Full text of H.16 Capital Market Developments : November 29, 1971
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L.S.I (F.R ) C O N T R O L L E D AFTER SIX MONTHS MARKET-x DEVELOPMENTS o. c November 29, 1971 INDEX 3-5 D e v e l o p m e n t s in the Corporate and Municipal Bond Markets 6-7 Capital Market Y i e l d s 8-13 Capital Market Volume 14-17 Stock Market 18-33 Mortgage Market SYMBOLS: e Estimate p Preliminary r n.a. Revised Not a v a i l a b l e TABLE 1: Yields, Volume and Reception WEEK ENDING: YIELDS MOODY'S SEASONED 1 NEW ISSUE Aaa CORPORATE BOND MARKET VOLUME;2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 1971 - Oct. 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 n.a. n.a. n.a. n.a. Nov. 5 12 19 26 7.05 7.12 7.23 7* 17 7.25 7.24 7.27 7.28 552 584 488 183 80 79 68 74 ja.a. 3 n. a. n.a. 250e n. a. n.a. Dec. WEEK ENDING: YIELDS MOODY'S BOND BUYER SEASONED SEASONED 20 Aaa BOND INDEX n. a. n.a. MUNICIPAL BOND MARKET VOLUME 2 GROSS OFFERINGS PER CENT SOLD BY END OF WEEK BONDS SCHEDULED WITHIN 28 DAYS , 1971 - Oct. 8 15 22 29 4.80 4.65 4.65 4.90 5.17 4.99 4.97 5.11 368 327 455 547 75 68 57 68 833 1,180 1,290 1,337 Nov. 5 12 19 26 4.75 4.90 4.95 5.15 4.99 5.19 5.25 5.36 383 696 863 185 66 66 69 74 1,584 1,245 1,180 n.a. 3 n.a. n. a. 390e Dec. n.a. n.a. 1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial and convertible issues, offerings of natural gas pipeline and foreign companies, and bonds guaranteed by the Federal Government.) 2 Millions of dollars unless otherwise indicated. Note: See footnotes to Table 3 DATE OFFERED j 11/22 11/18 11/17 11/15 11/15 11/11 11/10 11/9 11/9 OFFERED r: AMOUNT (MIL. $) 1 95.0 25.0 12.0 75.0 100.0 50.0 60.0 50.0 25.0 DATE | RELFASED 11/3 11/8 11/23 11/23 T A B L E 2: D e t a i l s on I n v e n t o r i e s CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND ISSUER COUPON YIELD CALL PROTECTION Ga Pwr Gen'l Tejfrof SE Continental Tel So. Central Bell So.\ Central Bell New York St. E&G Cincinnati G&E Honeywell Fin Jersey Cent. P&L 7-5/8 8.00 8.00 6.75 7-3/8 8-5/8 7-3/8 7.00 8.00 7. 54 7. 90 7. 95 6. 60 7.45 7. 50 7. 29 6..95 7.,89 Aa Baa Baa Aaa Aaa Aa ' Aaa N.R. A 5 5 5 5 5 5 5 7 5 yrs yrs yrs yrs yrs yrs yrs yrs yrs 30.0 60.0 Dallas P&L Consumers Pwr 7-3/8 7.50 7.23 7.35 +19 +18 INVENTORIES 1 MUNICIPALS BLUE LIST 1 IN SYNDICATE Aaa Aaa 29 946 310 332 5 12 19 26 892 901 979 1,108 218 360 453 280 158 214 288 145 All call 5 yrs 5 yrs 50% 50% CORPORATES IN SYNDICATE Nov. - No 90% 75% 98% 60% 40% 90% 98% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK i ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER COUPON IN YIELD CALL PROT. PORTION RELEASED YIELD 1971 - Oct. N.C. 50% 50% AMOUNT DATE l ESTIMATED PROPORTION SOLD protection. figures in m i l l i o n s vhicti is d a i l y a v e r a g e of of dollars. three days Blue List is d a i l y ended W e d n e s d a y . a v e r a g e 'for w w k All other figures ended are as Friday, vxcvpt of Fridav. for l.abust T A B L E 3: High G r a d e Bond Y i e l d s NEW CORPORATE Aaa 1 MOODY'S SEASONED CORPORATE Aaa 2 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) 7.05 7.12 7.23 7.17 7.25 7.24 7.27 7.28 5.79 5.84 5.83 5.93 4.99 5.19 5.25 5.36 - DATE x Nov. 5 12 19 26 . 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. Weekly average of daily figures. 3 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. Note--Highs and lows are for individual series and may be on different dates for different series. \ 1 TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) • GROSS PROCEEDS CORPORATE l PERIOD STATE AND LOCAL 2 j 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 2,706 1,839 2,156 1,340 1,214 1,555 1,262 987 538 April May June 4,007 3,271 4,375 3,170 3,909 3,389 2,748 2,076 2,530 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 A,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 19,994 | !| 12,796 18,713 26,744 j 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 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 GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND MEMO: BONDS ISSUES INCLUDED PUBLICLY PRIVATELY PFD. MFG. PLACED STOCK FOREIGN | CONVERTIBLE OFFERED GROSS PROCEEDS BY TYPE OF ISSUER . TOTAL 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 Il'Ie 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 1,083 709 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 2,417 391 683 532 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. r/ 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 1,146i 732 849 1,070 1,622 359 282 1,210 850 1,271 Oct. e/ 3,010 1,950 500 560 n.a. 210 800 410 1,300 1 1 898 V 500 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. \ 676 1,069 1,452 . TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 Nov. 1 through Nov. 26, 1971 ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) COUPON RATE OR NET INTEREST COST MATURITY OFFERING YIELD MOODY'S RATING Corporates Indianapolis Pwr & Light 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'1 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 Continental Illinois Properties Gulf States Uitl Co Gulf States Util Co Baxter Laboratories Inc 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 Co Cenco Instrument Corp Beneficial Standard Mtg Inv \ Com stk 1st mtg Conv sub Conv sub Com stk Debs Debs Debs Bonds Gen *1 & 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 Conv debs lb. 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 -- 1991 1996 7.72 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 . x — — 2001 7.42 — 1 " —— 7.88 6.50 4.25 -- 1996 9.00 — — -- 1991 " A — —— —— m — «• -- — 7.35 — Aaa -- 9.00 — — 7.50 7.50 -- -- -- 4.38 4.38 Ba -- -- 1978 2001 7.00 8.00 — 6.95 7.89 -- — -- —- — . -- Ba — — 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. Treasury) 1 V TYPE2 ISSUER Nov. 1 through Nov. 26 , 1971 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 Continental 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 American Medicorp Inc. Gulf South Mtge Inv Hycel Inc Georgia Pwr Co ITT RAYONIER Duqueshe Light Co Orange & Rockland Util Inc 1st mtg Debs Notes Debs Conv debs Conv debs Notes Debs 1st mtg Debs 1st mtg Debs Com stk Benf int Com stk 1st mtg Debs Bonds Com stk 50.0 25.0 75.0 100.0 100.0 15.0 35.0 25.0 80.0 20.0 25.0 15.0 15.3 15.0 11.6 95.0 50.0 35.0 17.1 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 2001 1996 1978 2007 1996 1996 1979 1996 2001 1991 2001 1991 7.50 8.00 6.60 7.45 6.50 6.75 7.30 7.95 7.675 7.875 7.90 6.75 • -— -- 2001 1996 2001 . 7.625 8.00 7.50 -- 7.54 8.00 7.54 -- . — Baa Aa -- Baa --- - — — -- Aaa Aaa Ba — ; Baa Baa Aa V : J <o 7 ) T A B L E 6: L a r g e L o n g - t e r m P u b l i c S e c u r i t y I s s u e s for New C a p i t a l ( c o n t i n u e d ) ( O t h e r t h a n U.S. T r e a s u r y ) 1 . • •- 1 ISSUER TYPE 2 ' AMOUNT (MILLIONS OF DOLLARS) MATURITY Nov. 1 through Nov. 26, 1971 COUPON 1 RATE OR MOODY' S j <>FFKRNET INTER- ! RATING IUC EST COST I .X1H-P State and Local Los Angeles DWAPS Los Angeles DWAPS Ohio, State of Washington Sub. Sanit, Dist., Md. Los Angeles Co, Flood Confer Dist, Calif Los Angeles Co, Flood Contr District, Calif New York State Mtge Agency New York State Mtge Agency California State of ^ Broward Co, Ela & Chicago Park District Lawton, Okla Lawton, Okla. Guilford Co, N.C. Puerto Rico Wtr Resources Auth •* Chicago City Sch Dist Port of Portland, Ore. Port of Portland, Oreg Georgia "Highway, Autti 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 Oklahoma Turnpike Auth Rev Rev G.O. G.O. z / G.O. G.O. Rev Rev G.O. Rev. G.O. G.O. G. 0. G.O. Rev. G.O. Rev. Rev. "Rev. G.O. G.O. G.O. Mtge Rev Rev Rev G.O. Rev. 25.2 100.0 23.0 1977-1996 4.86 4.86 5.00 3.50-4.180 1973-1992 1974-1995 4.28 4.59 2 . 8 5 - 5 . 15 3.10-4.185 Aa . Aa Aaa Aa 9.0 1972-2001 4.59 2.75-5. 10 Aa 2011 24.8 10.0 33.1 1974-1995 4.59 1996 -- 3 . 1 0 - 4 . 85 5.74 16.6 1972-1981 -- 3.10-4.50 150.0 1981-2021 5.13 4 . 0 0 - 5 . 25 Aa A A Aa 32.0 1974-3005 5.72 3.50-5. 90 —- 20.0 1972-1986 4.28 2.80-4. 70 1974-1997 4.45 3 . 0 0 - 4 . 75 A 1.8 10.0 1974-1997 1972-1994 4.46 4.44 50.0 1973-2004 5.52 3 . 0 0 - 4 . 75 2.70-4. 90 3.20-5. 50 Aa A 11.2 45.0 8.5 . 1973-1991 • 4.81 16.5 14.0 1973-1991 2006 1 9 /2 - 1 9 9 6 i 10.8 1972-1990 26.0 1972-^.996 43.0 1972-2019 10.0 1973-2010 11.7 1972-1994 1972-1976 1973-1995 1971-2004 1.7 10.4 74.0 5.77 3.00-5. 00 3 . 2 5 - 5 . 65 -« -- Baa Baa Aa 5.77 4.61 — 3.00-5. 10 -- 5.36 2.80-5. 10 2.90-5. 40 Aa Aa 5.59 3 . 2 0 - 5 . 75 —— 4.89 4.89 5.39 6.38 -—— • Aa Aa 3.40-5. 60 —— -- 2.70-4. 90 T A B L E 6: L a r g e L o n g - t e r m P u b l i c S e c u r i t y 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 t h a n U.S. T r e a s u r y ) 1 Nov. 1 through Nov. 26, 1971 I ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) COUPON . RATE OR MATURITY NET INTERES% COST | | 1 I;.( j Yll'vLD 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 Redel Agency Los Angeles Comm.Redel Agency Commonwealth of Mass Westmoreland Greater Chicago Metro Sanitary Dist., 111. Louisiana, State of Erie County, N.Y. Erie County, N.Y. Rev G. 0. G.O. G.O. G.O. G.O. Rev. G.O. G.O. G.O* ' Rev. G.O. Rev Rev G.O. Rev. G.O. 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 1 4.6 128.7 29.6 1975-1995 1972-1991 1973-1992 1972-1986 1972-2009 1972-1993 1972-1987 1973-2012 1973-2002 1973-2002 1972-1986 1972-2001 1972-1980 1985 1972-2020 1972-2000 25.0 55.0 8.6 5.4 1973-1991 1972-1991 1972-1988 1972-1980 5.298 4.524 5.56 5.684 4.632 4.849 6.799 6.563 4.479 4.922 5.02 5.10 4.574 4.893 4.899 4.50 4.00 . , 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 2.. 75-5.30 2,.70-5 .60 Baa Baa Aaa Baa Baa Aaa A A Baa Baa Aa A A A Aa A 2,.90-5 .20 A A Aaa Aaa 2, .75-5 .20 2, .80-5 .00 2, .70-4 .10 T A B L E 6: L a r g e L o n c j - t c i m P u b l i c S e c u r i t y I s s u e s for N e w 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 ) ' AMOUNT (MILLIONS OF DOLLARS) 1 TYPE 2 ISSUER MATURITY Nov. 1 COUPON ! RATE OR : NET INTEREST COST 1 Nov. 26, 1971 niTKRL\C MOODY'S RATING State and Local Other Export-Import Bank FNMA FNMA FNMA Rights In corporaLo and case local of and State and '<e v. - lit. , r e v e n u e revenue bonds secured Includes solely local bonds by by and offerings of $15 million of $10 million and government securities, G.O. secured secured revenue lease government issues security offerings obligations secured foreign Development other security Rev.-Q.-lit... r e v e n u e bonds 5.779 5.45 6.55 6.90 5.70 5.45 6.55 6.90 offering. Includes Statu 1976 1974 1979 1984 300.0 400.0 350.0 250.0 Debs Debs Debs Debs only only from by by income income specific denotes from from taxes anil over. gen public only; Rev.-Re payments. and International non-quaranteed issues Bank by for Federal Reconstruct Agencies. a I >lV-t i gat i oi it i 1 i t quasi-utili ; Kev.-S.T. revenue 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) , APPROXIMATE DATE OF OFFERING Corporate 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 Alison Mtge & Inv. Trust General Telephone of Calif Investors Div Svcs Inc. Michigan Wisconsin Pipeline Co Mony Mtge Inv Dominion Bankshares Duke Pwr Co Duke Pwr Burlington Northern Inc. Burlington Northern Inc. New York Telephone Co Penna Elec Co Atlantic Bancorp Pacific Lighting Service Co Gen'l Telephone Co of Indiana Philadelphia Elec Co Connecticut Light & Pwr Co Alabama pwr Co Alabama Power Co First Natl State Bancorp Long Island Lighting Co Bell Tele Co of Pa Texas Elec Svc Northern Natural Gas Co Oklahoma G, & E. Pub Svc Co of Ind. Kentucky Pwr Co Carolina Pwr & Lt. Co Lone Star Gas Co Louisiana Pwr & Lt. Co. Tampa Elect C&P Tele Co of Md. Gen'l Tele Co of 111. Debs 1st mtg Bonds 1st mtg* Debs 1st mtg 1st mtg Debs Debs Bonds Debs Bonds Debs Debs Bonds Notes Eq tr Eq tr Bonds Bonds Debs Debs Bonds 1st mtg 1st mtg 1st mtg Pref stk Notes 1st mtg Bonds Bonds Debs Bonds Bonds Bonds Stocks Debs Bonds Bonds Bonds Bonds 20.0 15.0 12.0 35.0 10.0 50.0 30.0 12.0 25.0 50.0 35.0 40.0 50.0 15.0 40.0 60.0 16.0 34.0 200.0 30.0 20.0 26.0 18.0 80.0 30.0 25.5 38.0 25.0 50.0 125.0 30.0 60.0 30.0 50.0 50.0 45.0 30.0 25.0 40.0 100.0 20.0 Nov. Nov. Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. Dec. Dec. 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. Jan. a 23 29 29 30 30 30 1 1 2 2 6 6 6 7 7 7 8 8 8 8 9 9 13 13 14 15 15 15 16 5 10 !L 11 12 17 18 18 19 20 25 27 14 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) • APPROXIMATE DATE OF OFFERING State and Local Chicago, City of Milwaukee, Wise Suffolk Co. N.Y. Penna, State of Connecticut, State of University of Texas Oneida Co. N.Y. Chicago, 111. Hennepin Co, Minn., Phoenix, Ariz New Jersey |Nassau Co. N.Y I Ann Arbor Pub Sch, Mich N.Y. City Chicago Public Bldg Com Oklahoma Capital Imp Auth Oregon, State of Orleans Parish Sch Bd HAA Dallas, Texas Richmond, Va NYC Housing Devel Corp Vermont Muni Bond Bank Ohio, State of Philadelphia Sch Dist, Pa G.O. G. 0 • G.O. G.O. G.O. Rev G.O. Rev. G.O. G.O. G.O. G.O. G.O. G.O. Rev. G.O. G.O. G.O. Bonds G.O. & Rev G.O. Rev. G.O. G.O. G.O. 30.0 17.0 17.0 125.0 12.5 50.0 16.1 25.0 10.7 10.0 75.0 48.9 12.9 376.8 55.0 17.5 68.0 12.0 253.0 11.0 35.0 100.0 20.0 60.0 40.5 Nov. Nov. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Jan. March 29 30 1 1 2 2 2 3 7 7 7 8 9 14 14 14 14 14 15 15 15 7 7 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. 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 AMEX4- NYSE AMEX 9 - High Low 50.32 (5/14) 49.31 (7/29) 968.85 (5/14) 32.91 (1/13) 769.93 (12(1% 25.02 (7/29) 16.5 (3/29) 8.6 (8/29) 8.0 (1/31) 3.6 (11/21) 0 - 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) 1 - 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 26 52.16 50.85 50.47 50.57 840.39 812.94 810.67 816.59 24.54 ^ 24.10 23.78 23.63 13.1 12.4 12.2 12.7 3.3 2.8 3.0 3.4 Figures other than highs and lows are Fridays only. «Highs and lows are for the year and are not necessarily for Fridays. NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange. Volume figures are daily averaged for the entire week, (millions of shares). Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or In recent years, however abbreviated trading to the extent, and over the time Hours/ Days/ From Through: Day Week January 3, 1 % 9 July 7, 1969 January 2, 1970 July 3, 1969 December 31, 1969 May 1, 1970 3. 12/31/65 - 50 4. Average dollar value of shares listed. 4 4-1/2 5 5 5 5 27-1/2 hours per week. periods, shown below: Hours/ Week l'") T A B L E 9: Security Credit NET C.isF.fj"i T I :CUSTOMERS 1 ! CUSTOMERS' NET KXTKXDF.D BY •BROKi.RS AND } NET DEBIT | FREE CREDIT 3 i BALANCES 1 BALANCES \ DEALERS CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 1 BANKS 2 j TOTAL END OF PERIOD I Outstanding: 1970 1971 Sept. Oct. Nov. Dec. 3,920 4,010 4,010 4,030 2,330 2,270 2,320 2,330 6,250 6,280 6,330 6,360 -Jan. Feb. Mar. Apr. May June July Aug. Sept. 4,000 4,090 4,300 4,530 4,620 4,720 4,790 2,300 2,330 2,360 2,340 2,340 2,390 2,420 2,430 2,430 6,300 6,420 6,660 6,870 6,960 7,110 7,210 7,280 7,360 30 -60 50 10 140 30 50 30 4,850 4,930 (4) 2,236 2,163 2,197 2,286 (4) (4) (4) (4) (4) (4) (4) (4) (4) 2,452 2,743 2,798 2,660 2,550 2,440 2,210 2,200 2,100 (4) 1 (4) (4) (4) (4) (4) (4) (4) (4) (4) (4) (-4) (4) k4) (4) (4) Change in Outstanding 1 9 7 0 Sept Oct. Nov. Dec. 1971 -Jan Feb. Mar. Apr. May June July Aug Sept. 110 90 - — . 20 -30 90 210 230 90 100 70 60 80 1 -30 30 30 -20 - - 50 30 10 -60* 120 240 210 90 150 100 70 80 . - - - - - - - -• - - - - - - - - - - - - - "5 153 -73 34 89 291 291 55 -138 -110 110 230 -10 - - - - - "* " * — * - - - - - - - • - - - - - -- ... 100 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. 2 "Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments." 3 _The difference between customers' net debit balances and customers' net froe 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 tho New York Stock Exchange and are end of month data. Bank loans are for weekly ruportin;; $ 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 Seines discontinued. for FRASER 5 Changes in series. • Digitized TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE 1968 1969 1970 MUTUAL SAVINGS BANKS REGULAR DEPOSITS 3 NET ANNUAL NEW M ONEY2 GROWTH NET FLOW RATE 1 SAVINGS ,St LOAN ASSOCIATIONS SHARE CAPITAL NET NEW ANNUAL NET . GROWTH MONEY2 1 FLOW RATE 4,203 2,549 4,466 Not Seasonally Adjusted 7,432 6.0 2,738 4,200 3.2 -1,003 11,173 8.2 5,295 7.0 4.0 6.7 -- n 176 575 276 1971 - August September j>/ October j»/ 300 793 400 —— 1970 - August September October 1,143 -763 936 — — -- 81 -8 138 550 1,827 1,130 195 105 250 1,109 2,669 1,540 •* ** —— — —— ' — TOTAL DEPOSITS ANNUAL NET GROWTH FLOW RATE 1 11,635 6,749 15,639 511 575 1,050 726 2,402 1,406 1,050 1,109 1,492 1,409 3,462 1,940 6.3 3.4 7.7 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 August September October £/ 1 2 3 1,176 795 818 566 425 643 561 19.0 12.7 12.9 8.8 6.6 9.9 8.6 -— — — — 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 —— — —— - —-- . , 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 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. —— —— —— . -— T A B L E 11: DATE TOTAL Mortgage Commitments at S e l e c t e d T h r i f t I n s t i t u t i o n s 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. STAT 10 (Billions of Dollars, Se asonally Adjusted)—^ Sept. Oct. . Nov. Dec. 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 71 - Jan. Feb. Mar. Apr. May June July Aug. Sept. 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 f.l 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 .20 .60 1.16 1.01 1,21 .72 .28 rJ . 10 £/ -.01 -.11 -.07 .01 .23 .05 .20 .20 .29 .34 .05 1 .02 , 1 .03 1/ . 13 2 Based on data from Federal Home Loan "Bank Board and Savings Banks Associations of Data for savings banks and S&L's include a minor amount of nonNew York State. residential 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. 19 TABLE 12: Net Change in Mortgage Holdings TOTAL INCLUDING FNMA-GNMA TOTAL FINANCIAL INSTITUTIONS MUTUAL SAVINGS & SAVINGS COMMERCIAL LOAN ASSOC. BANKS BANKS LIFE INSURANCE COMPANIES FNMA-GNMA Not Seasonally Adjusted 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 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 4,556 n.a. n.a. 3,930 3,586 n.a. 1,000 1,100 900 415 272 2,39V 2,122 1,992 124 92 n.a. 626 n.a, n. a, 1,919 2,196 2,128 2,049 2,604 1,511 l,832 r 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. 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 r 155 200 131 232 24 97 154 38 25 23 72 130 132 n.a. 408 364 320 229 100 -33 -87 -8 -79 7 205 361 634 n. a. n.a, 20,016 Seasonally Adjusted 1,860 2,097 2,988 2,939 3,280 4,177 4,259 4,404 n.a. 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. Montniy aaca tor uummci. va.»a. " — — ~7 .. 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 T A B L E 13: N e t I n c r e a s e s in M o r t g a g e Debt O u t s t a n d i n g ' Billions of dollars, SAAR ^ QUARTER TOTAL RESIDENTIAL 3 1- to 4FAMILY MULTIFAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 1966 - II IV 18.6 15.1 10.9 9.1 8.3 7.0 2.6 2.1 5.5 4.1 8.1 6.2 2.2 1.8 1967 - I II III IV 15.9 20.7 26.6 27.3 10.3 13.9 19.2 19.8 7.0 10.5 15.3 16.0 3.3 3.4 3.9 3.8 3.9 5.0 4.9 4.8 7.2 8.3 8.8 8.6 1.8 1.8 2.5 2.8 1968 - I II III IV 27.7 26.2 26.0 29.6 19.0 18.2 17.7 20.2 15.8 15.0 14.1 16.4 3.1 3.2 3.4 3.8 6.4 5.9 6.5 7.5 9.6 9.0 10.1 11.3 2.3 2.2 1.8 1.8 - 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 1971 - Ip 36.3 47.6 25.9 36.4 17.7 26.2 8.2 10.2 8.1 8.9 16.3 19.1 2.2 2.3 1?69 • I I P 1 2 3 Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National*Mortgage Association, Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations and extrapolations, where required, estimated mainly by Federal Reserve. May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family and multifamily mortgage debt combined. TABLE 14: FNMA Weekly "Auction" Results | WEEK ENDED 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. \ IMPLICIT YIELD 2 (per cent) COMMITMENTS IN $ MILLIONS ACCEPTED 3-4 1-YEAR 1 1-YEARN months 6TOTAL 6TOTAL 3-4, & OVER MONTH OFFERED mo. 3/ MONTH & O.VER a/ -- f -- 8.07 -- -- 7.97 — — 7.88 7.86 — — 7.85 7.83 — — 7.77 7.70 1 Note: Under 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. 3 Short-term commitments converted from a 3 to a 4 month basis beginning October 18, 1971. T A B L E 15: DATE 4 Private Housing Starts and Permits STARTS j SEASONALLY ADJUSTED j ANNUAL RATE j TOTAL 2 OR MORE 1-FAMILY TOTAL ! . UNADJUSTED ! TYPE OF FINANCING 1 FHA | VA 1 OTHER i < i 1970 - Oct. Nov. Dec. 1,583 1,693 2,054 890 934 1,240 693 759 814 1971 - Jan. Feb. Mar. Apr. May June July Aug. r/ Sept. r/ Oct. £/ 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 i ! 1 ! 1 1 140.9 126.9 121.4 40.4 33.7 63.2 5.8 5.5 5.7 110.6 102.2 167.9 201.1 198.5 1!?3.8 194.3 204.5 169.5 182.0 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 94.7 87.2 52.5 72.8 68.4 127.6 148.0 149.4 137.8 142.2 149.3 112.5 -- j I j BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 1,523 1,487 1,768 1,635 1,563 1,627 - 1,638 1,927 1,849 2,052 2,006 1,900 2,215 Total starts are Census estimates including farm for both permit-issuing and noi.-issuing areas. A dwelling unit is started when excavation begins; all units \ 1 in an apartment structure are considered started at that time. FHA and VA starts are units started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field ? office receives the first compliance inspection report, which is made before footings are poured in some cases but normally after the foundations have been completed. Other starts are derived as a residual, although total and FHA and VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without 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 per-) mits reflect direct adjustment for differences in the number of working days per month, as well as other differences in timing and coverage. 23 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES DATE ; 30-year 2 CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON CONV. & FHA MORTGAGES 5 1 NEW SPREAD BETWEEN Aaa CORYIELDS ON NEW ^ PORATE CORPORATE BONDS BONDS j AND 4 FHA MORTGAGES 6 1 1969 - High Low 8.62 7.99 8.35 7.55 -.13 -.40 8.75 6.91 1.08 -.13 1970 - High Low 9.29 8.40 8.60 8.30 -.10 -.74 9.11 7.80 .99 .01 1971 - High Low 7.97 7.32 7.95 7.55 .28 -.19 8.01 7.24 .40 -.36 1971 - May June 7. 75 7.89 7.65 7.70 -.10 -.19 8.01 7.90 -.26 -.01 July Aug. Sept. 7.97 7.92 7.84 7.80 7.85 7.85 -.17 -.07 .01 7.96 7.65 7.44 .01 .27 .40 Oct. 7.75 7.80 .05 7.29 .46 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. 2 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. 3 Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities. 4 See note for Table 1„ 5 Yield spread equals conventional mortgage rate less FHA secondary market yield. 6 Yield spread equals FHA secondary market yield less new Aaa corporate bond yield. 1 T A B L E 17: NEW HOMES CON- FEES & TRACT C H A R G E S EFFEC- M A T U R I T Y DATE RATE (PER CENT) (PER CENT) 2 TIVE RATE (YEARS) C o n v e n t i o n a l Mortgage T e r m s EXISTING HOMES LOAN/L CON- P R I C E 1 LOAN RATIO' AMT. (PER ($000) TRACT CHARGES (PER RATE (PER CENT) CENT) 2 CENT)1 3 1 FEES & [LOAN/ | EFFEC- MATU-• (price. ! LOAN TIVE RITY IRATIO 1 A M T . • RATE (YEARS )| (PER j (sooo; 3 1 [CENT ) 1970 Oct. Nov. Dec. 8 .33 8 .26 8 .20 1.05 0.99 1.07 8.,03 0.92. 8.18 7..74 7.,52 1.00 0.83 0.73 7.91 7.66 7.49 7.47 7.50 7.66 "8.51 8.43 8.38_ - 25.1 25.3 72.4 72.1 25.8 73.8 25.8 26.2 73.9 25.9 26.3 73.7 73.6 74.0 73.7 74.5 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 0.82 8.08 23.5 72.5 0.79 0.77 0.75 7.80 7.60 24.0 24.1 24.2 73.1 73.5 73.6 73.2 73.9 26.4 7.94 26.2 7.67 26.0 7.47 26.2 7.34 2 6 . 7 7.33 27.2 7.38 27.1 7.50 2 6 . 5 7.58 75.3 75.6 25. 9 7.63 2 6 . 3 7.62 71.5 71.5 71.9 20.5 21.1 21.7 1971 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 7. 3 7 7. 3 6 7. 38 7. 51 7. 60 0.71 0.74 0.90 0.84 7.74 26.1 26.3 26.3 26.2 0.97 7. 67 7. 6 7 , 0 . 9 6 7.83 7.83 25.8 26.5 73.3 0.71 0.74 7.47 7.45 24.0 24.3 24.2 0.76 7.50 7.63 7.71 24.5 0.78 7.76 24.2 74.2 74.5 0.78 7.75 24.2 74.6 0. 75 73.9 74.5 l 22.0 22.5 23.0 23.1 23.3 28.3 23.2 23.5 22.5 23.0 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 m^jor 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 purvey, 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 t@ 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