Full text of H.16 Capital Market Developments : October 16, 1972
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
^ ~ ' - V Y M O O i r t t l L.5.8 D E C ° r a 0 U ® Confidential (F.R.) I S I X MONTHS October 1 6 , 1972 0 h \ A £*'!*»\ • Zsi CAPITAL MARKET DEVELOPMENTS *-"• '"1:: ' • \ C a p i t a l M a r k e t s S e c t i o n , Division of R e s e a r c h and S t a t i s t i c s , Board of G o v e r n o r s of t h e F e d e r a l R e s e r v e System, Washington, D. C. - / , 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 Municipal Bond Markets C a p i t a l Market Y i e l d s C a p i t a l Market Volume Stock Market Mortgage Market SYMBOLS: e Estimate p Preliminary r Revised n.a. Not a v a i l a b l e T A B L E 1: Yields, Volume and Reception C O R P O R A T E BOND M A R K E T W E E K ENDING: 1972 - Sept. Oct. YIELDS MOODY'S NEW ISSUE SEASONED Aaa Aaa' UTILITY 1 8 15 22 29 7.41 7.38 7.34 7.44 7.42 6 13 7.16 7.19 7.23 7.23 .7.24 98 371 121 252 100 41 90 58 86r 99r n.a. n.a. n.a. n.a. n.a. 7.44 7.23 433 88 7.48 7.22 n.a. 171 550e n.a. n.a. 20 1972 - Sept. Oct. 1 8 15 22 29 6 13 20 1 2 .... 69 n.a. M U N I C I P A L BOND M A R K E T VOLUME2 YIELDS W E E K ENDING: GROSS OFFERINGS VOLUME 2 PER C E N T SOLD BY END BONDS SCHEDULED OF W E E K WITHIN 28 DAYS MOODY'S N E W ISSUE Aaa BOND BUYER SEASONED 20 B O N D INDEX 5.10 5.15 5.10 5.15 5.08 5.38 5.39 5.38 5.37 5.30 299 225 600 291 568 68 88 79 72 87 681 758 1,308 1,289 1,484 5.05 5.22 5.16 n.a. 382 707 450e 98 76 n.a. 1,218 n. a. 5.00 n.a. GROSS OFFERINGS PER C E N T SOLD BY END OF W E E K BONDS SCHEDULED WITHIN 28 DAYS .... 1 New series derived by adjusting to a A a a u t i l i t y b a s i s , n e w issues of p u b l i c l y - o f f e r e d c o r p o r a t e bonds w i t h call p r o t e c t i o n , rated A , A a , or A a a by Moody's, Investors Service (except s e r i a l and c o n v e r t i b l e issues, offerings of n a t u r a l gas pipeline and foreign companies, and bonds guaranteed by the F e d e r a l Government ). For a d d i t i o n a l details and b a c k data, see the S e p t e m b e r 1972 issue of the Federal R e s e r v e B u l l e t i n . T h e A a a corporate yield series previously published in the L.5.8 has b e e n d i s c o n tinued. M i l l i o n s of dollars unless otherwise indicated. Note: See footnotes to Table 3. T A B L E 2: D e t a i l s on Inventories DATE OFFERED . 10/5 10/10 10/11 10/12 10/12 CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING A N D ISSUER YIELD CALL PROTECTION COUPON AMOUNT (MIL. $) . 40.0 20.0 53.0 30.0 15.0 Gen Tel of SW M a s s Elec M e t r o Ed Pac Pwr & Lt United T e l of Pa 7 1/2 7 3/4 8 1/8 7 3/4 7 5/8 7.60 7.60 8.00 7.80 7.625 A A Baa Baa A 5 5 5 5 5 ESTIMATED PROPORTION SOLD yrs yrs yrs yrs yrs 85% 337= 40% 98% 50% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST W E E K ORIGINAL INCREASE RATING A N D ESTIMATED PROISSUER COUPON IN YIELD CALL PROT. PORTION RELEASED YIELD OFFERED AMOUNT NONE INVENTORIES MUNICIPALS BLUE LIST 1 IN SYNDICATE • DATE 1972 - Sept. Oct. 15 22 29 6 13 702 618 630 650r 755 202 163 73 1 CORPORATES IN SYNDICATE 58 35 15 51 51 166 59 N.C. - No call protection. All figures in millions of dollars. vhich is daily average of three days Blue List is daily average for week ended Friday,except endt-d Wednesday. All other figures arc as of Friday. for latest week \ \ T A B L E 3: High Grade Bond Y i e l d s N E W ISSUE Aaa UTILITY DATE 1970 - High Low 9.43 7.72 1971 - High Low 1972 - High Low 1972 - Sept. Oct. 1 2 3 4 (6/19) (12/11) MOODY'S SEASONED CORPORATE Aaa 2 U.S. G O V E R N M E N T 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS 4 8 . 6 0 (7/3) 7.48 (12/21) 7.55 6.17 (5/29) (12/18) 7.12 5.33 (5/29) (12/11) 8.26 (7/30) 7.02 (2/5) 7.71 (8/13) 7.06 (2/12) 6.51 5.69 (6/18) (3/23) 6.23 4.97 (6/23) (10/21) 7.60 (4/21) 7.08 (3/10) 7.36 (4/28) 7 . 1 6 (8/1) 6.19 5.92 (4/14) (8/18) 5 . 5 4 (4/13) 4.99 (1/13) 22 29 7.44 7.42 7.23 7.24 6.07 6.12 5.37 5.30 6 13 7.44 7.48 . 7.23 7.22 6.07 6.02 5.22 5.16 N e w issue Aaa u t i l i t y , w i t h call p r o t e c t i o n , adjusted (as described in footnote 1 of T a b l e 1) to a A a a b a s i s . W e e k l y average of daily figures. , A v e r a g e term of b o n d s included is 2 2 - 2 4 years. W e e k l y average of daily figures. T h u r s d a y figures. T h e average rating of the 20 bonds used in this index falls m i d w a y between the four top groups as classified by M o o d y ' s Inv e s t o r s Service. N o t e - - H i g h s and lows are for individual series and m a y be on different dates for different series. T A B L E 4: Long-term Corporate and State and Local Government Security O f f e r i n g s and P l a c e m e n t s (In m i l l i o n s of d o l l a r s ) GROSS PROCEEDS CORPORATE PERIOD 1 STATE A N D LOCAL 1972 1971 1970 January February March 3,205 3,369 3,229 3 ,115 3 ,000 6 ,075 2 ,636 1 ,802 3 ,539 April Hay June 3,275 3,598 4,341 4 ,042 3 ,300 4 ,375 3 ,170 3 ,909 3 ,389 July August September 3,436 2,910e 4 ,147 2 ,532 3 ,768 2 ,768 2 ,274 3 ,518 3 ,387 3.,704 3,,673 3 ,777 4 :,182 3 ;,980 9,803 11,214 12,,190 11,,688 10,,447 10, 7 6 4 7.,977 10,,468 8,,560 11,,939 21,017 23, 8 4 4 3 4 , 325 45, 089 18, 445 27, 005 38, 944 October • November December 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1 2 I i ! 1972 1971 1 ,776 2,732 1,851 2,258 1,340 1,214 1,555 1,891 2,167 2,013 1,647 996 1,085 1,989 1,903 2,098 1,348 1,359 1,758 1,728 2,264 2,068 1,924 1,748 2,190 6,,015 6, 325 6,841 6,081 5,990 6,060 4,109 3,728 4,465 5,862 12, 339 12,912 18,902 24,962 7,837 12,302 18,164 2 ,002 2 ,237 I 2 ,114 1 1,986 2 ,224 | 1 1! i*,771 ,918 1 1970 Securities and Exchange C o m m i s s i o n estimates of gross p r o c e e d s . Investment Bankers A s s o c i a t i o n of A m e r i c a estimates of principal a m o u n t s . 2 TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH GROSS PROCEEDS BY TYPE OF ISSUER MFG. PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS 1 - 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 3,263 1,,053 4,753 3,331 4,164 - I II 9 , 805 11, 2 1 4 5 , 361 4, 634 1 593 2 781 2,851 3,798 74 245 511 449 1,,525 2.,109 2, 261 3,,495 1.,476 1:,369 4,541 4,240 4, 375 2,,282 760 1,332 52 712 1;,206 1,,055 218 1,897 July Aug. Sept. 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 1,210 850 1,271 Oct. Nov. Dec. 3,,387 3.,704 3.,673 1,,942 ,003 2• 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 Jan. Feb. Mar. 3 ;,205 3 ,369 3 ,229 1 ,767 1 ,917 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 Apr. 3 ,275 May June July Aug. e/ Sept.e/ 3 ,598 4 ,341 3 ,436 2 ,910 2 ,750 1 ,622 1 ,676 1 ,336 1 ,803 1 ,510 850 789 774 1 ,218 534 600 800 864 1,148 1,786 1,100 800 1,100 15 100 130 92 226 131 442 220 205 581 761 767 568 425 700 1 ,219 738 1 ,538 767 650 1 ,100 178 391 800 582 190 25 1,297 1,708 1,235 1,519 1,645 925 - June - 1 TOTAL GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND BONDS MEMO: PRIVATELY PFD. PUBLICLY ISSUES INCLUDED PLACED OFFERED STOCK FOREIGN 1 CONVERTIBLE -— n. a. 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. T A B L E 6: Large Long-term Public Security I s s u e s for New Capital (Other than U r S. T r e a s u r y ) 1 O c t . 2, 1972 thru Oct. 13, 1972 ISSUER P h i l a d e l p h i a Elect G e n ' l Elect Credit Corp M i c h - W i s e . Pipeline S o u t h e r n N e w E n g l a n d Tel Co C i t i z e n s & So Realty Inv C o n s u m e r s Pwr C o n s u m e r s Pwr H o u s e h o l d F i n a n c e Co G T E of S o u t h w e s t L o u i s i a n a Land O f f s h o r e E x p l o ration M a s s a c h u s e t t s Elec C o A t l a n t i c C i t y Elect Northeast Utilities M e t r o p o l i t a n Eel is o n United T e l of Pa Pacific Pwr & Lt Pacific Pwr & Light Co M-G-M Texas Elect Svc Potomac Elect 4/ TYPE2 Cm st Deb 1st m t g Pref Deb C m st Bonds Deb Debs C o n v debs Bonds Cm st C m st Deb 1st m t g Pref 1st m t g Bonds Pref Cm st AMOUNT (MILLIONS OF DOLLARS) 92.7 75.0 50.0 50.0 30.0 61.6 50.0 100.0 40.0 75.0 20.0 15.3 58.3 53.0 15.0 25.0 30.0 50.0 30.2 37.5 V a r i a b l e C o u p o n 1.00 through 9 / 7 7 , 5.00 thereafter. COUPON RATE OR N E T INTEREST COST MATURITY 1980 1992 7.00 7 5/8 — —— 1978 6 3/4 — —— OFFERING YIELD 6.94 7.70 7.52 6.75 1982 2002 (4) 7 3/4 7.60 -- — 2002 1992 -— —— . 8 1/8 7.625 7.93 7 3/4 9.00 7.44 -- —— "» — 7.45 7.50 7.60 — "» -- Aa 7 1/2 7 1/2 7 1/2 —— —— A —— 2002 1997 2002 1997 2002 MOODY'S RATING —— -- A —— A —— —— -- —* 8.00 7.625 7.85 7.80 9.00 7.40 -- Baa A -- Baa Baa -- T A B L E 6: \ Large 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 O c t . 2 thru Oct. 13. 1972 ISSUER S t a t e and L o c a l M a s s a c h u s e t t s B a y T r a n s p Auth Massachusetts Bay Transp Auth California, S t a t e of Texas W t r D e v . B d . San B e r n a r d i n o W t r . D i s t . , C a l . New Y o r k S t a t e N e w Y o r k City Wisconsin Colorado Springs, Co. W a s h i n g t o n M e t r o . A r e a Transit Auth TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON 1 R A T E OR j N E T INTER- ! EST C O S T G.O. G.O. G.O. G.O. G.O. 27.1 12.9 90.0 25.0 12.0 1973-1997 2012 1973-1992 1974-1993 1975 1992 5.24 4.61 4.66 4.81 G.O. G.O. G.O. Rev. 156.0 304.0 35.0 19.0 1973-2002 1974-2013 1973-1992 1977-2000 Rev. 225.0 1912 -- OITKRI;.c YIELD MOODY'S RATING Aa Aa Aaa Aaa A 4.76 5.74 4.47 5.06 3.00-5.25 5.40 2.90-5.25 3.00-5.15 3.50-5.10 & 5.60 3.00-5.40 4.00-6.35 2.90-5.10 3.70-5.00 7.30 7.30 Aaa flights offering. Includes corporate and other security offerings of $15 million and over; State and local security offerings of $10 million and over. In case of State and local government securities, G.O. denotes general obligation; •<ev. -Ut. , revenue obligations secured only by income from public utilities; R e v . - Q . - U t . , revenue bonds secured only by income from quasi-utilitivs; Rev.-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 A g e n c i e s . Aa Baa-1 Aa Aa 10 T A B L E 7: Forthcoming L a r g e Long-term P u b l i c Security O f f e r i n g s for New Capital (Other than U.S. T r e a s u r y ) 1 ISSUER Corporate S o u t h w e s t e r n Pub Serv Co. Ohio Power Co W e s t i n g h o u s e Credit Corp Southeast Banking , Penn Pwr & Lt Ford M o t o r Credit Ford M o t o r Credit *Witco C h e m Corp C o l u m b i a Gas Sys • I First C o m m e r c e Corp ; C e n t r a l Tel Co •First C h i c a g o Montana Dakota O r a n g e & R o c k l a n d Util G e o r g i a Pwr N e w England Tel & Tel Leasco F i n Svc Talley Industries Gilbert F l e x i - V a n Corp Zapata E x p l o r a t i o n Co Portland G e n ' l Elect United Jersey Banks Nevada Pwr Puget Sound Pwr & Lt *Texas Industries C a r o l i n a Pwr & Lt T a m p a Elect * B a n k of V a First T e n n N a t i o n a l Corp * H e r s h e y Foods •Commonwealth Edison • L o u i s i a n a Pwr & Lt • F l o r i d a Pwr •Southern Company • F l o r i d a Pwr & Lt • D e l m a r v a Pwr & Lt Englehard M i n e r a l s & C h e m Co GMAC TYPE Bonds Bonds Deb Conv deb Cm Notes Debs Bonds Debs Conv d e b 1st m t g Debs 1st m t g Cm Pref Deb Bonds Bonds Conv deb Conv deb Bonds Debs 1st m t g 1st m t g Debs Cm st Pref Debs Debs Debs Pref Bonds Honds Cm st Pref Cm st Conv deb Bonds AMOUNT (MILLIONS OF DOLLARS) 20.0 25.0 75.0 35.0 45.0 100.0 50.0 25.0 60.0 20.0 30.0 100.0 20.0 25.5 75.0 200.0 50.0 25.0 25.0 25.0 20.0 20.0 15.0 15.0 15.0 54.0 20.0 20.0 25.0 30.0 50.0 25.0 50.0 150.0 60.0 20.0 50.0 150.0 A P P R O X I M A T E DATE OF OFFERING October October October October October October October October October October October October October October October October October October October October October October October October October November November 16 16 17 17 17 18 18 18 18 18 18 19 19 19 24 24 24 25 25 25 25 25 26 26 November November November November November November November November November INDEF INDEF 7 7 8 13 14 14 14 15 16 1 2 T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) A„ ISSUER TYPE S t a t e and L o c a l South C a r o l i n a Los A n g e l e s Co Flood C o n t r o l Dist, Cal. San D i e g o Unified Port Dist. Ca. Phoenix, A r i z . Salem, Mass • A l a s k a H o u s i n g F i n Corp Los A n g e l e s D W A P P i t t s b u r g h Pub Pkg. A u t h . , Pa. • M o n r o e S c h o o l Dist • M a n a t e e C o . , Fla. A l l e g h e n y Co. Pa. N e w Y o r k S t a t e D o r m Auth. A u s t i n , Texas University o f Texas * E s t e r o M u n i Improvement Dist Pittsburgh S / D Pa. • Oregon •New York State W i n s t o n - S a l e m , N.C. T a r r a n t Co., T e x a s Jr C a l l D i s t • S a n t a A n a USD, Cal. •Pasadena, Cal. Flat R o c k , M i c h •Hawaii • O m a h a M e t r o U t i l Dist D e l a w a r e Co Indus Dev A u t h . , Pa C a l i f o r n i a , S t a t e of Ohio M o n r o e Co., M i c h AMOUNT (MILLIONS OF DOLLARS) A P P R O X I M A T E DATE OF O F F E R I N G G.O. 48.0 October 17 Rev. 35.0 October 17 Notes G.O. & Rev Rev G.O. G.O. G.O. G.O. G.O. G.O. G.O. Rev. Ind Dev R e v Rev, G.O. G.O. G.O. G.O. Rev. 22.0 22.0 14.3 13.5 50.0 11.5 10.5 24.4 36.0 25.0 12.2 10.0 13.5 20.0 45.0 16.9 10.9 14.0 10.0 10.0 25.0 25.0 20.0 40.0 90.0 100.0 57.0 October October October October October October October October October October October October October October October October October October October October October October November November November November INDEF 17 17 17 17 18 18 18 18 19 19 19 19 19 24 25 25 31 31 31 31 Bonds Debs 150.0 300.0 October October G.O. G.O. & Rev G.O. G.O. Rev. G.O. G.O. Bonds GIO. 1 1 3 16 Other *TVA •Export-Import 16 18 12 Table 8 STOCK PRICES AND VOLUME STOCK P R I C E S 1 - TRADING VOLUME 2 DATE NYSE INDEX 3 - D J . INDUSTRIALS 1970 - H i g h Low 52.36 (1/5) (12/4) (5/26) 8 4 2 . 0 0 ( 1 2 / 2 9 ) 27.02 (1/8) 6 3 1 . 1 6 ( 5 / 2 6 ) 19.36 ( 5 / 2 7 ) 18.5 37.69 7.8 (8/14) 1971 - H i g h Low 57.76 48.73 (4/28) (1/4) 950.82 (4/28) 26.68 797.97(11/23) 22.72 (4/28) (1/4) 22.1 11.0 1972 - High 61.56 56.23 (8/11) (1/3) 971.25 889.30 (5/26) 28.53 (1/3) 25.61 (4/14) (1/3) 21.2 13.8 26.67 16.7 26.46 26.15 26.06 26.18 11.2 12.3 11.8 13.9 Low Sept. AMEX NYSE AMEX * 7.1 (1/2) (2/12) (9/17) 6.7 2.7 (2/5) (8/13) (3/24) (7/7) 7.4 2.6 (3/10) (9/8) 1 8 15 22 29 61.34 60.53 59.76 59.51 60.60 970.05 961.24 947.32 943.03 953.27 6 60.03 945.36 25.95 15.3 3.1 13 59.10 930.46 25.80 11.8 2.6 Oct. 3.3 2.6 2.8 2.6 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/ From Through: Day Week January 3, 1969 July 7, 1969 January 2, 1970 July 3, 1969 December 31, 1969 May 1, 1970 3. 12/31/65 = 50 4. Average dollar value of shares listed. 4 4-1/2 5 5 5 5 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 25 13 T A B L E 9 : Security Credit END OF PERIOE CREDIT E X T E N D E D T O MARGIN CUSTOMERS BY: BROKERS 1 | BANKS 2 | TOTAL CUSTOMERS' NET DEBIT BALANCES NET CREDIT C U S T O M E R S ' N E T E X T E N D E D BY FREE C R E D I T BROKERS A N D BALANCES DEALERS 3 (4) Outstanding: 1971 - July Aug. Sept. Oct. Nov. Dec. 1972 - Jan. Feb. Mar. Apr. May June July 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 5,700 6,180 6,620 7,010 7,200 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 30 10 100 70 80 7,510 7,660 2,459 2,330 2,231 2,245 (4) (4) (4) (4) (4) ~ (4) (4) (4) (4) (4) (4) (4) Change in Outs banding: 1972 - July Aug. Sept. Oct. Nov. Dec. 1972 •- Jan. Feb. Mar. Apr. May June July 1 2 3 -20 -10 40 — —— -50 530 —— 300 480 440 390 190 50 20 10 10 30 350 500 450 400 220 310 150 90 50 400 200 — —— -— — -— -—— -—— 230 -10 100 60 10 50 268 54 -30 -53 -129 -99 14 -—— —— —— —— ---- M a r g i n debt, as reported by the N e w Y o r k S t o c k E x c h a n g e . A l t h o u g h m a r g i n debt u n t i l M a r c h 1968 included loans secured by U . S . governments, the amount of such l o a n s included is thought to have been small. " B a n k loans to others than brokers and dealers for p u r c h a s i n g or carrying secur i t i e s other than U . S . governments." T h e d i f f e r e n c e b e t w e e n c u s t o m e r s ' net debit b a l a n c e s and customers' net free credit b a l a n c e s , this figure represents the net credit extended by brokers and dealers to the n o n f i n a n c i a l public. N O T E : W i t h the exception of b a n k loan data, figures are supplied by the N e w Y o r k Stock E x c h a n g e and are end of m o n t h d a t a . B a n k loans are for weekly reporting large c o m m e r c i a l banks. B r o k e r data includes loans for regulated securities; bank data includes loans for the purpose of p u r c h a s i n g or c a r r y i n g any security, w h e t h e r regulated or n o t . 4 -- 70 60 80 20 -40 490 Series discontinued T A B L E 10: S a v i n g s F l o w s at Nonbank Depositary I n t e r m e d i a r i e s ($ m i l l i o n s ) DATE M U T U A L SAVINGS BANKS • REGULAR DEPOSITS 3 NET NEW ANNUAL MONEY2 GROWTH NET 1 RATE FLOW 2,549 4,517 9,623 1971 - July August 1972 - July August $J S e p t e m b e r e/ 4.0 6.8 13.5 276 195 415 300 September -763 936 5,678 SAVINGS & LOAN ASSOCIATIONS NET SHARE C A P I T A L NEW ANNUAL NET MONEY2 GROWTH 1 FLOW RATE N o t Seasonally A d j u s t e d 4,068 3.1 -1,003 10,965 8.1 5,285 28,244 19.4 20,652 1,551 1,538 1,463 1,052 TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW 6,617 15,482 37,867 3.4 7.7 17.5 1,966 1,409 NET NEW MONEY -1,766 6,231 26,330 1,739 1,247 793 105 2,670 1,091 3,463 1,196 581 416 950 413 310 2,290 1,801 2,159 1,709 2,871 2,572 2,019 100 3,000 1,150 2,217 3,950 1,250 S e a s o n a l l y Adjusted March April May June July August £ / September e/ 1 2 3 1,089 974 576 937 798 663 842 15.8 14.0 8.2 13.2 11.1 9.2 11.5 3,091 2,704 1,814 2,849 3,432 2,232 2,447 20.5 17.6 11.7 18.2 21.5 13,7 14.9 4,180 3,678 2,390 3,786 4,249 2,904 3,289 j.9.0 16.5 10.6 16.6 18.4 12.4 _13,9 A n n u a l growth rate for m o n t h l y data is the annualized m o n t h l y percentage increase in dvposi Ls. Net N e w M o n e y is new deposits net of both w i t h d r a w a l s and interest. Data for S&L insured a s s o c i a t i o n s only, which represent 96% of industry total resources. Regular d e p o s i t s at m u t u a l savings banks exclude items jsuch as C h r i s t m a s club and certain escrow a c c o u n t s , which represent a very small part of total deposits. SOURCE: N a t i o n a l A s s o c i a t i o n of Mutual Savings Banks and Federal Home Loan Bank Board. 2 T A B L E 11: Mortgage Commitments a t 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 TOTAL OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS SAVINGS & BANKS LOAN (N.Y. S T A T E ) ASSOCIATIONS TOTAL 1 NET C H A N G E ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. S T A T E ) (Billions of Dollars, S e a s o n a l l y A d j u s t e d ) 15.9 12.8 16.2 13.1 13.2 13.2 13.1 16.3 16.4 16.3 16.6 16.6 17.0 18.3 19.5 20.5 21.7 21.7 22.0 1 13.2 13.1 13.3 14.2 15.2 16.0 17.1 17.2 17.5 3.1 3.1 3.1 3.2 3.3 3.4 3.6 1.31 .30 3.7 4.1 4.3 4.5 4.6 4.5 4.5 1.26 .08 .02 .29 .14 -.07 -.05 .09 -.06 .30 1.34 1.19 .99 .12 .12 .20 1.22 .56 .40 .08 .97 .97 .79 1.13 .48 .34 Based on data from Federal H o m e L o a n B a n k Board and Savings B a n k s A s s o c i a t i o n s of New York State. D a t a for savings b a n k s and S&L's include a m i n o r amount of nonresidential commitments. S & L c o m m i t m e n t s include loans in process. Net changes are d e r i v e d d i r e c t l y f r o m u n r o u n d e d o u t s t a n d i n g s levels as reported and after s e a s o n a l a d j u s t m e n t by F e d e r a l R e s e r v e . S u b t o t a l s m a y not add -to totals b e c a u s e of rounding. .05 .01 .01 . 14 .07 .12 .15 .18 .37 .22 .20 .09 .08 .06 16 T A B L E 12: Net C h a n g e in Mortgage Holdings 1 F I N A N C I A L INSTITUTIONS DATE TOTAL INCLUDING FNMA-GNMA TOTAL COMMERCIAL BANKS MUTUAL SAVINGS BANKS SAVINGS & LOAN ASSOC. LIFE INSURANCE FNMA-GNMA COMPANIES Not S e a s o n a l l y Ad lusted 1968 1969 1970 1971 1972 - M a y r/ J u n e r/ J u l y r/ Aug. Sept. 23,781 24,074 21,736 41,647 21,273 19,699 16,827 39,259 6,677 5,404 2,462 9,940 4,958 5,724 4,872 n . a. n.a. 4,674 5,692 4,717 n.a. n.a. 1,500 1,600 1,500 1,600 1,400 2,787 2,682 1,845 3,938 . 454 585 380 n.a. n.a. 9,350 9,561 10,172 24,160 2,720 3,453 2,758 3,305 n.a. 2,459 2,052 2,348 1,221 2,508 4,375 4,909 2,388 24 54 79 n.a. n.a. 284 50 155 368 n.a. S e a s o n a l l y Adiusted 1971 - Aug. Sept. Oct. Nov. Dec. 1972 - J a n . r/ Feb. r/ M a r . r/ A p r . r/ May r/ J u n e r/ J u l y r/ Aug. Sept. 1 4,295 4,021 3,747 3,745 4,323 3,783 3,555 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 n, a. n.a. 3,174 3,465 4,297 4,358 4,539 5,205 4,636 n.a. n.a. 1,088 1,154 1,261 1,384 1,461 1,514 1,477 1,501 1,202 ' 400 306 329 465 522 2,252 2,122 1,977 2,058 2,357 130 128 77 77 378 512 466 390 302 242 272 296 486 390 455 533 365 n.a. n.a. 1,813 2,042 2,571 2,506 2,571 3,067 2,693 3,166 n.a. 1 -27 -21 78 52 91 101 n.a. n.a. 149 250 111 -1 375 119 144 353 n.a. M o n t h l y data for c o m m e r c i a l banks based on Federal Reserve estimates benchmarked to Call Report data on real estate loans outstanding as available. Other data derived from m o r t g a g e debt o u t s t a n d i n g as reported separately by National Assn. of M u t u a l Savings B a n k s , Federal H o m e L o a n Bank B o a r d , Institute of Life Insurance and, through A u g u s t 1968, the Federal N a t i o n a l M o r t g a g e A s s o c i a t i o n , and therea f t e r by FNMA and the Government N a t i o n a l M o r t g a g e A s s o c i a t i o n . Data for m u t u a l savings banks arid for L i f e I n s u r a n c e companies m a y differ somewhat from those derived from regular quarterly series because of minor conceptual differences for w h i c h a d j u s t m e n t s are not m a d e in the m o n t h l y series. A l t o g e t h e r , these groups a c c o u n t e d for 87 per cent of the net increase estimated for all holders in 1971. 17 T A B L E 13: Net I n c r e a s e s in Mortgage Debt O u t s t a n d i n g B i l l i o n s of dollars, S A A R TOTAL RESIDENTIAL3 1- to 4 FAMILY 1967 - 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 26.4 25.8 29.4 19.4 18.2 17.4 20.2 16.2 15.0 13.9 16.3 3.2 3.2 3.5 3.9 6.4 6.0 6.6 7.3 9.5 9.2 10.1 11.2 2.3 2.2 18 1.9 1969 - I II III IV 31.8 29.1 26.2 24.9 . 23.6 21.5 19.0 18.2 19.2 16.8 14.4 13.0 4.4 4.7 4.7 5.3 6.1 5.4 5.4 5.2 10.5 2.2 10.1 10.0 10.5 2.2 1.7 1.4 1970 - I II III IV 20.6 22.9 29.1 31.3 14.2 16.9 21.8 22.5 9.1 11.5 15.5 16.0 5.1 5.4 6.3 6.5 4.8 4.6 5.2 6.7 9.9 9.9 11.5 13.2 1.5 1.5 2.1 2.2 1971 - I II III IV 37.1 47.8 53.6 53.4 26.6 36.1 40.1 40.1 18.5 26.4 31.4 31.4 8.1 9.7 8.7 8.7 8.3 9.4 11.2 10.8 16.3 19.1 19.9 19.5 2.2 2.3 2.3 '2.5 1972 - Ie H e 56.7 57.7 41.5 42.8 32.2 33.4 9.3 9.4 13.0 12.8 22.2 22.3 2.2 2.1 QUARTER MULTIFAMILY COMMERCIAL . MULTI-AND COMMERCIAL FARM Bill*!* farm m o r t g a g e debt by type of property, w h e r e not a v a i l a b l e , and I n t e r p o l a t i o n . R e s i d e n t i a l m o r t g a g e debt includes nonfarm only and is sum of 1-to 4 - family and m u l t i f a m i l y mortgage debt c o m b i n e d . T A B L E 14: WEEK ENDED May FNMA Weekly " A u c t i o n " R e s u l t s C O M M I T M E N T S IN $ MILLIONS ACCEPTED 1-YEARll 906TOTAL TOTAL M 0 N T H & OVER DAY OFFERED 30 133.4 J u n e 12 26 83.5 97.8 76.4 76.4 \ 48.1 76.6 48. 1 76.6 -- J u l y 10 24 134.6 123.9 92. 1 113.0 92. 1 113.0 __ Aug. 106.2 114.6 81.7 87.2 81.7 87.2 -- Sept. 5 18 220.6 295. 9 151.2 148. 1 151.2 148.1 Oct. 352.8 211.5 211.5 7 21 2 -- -- — IMPLICIT YIELD2(per cent) 90DAY 6M0NTH 1-YEAR & OVER -- 7.62 -- -- 7.62 7.62 -- -- -- 7.62 7.62 -- -- -- 7.63 7.62 -- -- 7.63 7.65 -- 7.69 -- 1 __ -- Note: Under the FNMA auction system, approved sellers of G o v e r n m e n t underwritten m o r t g a g e s bid for FNMA forward p u r c h a s e c o m m i t m e n t s . Average s e c o n d a r y m a r k e t yields a f t e r a l l o w a n c e for commitment fee and required p u r c h a s e and h o l d i n g of F N M A stock, a s s u m i n g p r e p a y m e n t of 15 y e a r s for 3 0 - y e a r G o v e r n m e n t - u n d e r w r i t t e n m o r t g a g e s . Y i e l d s shown are g r o s s , b e f o r e d e d u c t i o n of 38 b a s i s points fee paid b y investors to s e r v i c e r s . 19 T A B L E 15: P r i v a t e Housing Starts and Permits STARTS UNADJUSTED TYP E O F F I N A N C I N G FHA VA OTHER BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 SEASONALLY A D J U S T E D A N N U A L RATE TOTAL 1-FAMILY 2* OR M O R E TOTAL - August September October November December 2,219 2,029 2,038 2,228 2,457 1,198 1,172 1,155 1,242 1,347 1,021 857 882 985 1,110 204.5 173.8 179.7 176.4 152.1 45.8 48.3 38.5 47.2 85.4 9.4> 8.7r 8.1 9.1 7.4 147.0 116.8 133.1 120.1 59.3 1,,997 1 ,944 1 ,983 2,,051 2,,142 - January February March April May June J u l y p/ A u g u s t p/ 2,487 2,682 2,369 2,109 2,350 2,330 2,190 2,457 1,415 1,325 1,302 1,167 1,344 1,296 1,272 1,405 1,071 1,357 1,067 942 1,006 1,034 918 1,052 150.9 153.6 205.8 213.2 227.9 226.3 205.0 228.2 37.4 27.8 37.7 29.1 32.4 31.9 26.2 30.3 7.5 8.0i 10.5 8.5 9.4 9.6 9.4 9.8 106.0 117.8 155.7 172.9 186.1 184.8 169.4 188.1 2,,204 2,,056 2,,007 1,,991 1,,955 2,,121 2),108 2,,246 DATE 1 2 • T o t a l starts are Census estimates including farm for both permit-issuing and noi.-issuing areas. A dwelling unit is started when excavation begins; all u n i t s 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 m o r t g a g e s . A s reported by FHA and VA, a unit is started when a field office receives the first compliance inspection report, which is m a d e b e f o r e footings are poured in some cases but n o r m a l l y after the foundations h a v e 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 m o r t g a g e s . Building permits are Census estimates based on 13,000, or all known permitissuing places. U n l i k e starts, s e a s o n a l l y adjusted building permits r e f l e c t direct adjustment for differences in the number of days per month, as w e l l as other differences in timing and coverage. - 20 T A B L E 16: Mortgage and Bond Y i e l d s FHA MORTGAGES DATE 30-year 2 CONVENTIONAL MORTGAGES 3 1 S P R E A D BE- 1 NEW TWEEN Y I E L D S ISSUE ON C O N V . & Aaa FHA M O R T UTILITY 4 GAGES 5 SPREAD BETWEEN YIELDS ON NEW C O R P O R A T E BONDS AND FHA M O R T G A G E S 6 1970 - H i g h Low 9.29 8.40 8.60 8.30 -.10 -.74 9.43 7.72 .37 .70 1971 - H i g h . 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 7.49 7.46 7.45 7.50 7.53 7.54 7.54 7.55 7.60 7.60 7.55 7.60 7.60 7.60 7.65 7.65 7.76 .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 September 1 2 3 4 5 6 7.56 N e i t h e r m o r t g a g e nor bond yields include a l l o w a n c e for servicing costs which are much h i g h e r for m o r t g a g e s than for b o n d s . G e n e r a l l y , b o n d s pay interest semiannually; m o r t g a g e s , m o n t h l y . M o r t g a g e y i e l d s , if computed as equivalent to a semi-annual interest investment, would be slightly h i g h e r than given in the table. Based on F H A - f i e l d - o f f i c e opinions about a v e r a g e bid prices in the private secondary m a r k e t for n e w - h o m e m o r t g a g e s for immediate d e l i v e r y . Separate data a v a i l a b l e for 25-year a n d - - b e g i n n i n g July 1961--30-year mortgages with m i n i m u m d o w n p a y m e n t s , weighted by p r o b a b l e volume of transactions. Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year m o r t g a g e s . Based on F H A - f i e l d - o f f i c e o p i n i o n o n typical contract interest rates (rounded) on c o n v e n t i o n a l first mortgages prevailing in the m a r k e t areas of insuring offices. See note for T a b l e 1. Y i e l d spread equals conventional m o r t g a g e r a t e less FHA secondary market yield. Yield spread e q u a l s FHA secondary market yield less new A a a corporate bond yield. 21 TABLE 17: Conventional Mortgage Terms CON- FEES & TRACT CHARGES EFFEC- MATURITY DATE RATE (PER CENT) (PER CENT) 2 TIVE RATE (YEARS) 3 LOAN/ PRICE LOAN RATIO AMT. (PER ($000) CENT) CON- FEES & TRACT CHARGES EFFECRATE (PER TIVE (PER CENT) C E N T ) RATE 2 LOAN/ MATU- PR1CF. RITY RATIO (YEARS) 3 (PER CENT) LOAN AMT. ($000) 1971 July Aug. Sept. Oct. Nov. Dec. 7.51 7.60 7.67 7.68 7.65 7.62 0.90 0.84 0.97 0.97 0.87 0.93 7.66 7.74 7.83 7.84 7.79 7.77 26.3 26.2 25.8 26.4 26.7 26.6 74.5 73.9 75.3 75.5 75.4 74.5 27 .1 26 .5 25 .9 26 .3 27 .3 26 .5 7.50 7.58 7.63 7.62 7.56 7.51 0.75 0.76 0.78 0.79 0.79 0.78 7 .63 7 .71 7 .76 7 .75 7 .69 7 .64 24.2 24.5 24.2 24.1 24.6 24.6 7.62 7.45 7.38 7.38 7.40 7.41 7.43 7.45 0.95 1.02 0.84 0.83 0.84 0.85 0.83 0.86 7.78 7.61 7.52 7.51 7.53 7.55 7.56 7.59 26.5 27.0 27.2 27.2 27.2 27.2 27.2 27.5 75.0 76.5 76.2 76.0 76.2 76.5 27,.6 27..8 28,.2 28.5 28.,5 27. 8 28. 2 28.0 7.45 7.35 7.31 7.30 7.33 7.36 7.37 0.82 0.79 0.77 0.78 0.77 0.78 0.83 0.82 7 .58 7 .48 7 .44 7,.42 7..46 7..49 7.,50 24.7 25.4 25.1 25.2 25.2 25.5 25.6 26.3 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 25.2 25.5 1972 Jan. Feb. Mar. Apr. May June July Aug. £ / 77.0 77.3 7.39 7. 52 . 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. 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.