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^ ~ ' - 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.