Full text of H.16 Capital Market Developments : November 27, 1972
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
( DECONTROLLED AFTER SIX M O M S f of Confidential f i l (F.R.) November 2 7 , v V- \ CAPITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. rr- 1972 INDEX D e v e l o p m e n t s in t h e C o r p o r a t e and M u n i c i p a l Bond M a r k e t s C a p i t a l Market Y i e l d s C a p i t a l Market V o l u m e Stock M a r k e t 1 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 WEEK ENDING: YIELDS MOODY'S NEW ISSUE SEASONED 1 Aaa BT&LITf 7.44 7.23 7.48 7.22 7.30 7.21 7.34 7.19 1972 - Oct. 6 13 20 27 Nov. 3 10 17 24 7.12 6.99 1 n.a. Dec. 7.28 —* CORPORATE BOND MARKET 2 VOLUME PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 7.18 7.16 7.12 7.09 433 171 564 395 88 69 80 49 n.a. n.a. n.a. n.a. 120 125 170 366 100 75 79 74 n.a* n. a. n.a. n.a. 675e n.a. MUNICIPAL BOND MARKET VOLUME 2 YIELDS PER CENT BOND BUYER MOODY'S GROSS SOLD BY END SEASONED 20 "NEW ISSUE OF WEEK Aaa BOND INDEX - OFFERINGS WEEK ENDING: n.a. BONDS SCHEDULED WITHIN 28 DAYS 1972 - Oct. 6 13 20 27 5.05 5.00 - 5.05 5.00 5.22 5.16 5.23 5.13 382 707 474 334 93 82 66 75 993 690 749 679 Nov. 3 10 17 4.90 5.00 5.04 5.10 340 331 71 39 654 1,548 4.90 4w85 5.01 4.96 457 352 85 84 . 1,431 1,279 24 Dec. 1 n.a. J 405e n.a. 1 New series derived by adjusting to a Aaa utility 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 ), For additional details and back data, see the September 1972 issue of the Federal Reserve Bulletin. The Aaa corporate yield series previously published in the L.5.8 has been discontinued. 2 Millions of dollars unless otherwise indicated. NOTE: See footnotes to Table 3. TABLE 2: Details on Inventories DATE OFFERED AMOUNT (MIL. $) 11/14 11/20 11/20 OFFERED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND ISSUER COUPON YIELD CALL PROTECTION 50.0 75.0 50.0 RELEASED Fla Pwr Mich Bell Mich Bell 7.17 6.35 7.07 Aa Aaa , Aaa 5 yrs 5 yrs 5 yrs 50% 45% 10% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER COUPON IN YIELD CALL PROT. PORTION RELEASED YIELD AMOUNT DATE 1972 - Nov. - 7 1/4 6 1/4 7.00 ESTIMATED PROPORTION SOLD 3 10 17 24 INVENTORIES 1 MUNICIPALS BLUE LIST IN SYNDICATE 963 TTT 917 254 947 126 858 136 CORPORATES IN SYNDICATE a — 31 36 121 N.C. - No call protection. 1 All figures in millions of dollars. Blue List is daily average for week ended F r i d a v , e x c e p t vhich i f daily average of three days ended Wednesday. All other figures are as of Friday. for latest - x-ek TABLE 3: High Grade Bond Yields U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 ,7.55 (5/29) 6.17 (12/18) 1970 - High Low NEW ISSUE Aaa UTILITY 9.43 (6/19) 7.72 (12/11) MOODY'S SEASONED CORPORATE Aaa 2 8.60 (7/3) 7.48 (12/21) 1971 - High Low 8.26 (7/30) 7.02 (2/5) 7.71 (8/13) 7.06 (2/12) 6.51 (6/18) 5.69 (3/23) 1972 - High Low 7.60 (4/21) 6.99 (11/24) 7.36 (4/28) 7.09 (11/24) 6.19 (4/14) 5.74 (11/17) 7.28 7.18 7.16 7.12 7.09 5.89 5.80 5 . 74 5.76 DATE 1972 - Nov. 1 3 10 17 24 -- 7.12 6.99 BOND BUYER'S SEASONED MUNICIPALS 4 1-12 (5/29) 5.33 (12/11) 6.23 (6/23) 4.97 (10/21) , - 5.54 (4/13) 4.96 (11/24) 5.04 5.10 5.01 4. 96 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 1 falls midway between the four top groups as classified by Moody's Investors Service. Note--Highs and lows are for individual series and may be on different dates for different series. TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS CORPORATE 1 PERIOD STATE AND LOCAL 2 1972 1971 1970 1972 1971 January February March 3,205 3,369 3,229 3 ,115 3 ,000 6 ,075 2 ,636 1 ,802 3 ,539 1,776 2,002 2,237 2,732 1,851 2,258 1 ,340 1 ,214 1 ,555 April May 3,275 3,598 4,341 4 ,042 3 ,300 •'4,375 3 ,170 3 ,909 3 ,389 1,988 2,002 1,891 2,167 2,013 1 ,647 996 1 ,085 July August September 3,582 3,013 2,750 4 ,147 2 ,532 3 ,768 2 ,768 2 ,274 3 ,518 1,989 1,90) 2,098 1 ,348 1 ,359 1 ,758 October November December 3,500 3 ,387 3 ,704 3= ,673 3 ,777 4 ;,182 3 ;,980 l,850e 1,726 2,264 27068 1 ,924 1,,748 2,,190 9,803 11,214 9,345 12,,190 11,,688 10,,447 10,,764 ,977 73 10,,468 8,,560 11,,939 6,015 6,250 5,444 6,841 6,081 5,990 6,060 4,,109 3,,728 4,,465 5, 862 21,017 30,362 23, 844 34, 325 45, 089 18, 445 27, 005 38, 944 12,265 17, 709 12,912 18,902 24,962 7, 837 12,302 18, 164 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1 2 j 2,260 ! 1,800 1,951 J 1,693 1970 Securities and Exchange Commission 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 TOTAL GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND MEMO: BONDS PUBLICLY PRIVATELY PFD. ISSUES INCLUDED MFG. STOCK FOREIGN | CONVERTIBLE OFFERED PLACED GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS 1 1971 - II III IV 11,688 10,447 10,764 6,546 4,725 5,135 1,758 1,641 2,439 3,384 4,079 3,193 215 114 133 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 1,476 1,369 4,541 4,240 2,701 856 4,038 3,781 1,966 615 1,200 18 293 1,141 1,084 281 1,275 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 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 - Sept. Oct. Nov. Dec. 1972 - Jan. Feb. . Mar. Apr. May June July Aug. Sept. Oct. e/ 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 available. 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. 6 through Nov. 24 ISSUER Corporates First Nat'l City Corp Arizona Pub Svc Louisiana pwr & Lt Texas Oil & Gas Fla Pwr Corp Southern Co Delmarva Pwr & Lt Fla Pwr & Lt Lomas Nettleton Mortgage Commonwealth Edison Third National Corp Great Am Mtg Texas Industries South Carolina Elect & Gas New England Pwr. Michigan Bell Tele Michigan Bell Tele Tenneco Offshore Englehard Minerals & Chem Wells Fargo & Co. TYPE2 Bonds Com stk Bonds 1st mtg Bonds Cm st Cm st Pref Bene int Pref Bonds Deb Debs w/w Com stk Pref stk Debs Notes Conv debs Conv debs Debs 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 26 5 15.1 75.0 50.0 95.0 50.0 75.0 MATURITY 1980 -- 2002 1992 2002 COUPON RATE OR NET INTEREST COST OFFERING YIELD 6 . 63 6.67 7.35 7.38 7.17 -- -- -- -- — — 7.27 -- 2002 1979 1992 7.20 — 7.48 7 1/2 7.55 • 7 3/4 MOODY'S RATING • -- - - 7 1/2 7 3/8 7 1/4 1972 7.30 7.56 7.55 7.75 A ' A Aa — — — — — --- Baa --- 2012 1978 1980 1996 1996 7 24 7.00 6 1/4 6.00 5 1/4 7 3/8 7.15 7 08 6. 35 6.00 5.25 7.38 Aaa Aaa -- Ba TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 ISSUER State and Local Penna, State of Collier County-Wide S/D, Fla. Connecticut, State of Jackson, Miss. Pennsylvania Ohio Kent State Univ., Ohio Kent State Univ., Ohio Denver City and Co., Colo., University of Calif Columbus, Ohio Tyler, Texas Hartford, Conn Hartford, Conn. Dallas ISD, Texas Indus.Dev. Bd. of City of Fairfield, Ala. Indus. Dev. Bd. of City of Fairfield, Ala. Riverside, Calif Civic Auth Michigan New York State Housing Finance Agency TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY Rev. G.O. G»0. 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 Rev. 125.0 Rev. .0. 15.0 15.1 50,0 .0. 177.0 G.O. G.O. G.O. G.O. G.O. G.O. G.O. G.O. G. 0. MX*. Nov. 6 thru, Nov.24# 1972 COUPON | RATE OR | OFFERMOODY'S NET INTER- 1 JNC RATING EST COST j YIELD 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 1974-1987 -- 3.30-4.90 1997 1975-2002 1974-1992 5.04 4.35 3.10-4.70 5.49 3.40-5.50 1974-2016 4.82 5.03 3.97 4.65 4.82 4.94 —w 5.20 A-1 Baa-1 Aaa A-l A-l Aaa A A Aa A-l Aa A-l Aaa Aa Aa Aa Aa .. A Aa A T A B L E 6: L a r g e Long-term P u b l i c Security I s s u e s for New C a p i t a l ( c o n t i n u e d ) (Other than U.S. T r e a s u r y ) 1 AMOUNT (MILLIONS 1 ISSUER S t a t e and L o c a l Miami, Fla Baltimore Co., M d , S o u t h JBrovzard H o s p i t a l D i s t . , Fla. TYPE 2 OF DOLLARS) MATURITY <5.0. Rev, 12.6 28.0 1974-1992 1997 Rev. 11.5 — COUPON | R A T E OR ! OFFER-'' N E T INTER- ! IiX EST C O S T YIELD 4.41 WW MOODY'S RATING 3.15-5.40 mm 4.25-6.00 Rights offering. I n c l u d e s c o r p o r a t e and other security offerings of $15 m i l l i o n and over; State and local security o f f e r i n g s of $10 m i l l i o n and o v e r . In case of S t a t e and local government s e c u r i t i e s , G . O . denotes general obligation; •<ev.-Ut. , revenue o b l i g a t i o n s secured only by income from public utilities; R e v . - Q . - U t . , revenue bonds secured only by income from q u a s i - u t i l i t i e s ; R e v . - S . T . , r e v e n u e b o n d s secured by revenue from specific t a x e s only; R e v . - R e n t . , revenue b o n d s secured solely by lease p a y m e n t s . I n c l u d e s foreign government and International B a n k for R e c o n s t r u c t i o n and D e v e l o p m e n t issues and non-quaranteed issues by Federal A g e n c i e s . A-l Aa Baa-1 11 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 ISSUER Corporates Appalachian Pwr. *Centennial Corp Detroit Edison Cameron Financial Corp American Tele & Tele First Tenn National Corp Kentucky Utilities Duke Pwr. Pacific Gas & Elect Tampa Elect First Va. Bankshares Corp Arkansas Pwr & Lt. Arkansas Pwr & Lt. San Diego Gas & Elect United Tele of Fla. Gen'l Public Utilities Georgia Pwr Union Electric Duquesne Light Duquesne Light *McCulloch Prop Credit •Guardian Mtge Investors National Rural Util Coop Fin *First Nat *1 Boston *BankAmerica Zapata Exploration Co. Maine Yankee Atomic Maine Yankee Atomic TYPE Bonds Conv debs Pref stk Debs Bonds Debs Bonds Bonds Pref stk Com stk Bonds Bonds Pref stk Com stk 1st mtge Com stk Bonds Pref stk Bonds Com stk Bonds Bonds 1st mtge Bonds Bonds Conv debs Bonds Pref stk AMOUNT (MILLIONS OF DOLIARS) 70.0 25.0 75.0 40.0 500.0 25.0 35.5 75.0 50.0 15.0 25.0 15.0 20.0 27.0 15.0 30.0 150.0 55.0 40.0 35.0 30.0 25.0 50.0 100.0 100.0 25.0 15.0 15.0 APPROXIMATE DATE OF OFFERING Nov. Nov. Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. INDEF INDEF Jan. Jan. 28 28 29 29 30 30 4 5 5 5 5 6 6 6 7 7 12 13 14 14 15 12 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) N o v . 24, ISSUER • State and Local Memphis, Tenn Philadelphia, Pa. Hartford Co., Md. University of Puerto Rico Tucson, Arizona Mass Health & Ed. Facil. Auth. Anne Arundel Co., Md. Nassau Co., N.Y. Indianapolis, Ind. Airport Authority Guam Pwr Auth Great Chicago Metro Sanit. Dist., Ill Flat Rock, Mich Dallas, Texas Hartford, Conn *Plano ISD, Texas Prince Georges Co., Md. H • A. A. New York City Los Angeles Parking Auth, Cal. University, Texas *Newark, N.J. *Penna Higher Ed. Fac. Auth New Jersey Finance Agency Los Angeles DWAP Richmond, Va. Oklahoma Cap. Imp Auth Atlanta, Ga. Airport Monroe Co., Mich Pol.control * I TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING Rev. G.O. G.O. Rev. Rev. G.O. G.O. G.O. 50.0 49.9 10.0 28.0 28.5 12.5 13.0 13.0 Nov.. Nov. Nov. Nov. Nov. Nov. Nov. Nov. 28 28 28 28 28 28 29 29 G.O. Rev. 10.0 25.0 Nov. Nov. 29 30 20.0 25.0 28.5 25.0 10.0 32.5 282.5 300.0 26.9 17.0 20.0 14.4 49.0 116.2 38.0 13.5 38.5 57.0 Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 30 Rev. Ind Dev. Rev G.O. G.O. G.O. G.O. Bonds G.O. Ref Rev. Rev. G.O. G.O. Rev. Rev. G.O. Rev. Rev. Rev. 1972 4 5 6 6 7 7 9 12 12 13 13 28 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. 13 STOCK PRICES AND VOLUME STOCK PRICES 1 - TRADMG VOLUME2- 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 (5/26) 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) 79.7.&7( 11/23) 22.72 (1/4) 22.1 (2/12) 11.0 (9/17) 6.7 (2/5) 2.7 (8/13) 1972 - High Low 56.23 (1/3) 21.8 (11/10) 11.2 (9/8) 7.4 (3/10) 2.6 (9/8) 64.12 (11/24) L025.21 (11/24 •28.53 (4/14) 889.30 (1/3) 25.61 (1/3) 1972 - Oct. 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 3.1 2.6 2.9 3.3 Nov. 3 10 17 24 62.52 62.33 63.25 64.12 984.12 995.26 L005.57 1025.21 26.14 26.14 26.15 26.32 18.4 21.8 20.1 19.8 4.0 4.3 4.2 4.2 , : NOTES: Figures other than highe 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, 1969j July 7, 1969 January 2, 1970 4. July 3, 1969 December 31, 1969 May 1, 1970 Average dollar value of shares listed. 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 u END OF PERIOD TABLE 9: Security Credit CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 | BANKS 2 | TOTAL CUSTOMERS' NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY BROKERS AND FREE CREDIT DEALERS 3 BALANCES Outstanding: 1971 - July 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) (4) (4) (4) (4) 2,210 2,200 2,100 2,160 2,170 2,220 1972 - Jan. 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 - July Aug. Sept. Oct. Nov. Dec. 70 60 80 20 -40 490 30 10 100 70 80 -20 -10 40 -50 530 1972 - Jan. Feb. Mar. Apr. May June July 300 480 440 390 190 310 150 50 20 10 10 30 90 50 350 500 450 400 220 400 200 . (4) (4) (4) (4; (4) (4) (4) (4) (4) (4) (4) (4) (4) 3hange in Dutstanding; 1 2 3 -- — — -— — — — — — -— 230 -10 100 60 10 50 268 54 -30 -53 -129 -99 14 — — — --— — — — — — -- 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 securities 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 regulated or not. 4 FRASER Series discontinued Digitized for TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE 1969 1970 1971 MUTUAL SAVINGS BANKS REGULAR DEPOSITS 3 NET NEW ANNUAL MONEY 2 GROWTH NET 1 FLOW RATE 2,549 4,517 9,623 1971 - August September October 1972 - August 2./ September October e/ 1972 - April May June July August September j-J October e/ 4.0 6.8 13.5 -763 936 5,678 300 793 382 418 1,025 475 —— — 820 576 937 798 665 917 704 11.7 8.2 13.2 11.1 9.2 12.6 9.5 SAVINGS & LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL MONEY2 NET GROWTH 1 FLOW RATE Not Seasonally Adjusted 4,068 3.1 -1,003 10,965 8.1 5,285 28,244 19.4 20,652 195 105 224 1,538 2,670 1,600 310 223 n.a. 1,801 3,395 2,054 -— -— 2,704 1,814 2,849 3,432 2,232 2,832 2,538 —— .... 17.6 11.7 18.2 21.5 13.7 17.3 15.2 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 1,052 1,091 1,504 1,409 3,463 1,982 1,247 1,196 1,728 1,708 1,494 2,219 4,420 2,529 2,018 1,717 -—— — «• mm mm —— 3,524 15.8 2,390 3,786 4,230 2,897 3,759 3,242 10.5 16.6 18.3 12.3 15.8 13.5 " 1 2 3 Annual growth rate for monthly data is the annualized monthly percentage increase in deposits. Net New Money is new deposits net of both withdrawals and interest. Data for 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. '• \ • mm __ 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) (Billions of Dollars, Sea sonally Adjusted) >72 Sept. Oct. Nov. Dec. , 16.4 16.3 16.6 16.6 13.2 13.1 -13.2 13.1 Jan. Feb. Mar. Apr. May 17.0 18.3 19.5 20.5 21.7 21.7 22.0 22.7 23.3 13.3 14.2 15.2 16.0 17.1 17.2 17.5 18.0 18.3 July Aug. r/ Sept. 1 3.2 3.3 3.4 3.6 3.7 4.1 4.3 4.5 4.6 4.5 4.5 4.7 5.0 .07 .02 .20 .09 .30 1.34 1.19 . .99 1.22 .40 .33 .67 .59 -.07 -.05 .08 -. 06 . 14 .07 .12 . 15 .12 .97 .97 .79 1.13 .48 .39 .42 .33 . 18 .37 .22 .20 .09 -.08 -.06 .25 .26 Based on data from Federal Home Loan Bank Board and Savings Banks Associations of New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. 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. 17 TABLE 12: Net Change in Mortgage Holdings 1 DATE TOTAL INCLUDING FNMA-GNMA TOTAL FINANCIAL INSTITUTIONS SAVINGS & MUTUAL SAVINGS LOAN COMMERCIAL ASSOC. BANKS BANKS LIFE INSURANCE COMPANIES FNMA-GNMA, Not Seasonally Adjusted 1968 1969 1970 1971 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, , 7 8 7 2 ., 6 8 2 1., 8 4 5 3 ,938 9,350 9,561 10j172 24,160 2,459 2,052 2,348 1,221 1 9 7 2 - May June July Aug. Sept. 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 2,720 3,453 2,758 3,313 2,888 24 5479 97 90 3,758 400 306 329 465 522 2,252 2,122 1,977 2,058 2,357 105 114 77 77 378 512 466 390 302 242 272 296 486 390 455 533 365 537 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. Seasonally Adjusted 4,270 1 9 7 1 - Aug. 4,007 Sept.r/ 3,747 Oct. , 3,745 Nov. 4,323 Dec. 3*357 3,443 4,081 1,001 999 ' 974 843 824 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 1 9 7 2 - Jan. Feb. Mar. Apr. May June July Aug. Sept. • • e 18 TABLE 13: Net Increases in Mortgage Debt Outstanding 1 Billions of dollars, SAAR TOTAL RESIDENTIAL 3 1- to 4FAMILY - I II III IV 16.0 20.8 26.3 27.2 10.3 14.0 18.9 19.7 7.0 10.6 15.1 15.9 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 1968 - I II III IV 28.1 19.4 16.2 3.2 3.2 3.5 3.9 6.4 2.3 6.6 9.5 9.2 10.1 7.3 11.2 18 1.9 4,4 4.7 4.7 5.3 6.1 10.5 10.1 2.2 2.2 10.5 1.7 1.4 4.8 4.6 5.2 6.7 9.9 9.9 11.5 13.2 1.5 1.5 2.1 2.2 8.1 8.3 9.4 11.2 2.3 2.3 2.5 2.9 - QUARTER 26.4 25.8 29.4 1969 - I II III IV 31.8 29.1 1970 - I II III IV 20.6 22.9 29.1 31.3 1971 - I II III IV 37.1 47.8 53.6 53.4 1972 - I II Ille 61.2 64.9 26.2 24.9 66.2 18.2 ^17.4 20.2 23.6 21.5 19.0 18.2 14.2 16.9 15.0 13.9 16.3 19.2 16.8 14.4 13.0 9.1 11.5 15.5 MULTIFAMILY COMMERCIAL . MULTI-AND COMMERCIAL 6.0 5.4 5.4 5.2 2.2 10.0 22.5 16.0 5.1 5.4 6.3 6.5 26.6 36.1 40.1 40.1 18.5 26.4 31.4 31.4 9.7 8.7 8.7 10.8 16.3 19.1 19.9 19.5 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 21.8 FARM 2.2 2.6 2.6 ••••I oniy and is - ^ <-»•/ TABLE 14: FNMA Weekly " A u c t i o n " Results WEEK ENDED COMMITMENTS IN $ MILLIONS ACCEPTED TOTAL 90TOTAL 1-YEARH 6OFFERED DAY M0NTH & OVER July 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 15JL.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 IMPLICIT YIELD^(per cent) 90DAY 6M0NTH 1-YEAR & OVER __ -- 7.62 7.62 — — -- 7.63 7.62 - - 7.63 7.65 -- -- 7.69 7.72 7.72 - -- — -- — 1 7.71 Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitmentsAverage secondary market yields 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. 20 TABLE 15: Private Housing Starts and Permits STARTS DATE 1971 - October November December 1972 - JanuaryFebruary March April May June July r/ Augusc r / September p/ October SEASONALLY ADJUSTED ANNUAL RATE T O T A L 1-FAMILY 2 OR MORE 1,155 1,242 1,347 882 985 1,110 1,415 2,487 2,682 - 1,325 1,302 2,369 1,167 2,109 2,350 1,344 1,296 2,330 1,289 2,218 1,410 2,484 2,366 1,371 1,071 1,357 1,067 942 1,006 1,034 929 1,074 1,613 1,288 1,122 2,038 2,228 2,457 2,410 TOTAL ' UNADJUSTED TYP E OF FINANCING FHA VA OTHER 179.7 176.4 152.1 38.5 47.2 85.4 8.1 9.1 7.4 133.1 120.1 59.3 1,983 2.051 2,142 150.9 153.6 205.8 213.2 227.9 226.3 205.0 228.2 200.8 37.4 27.8 37.7 29.1 32.4 31.9 26.2 30.3 7.5 8.0 10.5> 8.5i 9.4 9.6 9.4 9.8I 106.0 117.8 155.7 172.9 186.1 184,8 171.9 188.0 29.3 8.9» 162.6 2,204 2,056 2,007 1,991 1,955 2,121 2,108 2,237 2,265 — 2,218 - — - # 0 # other differences in timing and coverage. BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 21 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES DATE 30-year 2 1 CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON C0NV. & 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 - Jan. 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 7.57 7.70 .13 7.38 .19 October 1 2 3 4 5 6 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. Separate data available for 25-year and--beginning July 1961--30-year mortgages with minimum downpayments, weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year mortgages. Based on FHA-field-office opinion on typical contract interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring offices. 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. 22 TABLE 17: Conventional Mortgage Terms NEW HOMES FEES & CONTRACT CHARGES EFFEC- MATURITY (PER (YEARS) RATE TIVE CENT) RATE (PER CENT) 3 2 LOAN/ PRICE RATIO (PER CENT) LOAN AMT. ($000) EXISTING HOMES FEES & CONLOAN / CHARGES EFFECMATU TRACT PRICK (PER RATE RATIO RITY TIVE CENT) RATE (YEARS) (PER (PER CENT) CENT) 2 3 LOAN AMT. ($000) 1971 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 7.62 7.45 7.38 7.38 7.40 7 .41July 7.43 Aug. 7.45 Sept. r/ 7.43 Oct. £ / 7.48 0.95 7.78 7.61 7.52 7.51 7.53 7.55 7.56 7.59 7.57 7.62 July Aug. Sept. Oct. Nov. Dec. 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 75.0 76.5 76.2 76.0 76.2 76.5 77.0 77.5 77.5 77.4 27.6 27.8 7.45 7.35 7.31 7.30 7.33 7.36 7.37 7.39 7.42 7.43 0.75 0.76 0.78 0.79 0.79 0.78 7.63 7.71 7.76 7.75 7.69 7.64 0.82 7.58 7.48 7.44 7.42 7.46 7.49 7.50 7.52 7.55 7.56 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 74.7 75.8 75.6 75.3 75.4 76.1 24.1 24.8 24.4 24.9 24.6 25.2 76.2 76.5 76.5 75.9 25.2 25.4 24.8 24.7 1972 Jan. Feb. Mar. Apr. May 1.02 0.84 0.83 0.84 0.85 0.83 0.86 0.86 0.88 26.5 27.0 27.2 27.2 27.2 27.2 27.2 27.5 27.3 27.2 28.2 28.5 28.5 27.8 28.2 27.9 27.9 27.4 0.79 0.77 0.78 0.77 0.78 0.83 0.81 0.83 0.82 24.7 25.4 25.1 25.2 25.2 25.5 25.6 26.3 26.2 25.9 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 lohn 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