A N.R. C0RP0RATES IN SYNDICATE 127 332 50% 30% v 158 214 288 - N o call protection. 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. which is daily average TABLE 3: High Grade Bond Yields DATE ' NEW CORPORATE Aaa1 MOODY'S SEASONED CORPORATE Aaa2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS 4 1969 - High Low 8.85 (12/26) 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) 1970 - 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 (5/29) 5.33 (12/11) 1971 - 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) 6.23 (6/24) 4.97 (10/21) 7.22 7.17 7.11 7.42 7.37 7.31 5.90 5.93 5.81 4.99 4.97 5.11 1971 - Oct. 15 22 29 4.99 5.79 7.05 5 7.25 12 7.12 5.19 7,24 5.84 7.23 19 5.25 7.27 5.83 1 New corporate issues, with call protection, adjusted (as described in footnote 1 of Table 1) to a Aaa basis. 2 Weekly average of daily figures. Average term of bonds included is 22-24 years. 3 Weekly average of daily figures. 4 Thursday figures. The average rating of the 20 bonds used in this index ' falls midway between the four top groups as classified by Moody's Investors Service. N o t e — H i g h s and lows are for individual series and may be on different dates for different series. Nov. 6 TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS CORPORATE PERIOD >. 1 STATE A N D LOCAL 2 1971 1970 1969 | 1971 1970 1969 January February March 3,115 3,000 6,075 2,636 1,802 3,539 2,075 2,045 2,098 i 2,706 1,839 2,156 1,340 1,214 1,555 1,262 987 538 April May 4,007 3,271 4,375 3,170 3,909 3,389 2,748 2,076 2,530 1 ! 1,920 2,140 2,035 1,647 996 1,085 1,801 1,110 737 July August September 4,147 2,532 3,768 2,768 2,274 2,518 2,478 1,427 2,427 ; 1,964 1,892 2,061 1,348 1,359 1,758 1,097 808 559 October November December 3,010e 2,777 4,182 3,980 1,933 2,375 2,532 l,700e 1,924 1,748 2,190 1,280 886 816 12,190 11,654 10,447 7,977 10,468 8,560 11,939 6,218 7,354 6,332 6,840 6,701 6,095 5,917 4,109 3,728 4,465 5,862 2,787 3,648 2,464 2,982 23,844 34,291 18,445 27,005 38,944 13,572 19,904 26,744 12,796 18,713 7,837 12,302 18,164 6,435 8,899 .11,881 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year . ' ! 1 2 3 Securities and Exchange Commission estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts Total gross proceeds excluding offerings of sales and consumer finance companies. - 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 BONDS AND MEMO: PUBLICLY PRIVATELY PFD. . ISSUES INCLUDED MFG. OFFERED PLACED STOCK FOREIGN | CONVERTIBLE GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS 1 1970 - III IV 8,560 11,938 5,937 7,827 914 1,421 1,659 2,690 83 226 287 737 2,314 3,169 2,714 3,406 868 1,346 2,663 4,020 1971 - I II IHe 12,190 11,688 10,447 8,369 6,546 4,725 1,516 1,758 1,641 2,306 3,384 4,079 84 215 114 724 1,351 652 3,794 3,130 2,202 3,197 2,910 2,651 1,606 896 . 2,263 3,594 4,753 3,331 1970 - Oct. Nov. Dec. 3,777 . 4,181 3,979 2,390 3,001 2,436 304 283 834 1,083 898 709 56 11 159 388 184 165 1,006 1,107 1,056 1,101 1,350 955 371 693 282 1,300 1,033 1,687 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 1,452 391 683 532 1,332 587 1,675 Apr. May June 4,042 3,271 4,375 2,116 2,148 2,282 507 491 760 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 July r/ Aug. £/ Sept.e/ 4,147 2,532 3,768 1,331 1,428 1,966 619 416 606 2,196 687 1,196 72 34 8 199 160 293 582 474 1,146 732 849 1,070 1,622 359 282 Oct. 3,010 1,950 500 560 n. a. 210 500 800 410 and finance, and commercial and other. Source: Securities and Exchange Commission, able. Quarterly supplements are avail- | 1,210 850 1,271 1,300 TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. T r e a s u r y ) 1 Nov. 1 through Nov. 19, 1971 AMOUNT (MILLIONS ISSUER TYPE2 OF MATURITY DOLLARS) COUPON RATE OR NET INTEREST COST MOODY'S RATING OFFERING YIELD Coroorates Indianapolis PWB & Ligfrt Co Metropolitan Edison Co Capital Mtge Investment International Paper Co Penna Pwr & Light Co Beneficial Corp Beneficial Corp Ford Motor Credit Corp Ford Motor Credit Corp Detroit Edison Co Detroit Edison Co Gen'l Telephone Co of Michigan Central Telephone Co Dallas Pwr & Light Co Alcoa Indiana & Michigan Elec Co Consumers Pwr Co Jersey Central Pwr & Light Co Telex Corp t Continental Illinois Properties Gulf States Uitlf Co Gulf States Util Co Baxter Laboratories I tic Baxter Laboratories Inc Honeywell Finance Inc Jersey Central Pwr & Light Co Reynolds Securities Inc. Sierra Pacific Pwr Co Consolidated Edison Co of N.Y. Cincinnati Gas & Elec C<gr Cenco Instrument Corp Beneficial Standard Mtg Inv Com stk 1st mtg Conv sub Conv sub Com stk Debs Debs Debs Bonds Gen'l & ref mtge Com stk Bonds S.F. debs 1st mtg S.F. debs Pref stk 1st mtg Cum pref stk Sub debs Benf Int 1st mtg Com stk Debs Com stk Debs 1st mtg Com stk Cum pref stk Com stk 1st mtg Sub debs 1Conv debs 15.7 15.0 25.0 53.3 38.4 75.0 50.0 100.0 100.0 90.0 60.0 18,0 15.0 30.0 150.0 35.5 60.0 25.0 25.0 100.0 35.0 40.3 55.0 15.9 50.0 25.0 24.0 15.0 101.5 60.0 30.0 18.0 -- -- -- — — 7.72 6.50 4.25 A 1991 1996 7.88 6.50 4.25 -- -- 1996 1977 1996 1991 7.50 6.75 4.50 7.50 7.50 6.75 4.50 7.50 2001 .7.38 7.38 Aa 2001 1996 2001 1996 7.50 7.75 7.38 7.45 7.50 7.80 7.31 7.45 A A Aaa A -- -- -- 7.42 7.35 -- -- 9.00 • -- ---- 2001 1996 - \ • ----- • -- Aaa - 9.00 — 7.50 7.50 Ba 1991 4.38 4.38 Ba -- -- -- — 1978 2001 7.00 8.00 6.95 7.89 A -- -- -- -- -- -- -- • -- — -- — 2001 1996 1991 -- 7.38 5.00 6.50 — — 7.29 5.00 6.50 Aaa Ba TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. T r e a s u r y ) 1 Nov . 1 through Nov. 19 ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST OFFERING YIELD MOODY'S RATING Corporate (Cont'd) New Y o r k State Elec & Gas Corp Realty Income Trust South Central Bell Tele Co South Central Bell Tele Co W. R. Grace & Co HNC Mtge & Realty Franklin New York Corp Contintental Telephone Co of Calif Public Service Elec & Gas Co Dial Financial Corp Gen'l Telephone Co of the S.E. N.J.B. Prime Investors 1st mtg Debs Notes Debs Conv debs Conv debs Notes Debs 1st mtg * Debs 1st mtg Debs 50.0 25.0 75.0 100.0 100.0 15.0 35.0 25.0 80.0 20.0 25.0 15.0 2001 1996 1978 2007 1996 1996 1979 1996 2001 1991 2001 1991 7.63 8.00 6 3/4 7 3/8 6 1/2 6 3/4 7.30 8.00 7 5/8 7 7/8 8.00 6 3/4 7.50 8.00 6.60 7.45 6.50 6.75 7.30 7.95 7.675 7.875 7.90 6.75 I --- Aaa Aaa Ba • — Baa Aa — Baa 1971 TABLE 6: Large Long-term Public Security Issues for Mew Capital (continued) (Other than U.S. Treasury) 1 Nov. 1 through Nov ' ISSUER 1 TYPE 2 AMOUNT (MILLIONS OF DOLLARS) 1 1 MATURITY COUPON RATE" OR NET INTEREST COST I ; OFFER1 , INC • | YIELD 19,1971 1 MOODY 'S RATING State and Local Los Angeles DWAPS Los Angeles DWAPS Ohio, State of \ Washington Sub. Sanit, D^st., Md. Los Angeles Go, Flood Confer Dist, Calif Los Angeles Co, Flood Contr District, Calif New York State Mtge Agency New York State Mtge Agency 1 California State of Broward Co, Fla Chicago Park District Lawton, Okla Lawton, Okla. Guilford Co, N.C. Puerto Rico Wtr Resources Auth Chicago City Sch Diet Port of Portland, Ore. Port of Portland, Oreg Georgia m g n w a y Aunn Taunton, Mass Essex Co, N.J. New Jersey Housing Finance Agency Louisville Riverfront Corp York S/D Auth., Pa. York S/D Auth., pa. Wayne T.P. S/D N.J Oklahome Turnpike Auth 24.8 25.2 100.0 23.0 2:011 1977-1996 1973-1992 1974-1995 4.86 4.86 4.28 4.59 5.00 3.50-4.1B0 2.85-5. 15 3.10-4.85 Aa .Aa Aaa Aa G.O. 9.0 1972-2001 4.59 £.75-5. 10 Aa G . 0. Rev Rev G. 0. Rev. G.O. G.O. G. 0. G. 0. Rev. G.O. 10.0 33.1 16.6 150.0 32.0 20.0 11.2 . 1.8 10.0 50.0 45.0 8.5 16.5 14.0 10.8 26.0 43.0 3.10-4. 85 5.74 3.10-4.50 4.00-5. 25 3.50-5. 90 , 2.80-4,70 \ 3.00-4. 75 3.00-4. 75 2.70-4. 90 3.20-5. 50 3.00-5. 00 3.25-5. 65 Aa A A Aa Rev Rev G.O. G. 0. Rev# Rev. Rev. G.O. G.O. G.O. Mtge Rev Rev Rev G.O. Rev. 10.0 11.7 1.7 10.4 74.0 1974-1995 4.59 1996 — 1972-1981 — 1981-2021 5,13 1974-3005 5.72 1972-1986 4.28 1974-1997 4.45 1974-1997 4.46 1972-1994 4.44 1973-2004 5.52 1973-1991 • 4.81 1973-1991, 5.77 2006 5.77 1972-I S 9 F " 4.61 1972-1990 -1972-1996 — 1972-2019 5.36 1973-2010 5.59 1972-1994 4.89 1972-1976 4.89 1973-1995 5.39 1971-2004 6.38 — 2.70-4. 90 3.00-5. 10 2.80-5. 10 2.90-5. 40 -— A -- Aa A -- Baa Baa Aa Aa Aa 3.20-5. 75 --- Aa Aa 3.40-5,,60 -- -- TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 ' , __ AMOUNT (MILLIONS OF DOLLARS) ! . ISSUER TYPE? Nov. 1 through Nov. 19, 1971 MATURITY COUPON RATE OR NET INTEREST COST | i »>I-TKR! L;,c, j YIELD MOODY'S RATING State and Local Dallas-Ft. Worth Reg Arpt, Tex, Boston, Mass Virginia, State of Detroit, Mich Clarkstown, N;Y. Illinois, State of Alabama Highway Auth New York State Housing Fin Agency Philadelphia, Pa Philadelphia, Pa Maryland Dept of Transp Anne Arundel Co, Md Los Angeles Comm Rede1 Agency Los Angeles Comm Redel Agency Rev G.O. G.O. G.O. G.O. G.O. Rev. G.O. G.O. G.O. Rev. G.O. Rev Rev 17.0 52.2 23.5 14.2 11.7 150.0 25.0 175.0 10.0 23.1 28.4 15.0 •5.4 4.6 1975-1995 1972-1991 1973-1992 1972-1986 1972-2009 1972-1993 1972-1987 1973-2012 1973-2002 1973-2002 1972-1986 1972-20.01 1972-1980 198fj 300.0 1976 6.799 6.563 4.479 4.922 5.02 5.10 4. 25-6 .10 3. 20-5 .90 2. 80-5 .00 3.,25-6 .24 3,,10-6 .00 2.,70-4.875 3.,00-5 .00 3,,20-5 .875 3,.75-6 .75 3,.75-6 .75 2,.90-4 . 75. 2,.90-5 .50 3 .25-4 .50 5 .20 5.779 5 .70 — 5.298 4.524 5.56 5.684 4.632 4.849 — Other Export-Import Bank Debs • * 1 I I 2 3 1 '• V Sights offering. Includes corporate and other security offerings of $15 million and Over; State and local security 1 offerings of $10 million and over. In case of State and local government securities, G.O. denotes general obligation; dev.-Ut., revenue obligations secured only by income from public utilities; Rev. -Q.- lit. ,' revenue bonds secured only by income from quasi-uti litivs;' Rvv.-S.T. , revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by lease payments. Includes foreign government and International Bank for Reconstruction and Development issues and non-quaranteed issues by Federal Agencies. Baa Baa Aaa Baa Baa Aaa A A Baa Baa Aa A A A 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) As o f N o v . 19, 1971 APPROXIMATE DATE OF OFFERING Corporates Georgia Pwr Co ITT Rayonier Alison Htge & Inv Trust Duquesne Light Co Hotel Investors Iowa Pwr & Light Co Orange & Rockland Util Inc. Delmarva Pwr & Light Co First Financial Corp Houston Lighting & Pwr Co Hartford Elec Light Co Minneapolis Gas Co General Telephone of Calif Dominion Bankshares Duke Pwr New York Telephone Co Penna Elec Co Atlantic Bancorp Pacific Lighting Service Co Gen'1 Telephone Co of Indiana Philadelphia Elec Co Connecticut Light & Power Co Alabama Pwr Co Alabama Power Co First National State Bancorp Long Island Lighting Co Michigani'tfisconsin Pipeline Co Bell Tele Co of Pa Texas Elect Svc Northern Natural Gas Co Oklahoma G&E Pub Svc Co of Ind. Kentucky Pwr Co Carolina Pwr 5c Lt Co Lone Star Gas Co Louisiana Pwr & Light Co Tampa Elect C&P Tele Co of Md 1st mtg Debs Debs Bonds Debs 95.0 50.0 25.0 . 35.0 20.0 Nov. Nov. Nov. Nov. Nov. 22 23 23 23 23 1st. mtg Bonds 1st mtg Debs 1st mtg 1st mtg Debs Bonds Debs Bonds Bonds Bonds Debs Debs Bonds 1st mtg 1st mtg 1st mtg Prf stk Notes 1st mtg Bonds Bonds Bonds Debs Bonds Bonds Bonds Stk Debs Bonds Bonds Bonds 15.0 12.0 35.0 10.0 50.0 30.0 12.0 » 50.0 15.0 100.0 200.0 30.0 20.0 26.0 18.0 80.0 30.0 25.5 38.0 25.0 50.0 40.0 125.0 30.0 60.0 30.0 50.0 50.0 45.0 30.0 25.0 40.0 . 100.0 Nov. Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. 29 29 30 30 30 1 1 2 7 7 8 8 9 9 13 13 14 15 15 15 16 16 5 10 11 11 12 17 18 18 19 20 25 . „ 13 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING S t a t p. and T.nr.al Greater Chicago Metro Sanitary Disf, 1 1 1 Erie County NY Louisiana, State of Milwaukee, Wis. Penna, State of Connecticut, State of University of Texas Hennepin Co, Minn. Chicago Public Bldg Com Oklahoma Capital Imp Auth Oregon, State of N.Y. C i t y Orleans Parish Sch Bd HAA Richmond, Va Philadelphia Sch Dist, Pa G .0. G .0. G .0. G .0. G 0. G .0. Rev. G,. 0 . Rev. G.. 0 . G. 0 . G, 0 . G. 0 . Bonds G. 0 . G. 0 . 25.0 14.0 55.0 17.0 125.0 12.5 50.0 10.5 55.0 17.5 68.0 354.0 12.0 253.0 35.0 40.5 Debs. 1000.0 Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. . Dec. Dec. March 22 23 23 30 1 2 2 7 7 14 14 14 14 15 15 7 Nov. 23 Other F.N.M.A. * 1 2 Included in table for first time. Includes corporate and other issues of $15 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. ^ Table 8 STOCK PRICES AND VOLUME STOCK P R I C E S 1 - TRADING V O L U M E 2 ' DATE NYSE INDEX 3 * D J . INDUSTRIALS HMEX 4 NYSE AMEX 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 (12/250 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) 1971 - 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) 11.0 (8/13) 6.7 (2/12) 2.7 (8/13) Oct. 1 8 15 22 29 54.66 54.94 54.06 52.82 52.07 893.98 893.91 874.85 852.37 839.00 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 Nov. 5 12 19 52.16 50.85 50.47 840.39 812.94 810.67 24.54 24.10 23.78 13.1 12.4 12.2 3.3 2.8 3.0 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/ Through: From 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 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' NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY FREE CREDIT BROKERS AND DEALERS 3 BALANCES Outstanding; 1970 Sept. Oct. Nov. Dec. 3,920 4,010 4,010 4,030 2,330 2,270 2,320 2,330 1971 -Jan. Feb. Mar. Apr. May June July Aug. Sept. 4,000 4,090 4,300 4,530 4,620 4,720 4,790 4,850 4,930 2,300 2,330 2,360 2,340 2,340 2,390 2,420 2,430 2,430 110 90 30 -60 50 6,250, 6,280 6,330 6,360 6,300 6,420 6,660 6,870 6,960 7,110 7,210 7,280 7,360 (4) *8 (4) 2,236 2,163 2,197 2,286 (4) (4) (4) (4) 2,452 2,743 2,798 (4) (4) (4) (4) 44) (4) (4) (4) (4) (4) (4) (4) (4) 2,550 2,440 2,210 T l 2,200 2,100 2,660 s! Change in Outstanding 1970 Sept Oct. Nov. Dec. 1971 -Jan Feb. Mar. Apr. May June July Aug Sept. 1 2 3 4 5 20 90 210 230 90 100 70 60 80 10 -30 30 30 -20 50 30 10 140 30 50 30 153 -73 34 89 -60 120 240 210 90 150 100 70 291 291 55 -138 -110 80 100 110 230 -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 secu- > rities 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 iteSrieY s^ntinued. Changes in series. TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS NET REGULAR DEPOSITS 3 NEW ANNUAL M ONEY2 GROWTH NET RATE 1 FLOW 4,203 2,549 4,466 1968 1969 1970 176 575 276 1970 - August September October 300 793 400 1971 - August September £/ October j>/ 7.0 4.0 6.7 1,143 -763 936 — — —— - — SAVINGS & LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL MONEY 2 NET GROWTH FLOW RATE1 TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW Not Seasonally Adjusted \ 7,432 6.0 2,738' 11,635 3.2 -1,003 4,200 6,749 11,173 8.2 5,295 15,639 81 -8 138 550 1,827 1,130 —— 195 105 250 1,109 2,669 1,540 - - - — - -- 6.3 3.4 7.7 —— 511 575 1,050 726 2,402 1,406 1,050 1,109 1,492 1,409 3,462 1,940 . — 4,172 2,791 2,970 3,164 1,710 2,801 2,390 21.8 14.3 15.1 15.9 8.4 13.8 11.6 - — -- — NET NEW MONEY 2 3,881 -1,766 6,231 592 567 . 1,188 1,245 1,214 1,742 Seasonally Adjusted 1971 - April May June July Augdst September £_/ October £/ 1,176 ' 795 818 566 425 643 561 19.0 12.7 12.9 8.8 6.6 9.9 8.6 —— —— - - - - " 1 2 .3 2,996 1,996 2,152 2,598 1,285 2,158 1,829 23.1 15.1 16.1 19.2 9.3 15.6 13.0 - - — -- » . —- 4D 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% of1 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 LOAN BANKS (N.Y. STATE) ASSOCIATIONS TOTAL 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars, Se asonally Adjusted)—^ Sept. Oct. Nov. Dec. >71 - Jan. Feb. Mar. Apr. May June July Aug. Sept. l 8.9 9.3 9.6 10.1 7.1 7.5 7.8 8.1 1.8 1.8 1.8 2.0 .25 .30 .35 .51 10.4 11.2 12.6 13.8 15.3 16.1 16.3 16.4 16.5 8.3 8.9 10.1 11.1 12.2 13.0 13.2 13.3 13.3 2.1 2.3 2.5 2.8 3.1 , 3.1 3.1 3.1 3.2 .25 .80 1.36 1.30 1.56 .77 .24 .07 .12 .36 .37 .34 .28 -.11 -.07 .01 .23 .20 .60 1.16 1.01 1,21 .72 . . 28 E/ ,10 l/ -.01 Based on data from Federal Home Loan Bank Board and Savings Banks Associations of New York State* Data^for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments inculde loans in process. 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. •• . •• ' / x ' V .05 . .20 y .20 .29 .34 .05 .02 , .03 £/ .13 IS TABLE 12: Net Change in Mortgage Holdings DATE TOTAL INCLUDING FNMA-GNMA TOTAL 1 . FINANCIAL INSTITUTIONS MUTUAL SAVINGS & SAVINGS COMMERCIAL LOAN BANKS BANKS ASSOC. LIFE INSURANCE COMPANIES F::MA-GXMA Not Seasonally Adlusted 1967 1968 1969 1970 2 / 20,016 23,781 24,189 21,822 18,219 21,273 19,814 16,913 4,639 6,677 5,404 2,462 3,153 2,787 2,682 1,845 7,520 9,350 9,676 10,288 2,907 2,459 2,052 2,318 1,797 2,508 4,375 4,909 1970 - Aug. Sept. Oct. 2,072 2,318 2,207 1,673 1,956 1,840 300 500 300 182 216 164 1,114 1,123 1,188 77 117 188 399 362 367 1971 - Aug. Sept. Oct. 4,556 n. a. n.a. 3,930 3,586 n.a. 1,000 1,100 900 415 272 n.a. 2,391 2,122 1,992 124 92 626 n.a. 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 2,258 2,130 1,977 85 155 200 131 232 24 97 154 38 25 23 72 130 132 n. a. Seasonally Adjusted 1970 - Aug. Sept. Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May June July Aug. ' Sept. Oct. 1 1,919 2,196 2,128 2,049 2,604 1,860 2,097 2,988 2,939 3,280 4,177 4,259 4,404 n.a. n.a. 1,511 1,832 1,808 1,820 2,504 1,893 2,184 2,996 2,018 3,273 3,972 3,898 3,770 3,486 n. a. 268 329 295 224 312 383 445 688 653 840 1,197 969 972 922 896 175 245 138 176 250 175 217 380 283 313 413 373 410 302 n.a. | 408 364 320 229 100 -33 -87 -8 -79 7 205 361 634 n.a. 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-g^ouos accounted for 84 per cent of the net increase estimated for all holders in 1^70, 19 TABLE 13: Net Increases in Mortgage Debt Outstanding 1 Billions of dollars, SAAR QUARTER TOTAL RESIDENTIAL 3 1- to 4FAMILY MULTIFAMILY MULTI-AND COMMERCIAL 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 1.5 1.5 2.1 2.1 36.3 47.6 25.9 36.4 17.7 26.2 8.2 10.2 16.3 19.1 2.2 2.3 1971 - Ip up 2 3 8.1 8.9 = A 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 " A u c t i o n " Results WEEK ENDED COMMITMENTS IN $ MILLIONS IMPLICIT YIELD 2 <per cent) ACCEPTED 3-4 1 -YEARN months 1-YEAR 1 TOTAL TOTAL 663 1 / & OVER OFFERED MONTH 1/ xao.lt MONTH & OVER 1971 - July 26 686.2 183.4 183.4 -- Aug, 25 634.6 153.5 153.5 — Sept. 7 20 445.2 437.5 188.6 193.0 188.6 193.0 4 18 365.1 219.8 194.8 103.6 194.8 103.6 1 15 126.0 145.3 56.4 102.0 56.4 102.0 Oct. Nov. -- 8.07 — 7.97 -- 7.88 7.86 — —— 7.85 7.83 -- — 7.77 7.70 — — - • -- —- — • Note: IJnder the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments. 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 are gross, before deduction of 38 basis points fee paid by investors to servicers. Short-term commitments converted from a 3 to a 4 month basis beginning October 18, 1971. 21 TABLE 15: Private Housing Starts and Permits STARTS DATE SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE TOTAL UNADJUSTED TYP E OF FINANCING FHA VA OTHER BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE)2 ) - Oct. Nov. Dec. 1,583 1,693 2,054 890 934 1,240 693 759 814 140.9 126.9 121.4 40.4 33.7 63.2 5.8 5.5 5.7 94.7 87.2 52.5 1,523 1,487 1,768 L - Jan. Feb. Mar. Apr. May June July Aug. r/ Sept. r/ Oct. j>/ 1,725 1,754 1,959 1,912 1,975 2,000 2,229 2,258 1,948 2,050 946 985 1,048 1,098 1,124 1,177 1,187 1,212 1,175 1,152 779 769 911 814 851 823 1,042 1,046 773 898 110.6 102.2 167.9 201.1 198.5 193.8 194.3 204.5 169.5 182.0 32.2 27.3 33.4 44.6 40.7 46.1 42.9 45.8 48.3 4.6 4.7 6.9 8.5 8.4 9.3 9.2 9.4 8.7 8.1 72.8 68.4 127.6 148.0 149.4 137.8 142.2 149.3 112.5 1,635 1,563 1,627 1,638 1,927 1,849 2,052 2,006 1,900 2,215 1 2 Total starts are Census estimates including farm for both permit-issuing and nou-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 ate not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages. Building permits before January 1963 are Census 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 beginning January 1967 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. TABLE 16: Mortgage and Bond Yields FHA MORTGAGES 30-year CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON CONV. & FHA MORT* GAGES 5 1 NEW Aaa CORPORATE BONDS SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 6 1969 - High Low 8.62 7.99 8.35 7.55 1970 - High Low 9.29 8.40 1971 - High Low 7.97 7.32 7.95 7.55 •1971 - May June 7.75 7.89 7.65 7.70 -.10 8.01 -.19 7.90 July Aug. Sept. 7.97 7.92 7.84 7.80 7.85 7.85 -. 17 -.07 .01 7.96 7.65 7.44 .27 .40 Oct. 7.75 7.80 .05 7.29 .46 1 2 3 4 5 6 -.13 -.40 8.75 6.91 8.60 -.10 8.30 -.74 9.11 7.80 .28 8.01 -. 19 7.24 1.08 -.13 .99 .01 .40 -.36 -.26 -.01 .01 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 tftan 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, and 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. . j i \ \ I -23 TABLE 17: Conventional Mortgage Terms NEW HOMES DATE CON- FEES & TRACT CHARGES EFFEC- MATURITY (YEARS) (PER RATE TIVE CENT) RATE (PER CENT) 3 2 LOAN/ PRICE LOAN RATIO AMT. (PER ( $ 0 0 0 ) CENT) 1 EXISTING HOMES CON- FEES & LOAN/ TRACT CHARGES EFFEC- MATU- PRICF. (PER RATE TIVE RITY RATIO CENT) RATE (YEARS) (PER (PER CENT) CENT) 2 3 LOAN AMT. ($000) 1970 Oct. Nov. Dec. 8.33 8.26 8.20 1.05 0.99 1.07 8.51 8.43 8.38 25.1 25.3 25.8 72.4 72.1 73.8 24.8 8.20 25.2 8.18 25.8 8.12 0.88 0.85 0.85 8.35 8.32 8.26 22.8 22.7 23.3 71.5 71.5 71.9 20.5 21.1 21.7 8.03 7.74 7.52 7.37 7.36 7.38 7.51 7.60 7.67 7.67 0.92 1.00 0.83 0.73 0.71 0.74 0.90 0.84 0.97 0.96 8.18 7.91 7.66 7.49 7.47 7.50 7.66 7.74 7.83 7.83 25.8 26.2 25.9 26.3 26.1 26.3 26.3 26.2 73.3 73.9 73.7 73.6 74.0 73.7 74.5 73.9 75.3, 75.6 26.4 26.2 26.0 26.2 26.7 27.2 27.1 26.5 25.9 26.3 0.82 0.79 0.77 0.75 0.71 0.74 0.75 0.76 0.78 0.78 8.08 7.80 7.60 7.47 7.45 7.50 7.63 7.71 7.76 7.75 23.5 24.0 24.1 24.2 24.0 24.3 24.2 24.5 24.2 24.2 72.5 73.1 73.5 73.6 73.2 73.9 74.5 74.2 74.5 74. 6 22.0 22.5 23.0 23.1 23.3 28.3 23.2 23.5 1971 Jan. Feb'. Mar. Apr. May June July Aug. Sept. Oct. 25.8 26.5 .7.94 7.67 7.47 7.34 7.33 7.38 7.50 7.58 7.63 7.62 22.5 23.0 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.
@FedFRASER