Full text of H.16 Capital Market Developments : October 18, 1971
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I .fl(s*j .• • AFTER SIX MONTHS October 18*1971 L.5.8 Con<id.nfti-ff!R ) CAPITAL MARKET DEVELOPMENTS Z - 5 ~ * ^ ° c / 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 Revised n.a. Not a v a i l a b l e 3 TABLE 1: Yields, Volume and Reception WEEK ENDING: 1971 - Sept. Oct. 3 10 17 24 7.38 7.21 7.56 7.60 7.45 7.42 7.44 7.44 1 8 15 22 7.53 7.30 7.22 7.46 7.44 . 7.42 Z W E E K ENDING: 1971 - Sept. Oct. YIELDS MOODY'S SEASONED NEW ISSUE 1 Aaa YIELDS BOND BUYER MOODY'S SEASONED 20 SEASONED Aaa BOND INDEX CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OF WEEK OFFERINGS WITHIN 28 DAYS 413 ,285 673 832 ' 54 77 93 90 123 371 471 575e 82 77 74 MUNICIPAL BOND MARKET VOLUME 2 GROSS OFFERINGS PER CENT SOLD BY END OF WEEK BONDS SCHEDULED WITHIN 28 DAYS 3 10 17 24 5.30 5.00 5.10 5.15 5.39 5.36 5.38 5.48 474 371 350 235 91 34 77 67 805 848 910 1,397 1 8 15 22 4.90 4,80 4.65 / 5.24 5.17 4.99 991 368 327 33 2e 73 75 68 955 833 ' 1,180 ' 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 j bonds guaranteed by the Federal Government.) : Millions of dollars unless otherwise indicated. 4 jg Note: Sec footnotes to Table 3 i . • TABLE 2: Details on Inventories 1 DATE \ OFFERED 10/14 10/14 10/14 10/13 10/13 10/12 10/5 j 1 AMOUNT (MIL.' $) i | 6 5/8 6 1/2 7 1/2 7 3/4 7 1/2 8.00 6 3/8 Ohio Pwr Co Mfg. Hanover Trail Mobile Fin Union Tank Gulf Pwr 1st Pacific P&L Ohio Bell Tel 40.0 100.0 25.0 25.0 21.0 35.0 50.0 DATE OFFERED | RELEXSED i — - CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND YIELD CALL PROTECTION / ISSUER COUPON 6.55 6.50 7.41 7.75 7.50 8.00 6.38 A 5 yrs NR -- -- A Aa Baa Aaa , ESTIMATED PROPORTION SOLD 6 yrs NC 5 yrs 5 yrs 6 yrs CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ISSUER AMOUNT COUPON IN YIELD CALL PROT. YIELD 30% 25% 80% 98% 30% 98% 60% ESTIMATED PRO- NOME INVENTORIES 1 MUNICIPALS 1971 - Sept. 17 24 647 630 1 759 872 8 IN SYNDICATE 112 111 308 242 CORPORATES IN SYNDICATE 73 84 31 85 144 169 797 15 _L N.C. - No call protection. 1 All figures in millions of dollars. Blue List is daily average for week ended Friday, except for latest week which is daily average of three days ended Wednesday. All other figures are as of Friday. TABLE 3: High Grade Bond Yields NEW CORPORATE Aaa1 DATE 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 (12/5) 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. 3 0 (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) 4.'99 f l 0 % 7.,56 7,.60 7.44 7.44 6.08 6.09 5.38 5.48 7,.53 7,.30 7 .22 7.46 .o 7.44 7.42 6.01 5.95 5.90 5.24 1971 - Sept. Oct. 17 24 : 1 8 15 4*. 99 New corporate issues, with call protection, adjusted (as described in footnote 1 of Table 1) to a Aaa basis. 2 Weekly average of daily figures. Average term of bonds included is 22-24 years. 3 Weekly average of daily figures. 4 Thursday figures. The average rating of the 20 bonds used in this index falls midway between the four top groups as classified by Moody's Investors Service. 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 PERIOD 1971 January February March 3,115 3,000 6,075 April May June 4,007 3,271 4,375 4,064 2,850e 4,120e July ^August September October November December 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1 2 1970 23,844 34,878e STATE A N D LOCAL 1969 1971 2 196S 1970 2,075 2,045 2,098 1 2,705 I 1 1,839 2,144 1,340 1,214 1,555 1,262 987 • 538 > I I 3,389 2,748 2,076 2,530 1,907 2,135 2,008 1,647 996 1,085 1,801 1,110 737 2,768 2,274 2,518 2,478 1,427 2,427 j 1 1,928 1,871 1,700e 1,348 1,359 1,758 1,097 808 559 1,924 1,748 2,190 1,280 886 816 2,636 1,802 3,539 3,170 3,909 3,777 4,182 3,980 12,190 11,654 11,034® 1 " 1,933 2,375 2,532 8,560 11,939 6,218 7,354 6,332 6,840 6,688 6,050 5,499e 4,109 3,728 4,465 5,862 2,787 3,648 2,464 2,982 18,445 27,005 38,944 13,572 19,904 26,744 12,738 18,237e 7,837 12,302 18,164 6,435 8,89$ 11,881 7,977 10,468 Securities and Exchange Commission estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. I TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) TOTAL 87560 11,938 12,190 11,688 11,034 1 GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND BONDS ISSUES INCLUDED PUBLICLY PRIVATELY PFD. [ 1 STOCK FOREIGN CONVERTIBLE PLACED OFFERED L 912$— 1 , 6 5 9 " 287 83 " 5,937 737 1,421 2,690 7,827 226 1,516 8,369 2,306 724 84 1,758 3,384 6,546 215 1,351 1,787 4,516 4,731 772 GROSS PROCEEDS BY TYPE OF ISSUER COMMUNICATIONS MFG. PUBLIC UTILITY 2,,314 3 =, 1 6 9 3 =, 7 9 4 3,, 1 3 0 1:, 8 3 9 2,, 7 1 4 3,,406 3 a, 1 9 7 2-, 9 1 0 2. , 5 5 6 868 1, , 3 4 6 11, 6 0 6 896 2 ,362 2 ,,663 4,,020 3 :, 5 9 4 4, , 7 5 3 4,,277 445 371 693 282 838 1. , 3 0 0 1 =, 0 3 3 1, , 6 8 7 ISSUERS' 3,518 3,777 4,181 3,979 2,425 2,390 3,001 2,436 389 304 283 834 704 1,083 898 709 4 56 11 159 121 388 184 165 994 1 ,006 1 =, 1 0 7 1 ,056 1 =, 2 4 1 1:, 1 0 1 1, , 3 5 0 955 3,115 3,000 6,075 2,033 594 275 647 489 524 1,293 43 3 38 99 168 557 716 661 2 ,417 676 1 ,069 1 ,452 391 683 532 1:, 3 3 2 587 1;, 6 7 5 4,042 3,271 4,375 4,064 2,850 4,120 2,116 507 491 760 537 500 750 . 1,419 633 1,332 2,196 950 1,370 116 47 52 64 n.a. n.a. 384 255 712 197 300 275 1 ,135 588 1 ,206 529 485 825 1 ,267 588 1 ,055 721 800 1 ,035 273 405 218 1 ,622 350 390 1 ,367 1 ,489 1 ,897 1 ,192 1 ,215 1 ,870 2,201 4,135 2,148 2,282. 1,331 1,400 2,000 Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: Securities and Exchange Commission. Quarterly supplements are avail1 able. . TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 Oct. 1 thru Oct. 15 \ ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET.INTEREST COST OFFERING YIELD MOODY'S RATING Corporates Ramada I n n G e n * 1 Tel Co of the S.W. Phila Elec Co Ohio Bell Tel Co Ohio Bell Tel Co Tenneco Inc M o h a s c o Industries, Inc Massmutual Mtge & Realty Inv Florida Pxvr Co Pacific Pwr & Light Co G u l f Pwr Co Trail Mobile Finance Co Ohio Power Co Consolidated Food Corp Coastal State Gas Producing Union Tank Car M f g Hanover Trust Debs 1st mtg Com stk Notes ' Debs 1st mtg pipeline Com stk Debs 1st mtg 1st mtg Bonds Notes 1st mtg SF debs 1st mtg equip trst certf Debs 60.0 40.0 50.2 50.0 100.0 1996 2001 5.00 7.88 5. 00 7.,85 A 1978 2011 6.38 7.50 6.,38 7.,55 Aaa Aaa 100.0 21.1 50.0 50.0 35.0 21.0 25.0 40.0 50.0 50.0 1991 8.20 8.,20 A 1991 2001 2001 2001 1978 6,.25 7.,60 8,.00 7,.50 7,.50 1996 1991, 6.75 7.38 8.00 7.50 7.50 6.38 7.38 7.75 25.0 100.0 1991 1979 7.75 6.50 7 .75 6 .50 —— —— -- Aa Baa Aa A A Aa A -- 7 .38 7 .75 i: A n.r TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 Oct. 1 thru Oct. 15, 1971 TYPE 2 ISSUER i AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE-OR NET INTEREsf*C05T OFFERING YIELD MOODY •s RATING State and Local Buffalo, N. Y. Buffalo, N.Y. Kentucky Turnpike, Auth Kentucky Turnpike, Auth Minneapolis, M i n n Minneapolis, M i n n Minneapolis, Minn Maine Maine Massachusetts Port,, Auth Massachusetts Port, Auth Chicago Public Bldg. Com, 111 Orlando, Utilities Comm, Fla Michigan, State of Dallas, Indp S/D Chartiers Valley Jt. Sch Bldg Auth, Pa Montgomery Co., Md Puerto Rico South Carolina \ G.O. G.O. Rev. Rev. G.O. G.O. G.O. G.O. G.O. Rev. Rev. Rev. Rev. G.O. G.O. 8.3 18.3 13.5 71.5 3.6 4.4 \ 2.2 13.8 8.0 19.9 58.1 25.0 33.5 . 50.0 17,5 Rev G.O. G.O. G.O. 11.3 30.0 40.0 3.79 1972-1990 1972-1985 1975-1991 2001 1973-1981 1 1973-1981 1972-1991 1990-1991 1972-1991 1975-1998 2001 1973-1991 1973-1998 1972-2013 1972-1991 4.34 3.96 -- 4.43 3.66 4.20 4.27 4.23 4.96 4.85 4.17 1972-1993 • 5.73 1972-2001 4.32 1973-1996 4.82 1972-1987 3.87 2..80-4. 90 2..80-4. 40 4.,00-5. 90 6..20 2,.90-4.75 3..00-4. 75 2..90-4. 75 2,.80-4. 60 2..80-5. 00 4,.00-5. 90 6..03 3,.30-5. 50 2,.90-5. 40 3..10-6. 00 2 . 75-4.70 3 . 00 — 3 .10-5. 30 •Aa Aa Aaa Aaa Aaa Aaa Aaa 1 A-l Aa A Aa BaaA-l Aa TABLE 6: Large Long term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 Oct. 1, throuth Oct. 15, 1971 /TYPE ' AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST OFKKRli.C YIELD MOODY'S RATING Other Federal Land Ban Jahk Federal Land Bank FHLB Bonds Bonds Bonds 326.0 300.0 200.0 1974 1977 1981 5.85 6.35 5.85 6.35 6.60 6.60 I tfights oft vring. 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 gem-rat obligation; !<ev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-ut i1it ies; 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 Agencies. TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING , Corporate FMC Corp Carolina Telephone & Telegraph Carolina Pwr & Light Co Houston Natural Gas Corp Firestone Rubber Co Borg-Warner Accepance Corp Texfi Industries Inc Illinois Pwr Co i Portland Gen'1 Elec Co International Harvester Credit Corp . Beneficial Corp • Beneficial Corp "o Engelhard Mineral & Chemical Mountain Bell Mountain Bell . Consolidated Freightways, Inc. Southwestern Elec Pwr Co Trans American Financial Corp Pacific Gas & Elec Co Beneficial Standard Mtge Inv. Cenco Instrument Corp Honeywell Finance Inc. Combustion Engr Inc. Telex Corp Dallas Pwr & Light Co a Metropolitan Edison Co * Alison Mtge & Inv Trust Detroit Edison Co Detroit Edison Co Gen 1 1 Telephone Co of Michigan Penna Pwr & Light Co , Consumers Pwr Co Gulf States Utilities Co Jersey Central Pwr & Light Co International Paper Co . Delmarva Pwr & Light Co Pacific Lighting Service Co Debs Debs 1st Mtg Debs Debs Debs Conv deb 1st mtg 1st mtg 75.0 20.0 70.0 32.0 100.0 30.0 25.0 35.0 20.0 Notes Notes Debs Debs Debs Notes Debs Mtg Debs 1st mtg Conv debs Debs Debs SF debs Debs 1st mtg 1st mtg Debs Comm stk genl & ref mtge Bonds Comm stk 1st mtg 1st mtg Bonds Conv debs 1st mtg Debs 60.0 50.0 50.0 60.0 125.0 75.0 25.0 30.0 50.0 125.0 15.0 30.0 50.0 50.0 25.0 30.0 15.0 25.0 60.0 90.0 18.0 35.0 60.0 35.0 25.0 60.0 35.0 30.0 ^ . Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. 18 18 19 19 19 19 19 20 20 Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. . Nov. Nov. Nov. Nov. Nov. 21 25 25 25 26 26 26 27 27 28 Nov. Nov. Nov. Nov. Nov. Nov. Nov. Nov. Dec. 4 4 4 8 9 10 1 3 3 4 4 * ' 12 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) ISSUER 1 TYPE AMOUNT (MILLIONS OF DOLLARS) ^ of October 1 5 ^ 1 9 7 1 APPROXIMATE DATE OF OFFERING State and Local Columbus, Ohio New York New Orleans, La North Dakota Detroit, M i c h California State Salt River Proj Agric Imp & Pwr, Dist Sacramento M U D , Cal., Maryland Port of N.Y. Auth Penna State Public Sch Auth Los Angeles Co, Flood Contr D i s t , Calif L o s Angeles DWAPS Ohio, State of Guilford Co., N.C. Essex Co., N.J. Anne Arundel Co, Md California, State of * 1 2 , 11 .8 96 .0 18 .0 15,.0 20,.0 13,.7 Oct. Oct. Oct. Oct. Oct. Oct. 18 21 21 26 26 27 G.O. Rev. G.O. Rev. Rev. 52..0 50.,0 60..0 100.,0 15.,7 Oct. Oct. Oct. Oct. Oct. 27 27 27 27 28 G.O. Rev G.O. G.O. G.O. G.O. G.O. 19. 0 50. 0 100. 0 10. 0 26.0 15. 0 150. 0 Nov. Nov. Nov. Nov. Nov. Nov. Nov. 2 4 4 9 11 17 G.O. Bonds Aurp rev G.O. Rev. Rev. Included in table for first time. ~~ : Includes corporate and ether issues of 515 million and over; State and local Government issues of 510 million and over. / Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. Table 8 13 STOCK PRICES AND VOLUME STOCK PRICES 1 ' NYSE INDEX 3 - Sept D J . INDUSTRIALS TRADING VOLUME ' AMEX 4 5 0 . 3 2 (5/14) 49.31 (7/29) 968.85 (5/14) 3 2 . 9 1 (1/13) 769.93 (12/17: 2 5 . 0 2 ( 7 / 2 9 ) 16.5 ( 3 / 2 9 ) 8.6 (8/29) .0 (1/31) 3 . 6 (11/21) 5 2 . 3 6 (1/5) 3 7 . 6 9 (5/26) 8 4 2 . 0 0 (12/29]27.02 (1/8) 6 3 1 . 1 6 (5/26) 19.36 (5/27) 18.5 (12/4) 7.8 (8/14) 7.1 (1/2) 1.8 (8/14) 5 7 . 7 6 (4/28) 48.73 (1/4) 9 5 0 . 8 2 (4.28) 26.68 ( 4 / 2 8 ) 8 3 0 . 5 7 ( 1 / 4 % 22.72 (1/4) 22.1 (2/12) 6.7 ( 2 / 1 2 ) 2 . 7 (8/13) 17 24 55.66 55.56 55.24 54.26 912.75 911.00 908.22 889.31 25.61 25.66 25.59 25.35 10.8 12.2 15 54.66 54.94 54.06 893.98 893.91 874.85 25.-54 25.71 25.37 11.4 14.8 12.3 3 10 11.0 (8/13) 11.4 14.6 3.1 3.3 3.2 2.8 3.1 4.1 3.8 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 27-1/2 hours per week. In recent years, however abbreviated trading to the extent, and over the time periods, shown below: Days/ Through: Week * From January 3, 1969 July 7, 1969 January 2, 1970 July 3, 1969 December 31, 1969 May 1, 1970 3. 12/31/65 = 5 0 4. Average dollar value of shares listed. . 4 4-1/2 5 -5— 5 5 20 22-1/2 25 14 TABLE 9: Security Credit CREDIT EXTENDED TO MARGIN CUSTOMERS B Y : BROKERS 1 | BANKS 2 j TOTAL END OF PERIOD CUSTOMERS 1 NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY BROKERS A N D FREE CREDIT DEALERS 3 BALANCES Outstanding; 1970 Aug. Sept. Oct. Nov. , Dec. 1971 -Jan. Feb. Mar. Apr. May June July Aug. 3,810 3,920 4,010 4,010 4,030 2,300 2,330 2,270 2,320 2,330 6,110 6,250 6,280 6,330 6,360 (4) (4) (4) (4) (4) 2,083 2,236 2,163 2,197 2,286 (4) (4) (4) (4) (4) 4,000 4,090 4,300 4,530 4,620 4,720 4,790 4,850 2,300 2,330 2,360 2,340 2,340 2,390 2,420 2,430 6,300 6,420 6,660 6,870 6,960 7,110 7,210 7,280 (4) (4) (4) (4) (4) (4) (4) (4) 2,452 2,743 2,798 2,660 2,550 2,440 2,210 2,200 (4) (4) (4) (4) (-4) (4) \4) (4)' 10 110 90 10 30 -60 50 10 -60 140 30 50 30 -30 30 30 -20 -60 120 240 210 90 150 100 70 Change in Outstanding 1970 Aug. Sept Oct. Nov. Dec. 1971 -Jan Feb. Mar. Apr. May June July Aug l" 2 3 , - - 20 -30 90 210 230 90 100 70 60 - - . 50 30 10 — — - - - * - - - - - - - - - - - - - - - - - • - 171 153 -73 34 89 291 291 55 -138 -110 110 230 -10 — — — — - — - - — — - — - - - - - - Margin debt, as reported by the New York Stock Exchange. Although margin debt until March 1968 included loans secured by U.S. governments, the amount of such loans included is thought to have been small. Q "Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments The difference between customers' net debit balances and customers'net free credit balances, this figure represents the net credit extended by brokers and dealers to the nonfinancial public. NOTE: With the exception of bank loan data, figures are supplied by the New York Stock Exchange and are end of month data. Bank loans are for weekly reporting large commercial banks. Broker data includes loans for regulated securities; bank data includes loans for the purpose of purchasing or carrying any security, whether regulated or not. , discontinued. Digitized4 for SeTies FRASER 5 Chances in series. TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS REGULAR DEPOSITS 3 NET ANNUAL NEW MONEY2 GROWTH NET RATE 1 FLOW SAVINGS & LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL MONEY2 NET GROWTH FLOW RATE 1 TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW NET NEW MONEY 2 Not Seasonally Adjusted 4,203 2,549 4,466 1968 1969 1970 1970 - July August September 1971 - J u l y August September jJ 7.0 4.0 6.7 297 176 575 —— 416, 300 600 — — — 1,143 -763 936 7,432 4,200 11,173 174 81 -8 543 550 1,827 276 200 0 ' 1,554 1,106 2,610 . —— -- 6.0 3.2 8.2 485 511 575 840 726 2,402 — 1,463 1,050 1,100 1,970 1,406 3,210 —— 4,172 2,791 2,970 3,167 1,707 2,549 21.8 14.3 15.1 15.9 8.4 12.5 — — — "" • 3,881 -1,766 6,231 11,635 6,749 15,639 -- • — 6.3 3.4 7.7 2,738 -1,003 5,295 659 592 567 . -- — 1,714 1,250 1,100 Seasonally Adjusted 1971 - April May June July - , August September j5/ \ 2 3 1,176 795 818 566 425 450 19.0 12.7 12.9 8.8 6.6 6.9 —— — — -— 2,996 1,996 2,152 2,601 1,282 2,099 23.1 15.1 16.1 19.2 9.3 15.1 — -—— — — 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. — — -- -- \\ & TABLE 11: Mortgage Commitments at Selected Thrift Institutions DATE TOTAL OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS SAVINGS & BANKS LOAN ASSOCIATIONS • (N.Y. STATE) I | TOTAL 1 NET CHANGE ALL MUTUAL SAVINGS SAVINGS & BANKS LOAN • (N.Y. STATE) ASSOCIATIONS (Billions of Dollars, Set sonally Adjusted)!/ 1970 - Aug. Sept. Oct. Nov. Dec. 9.8 8.9 9.3 • 9.6 10.1 1971 - J a n . Feb. Mar. Apr. May June July ' Aug. 10.4 11.2 12.6 13.8 15.3 16.1 16.3 16.4 1 6.8 7.1 7.5 7.8 8.1 2.0 1.8 1.8 1.8 2.0 .21 .25 .30 .35 .51 8.3 8.9 10.1 11.1 12.2 13.0 13.2 13.3 2.1 2.3 2.5 2.8 3.1 3.1 3.1 3.1 .25 .80 1.36 1.30 1.56 .77 .24 .13 .29 .36 .37 .34 .28 .20 .60 1.16 1.01 1,21 .72 .28 r/ .08 Based on d;ita. from Federal Home Loan Bank Board a m 1 Savings Banks Associations of New York State. 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. Mutual Savings Banks and total data include building loans beginning August 1967. -.08 -.11 -.07 .01 .23 .05 .20 .20 .29 .34 .05 .02 .05 ° 17 TABLE 12: Net Change in Mortgage Holdings DATE TOTAL INCLUDING. FNMA-GNMA TOTAL 1 FINANCIAL INSTITUTIONS MUTUAL SAVINGS & COMMERCIAL SAVINGS LOAN BANKS BANKS ASSOC. LIFE INSURANCE COMPANIES FNMA-GNMA Not Seasonally Adlusted 1967 1968 1969 1970 e/ 20,016 23,781 24,189 21,822 1970 - June July Aug. 1971 - June July Aug. 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 2,136 2,089 2,070 1,739 1,626 1,671 187 200 300 209 160 182 1,140 1,079 1,114 203 187 75 397 463 399 4,544 4,264 n.a. 4,411 3,948 1,300 1,000 1,000 435 389 n.a. 2,693 2,511 2.372 -17 48 133 316 626 , Seasonally Ad lusted 1970 - July Aug. Sept. Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. * May June July Aug 1 2,083 1,017 2,192 2,128 2,049 2,604 1,860 2,097 2,988 2,939 3,280 4,177 4,259 n... 1,575 1,509 1,828 1,808 1,820 2,504 1,893 2,184 2,996 2,018 3,273 3,972 3,898 .... 165 268 329 295 224 312 383 445 688 653 840 1,197 969 972 142 175 245 138 . 176"" 250 175 217 380 283 313 413 373 n.a. 1,055 983 1,104 1,175 1,289 1,710 1,311 1,425 1,774 2,044 2,095 2,339 2,484 2,239 213 83 151 200 131 232 24 97 154 38 25 23 72 n.a. 508 408 364 320 229 100 -33 -87 -8 -79 7 205 361 634 Monthly data for commercial banks based on Federal Reserve estimates benchmarked to Call Report.data on real estate loans outstanding as available. Other data derived from mortgage debt outstanding as reported separately by National Assn. of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual savings banks and for Life Insurance companies may differ somewhat from those derived from regular quarterly series because of minor conceptual differences for which adjustments are not made in the monthly series. Altogether, these groups accounted for 84 per cent of the net increase estimated for all holders in 1970. 18 TABLE 13: Net Increases in Mortgage Debt Outstanding 1 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 1969 - I II III IV 31.3 28.9 26.5 25.1 25.0 21.5 19.3 18.3 18.6 16.9 14.6 13.0 4.4 4.7 4.7 5.3 6.2 5.2 5.3 5.4 10. 6 9.9 10.1 10.7 2.2 2.2 1.8 1.4 1970 - I II III r/ IV r/ 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 r/ IIP r/ 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 2 Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of M u t u a l 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. M a y differ somewhat from related flow of funds series mainly because of more 3 aggregative type of seasonal adjustment. Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family . : : j i and multifamily mortgage debt combined. I A/ i TABLE 14: FNMA Weekly "Auction" Results WEEK ENDED 1971 - June Aug. Sept. COMMITMENTS IN $ MILLIONS ACCEPTED 1-YEARH 90TOTAL TOTAL 6OFFERED MONTH & OVER DAY IMPLICIT YIELD 2 (per cent) 90DAY 6M0NTH 1-YEAR 1 & OVER 1 14 28 322.4 664.4 539.3 146.6 191.2 262.2 77.1 133.7 191.8 57.8 47.3 60.3 11.6 10.2 10.4 8.05 7.91 7.92 8.18 8.15 8.22 8.16 8.22 8.28 12 26 606.0 686.2 241.1 183.4 161.8 183.4 58.2 21.1 7.98 8.07 8.23 8.31 7.97 -- 25 634.6 153.5 153.5\ 7 445.2 188.6 188.6 -- -- -- -- 7.88 Note: Under ^ the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments, subject to an over-all dollar limit announced by FNMA in advance. Bids accepted by FNMA are for delivery at the seller's option, and at any time within the specified period. Bids on proposed homes relate to construction not yet started on which mortgages may be delivered only after completion and occupancy. For "proposed construction" of new homes only. 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 50 basis points fee paid by investors to servicers. 3 FNMA announced limit of accepted bids for next week's auction. 20 1 TABLE 15: Private Housing Starts and Permits STARTS DATE 1970 - Aug. Sept. Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May. June J u l y r/ Aug p/ UNADJUSTED TYPE OF FINANCING FHA | VA I OTHER SEASONALLY ADJUSTED ANNUAL RATE TOTAL |1-FAMILY 2 OR MORE BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 1,425 1,509 1,583 I,693 2,054 838 881 890 934 1,240 587 627 693 759 814 1%8.7 130.9 140.9 126.9 121.4 34.1 34.3 40.433.7 63.2 5.6 5.3 5.8 5.5 5.7 87.7 91.3 94.7 87.2 52.5 1,378 1,388 1,523 1,487 1,768 II,725 ;1,754 |1,959 11,912 !19 9 75 946 985 1,048 1,098 1,124 1.177 1.178 1,221 779 769 911 814 851 823 1,037 1,007 110.6 102.2 32.2 27.3 33.4 44.6 40.7 46.1 42.0 4.6 4.7 6.9 8.5 8.4 9.3 9.3 72.8 68.4 127.6 148.0 149.4 137.8 142.6 1,635 1,563 1,627 1,638 1,927 1,849 2,052 12,000 12,215 2,229 167.9 201,1 . 8 198.5 193.8 193.2 201.4 2,008 Total starts are Census estimates including farm for both permit-issuing and nou-issuing areas. A dwelling unit is started when excavation begins; all units { in an apartment structure are considered started at that time. FHA and VA ; starts are units started under commitments by these agencies to insure or guar- f antee the m o r t g a g e s ^ ^ A s reported by FHA and VA, a unit is started when a field f: office receives- the first compliance inspection report, which is made before I footings are poured in some cases but normally after the foundations have been Incompleted. 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 are for 13,000, or all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for j differences in the number of working idays per month, as well as other differences in timing and coverage. & TABLE 16: Mortgage and Bond Yields FHA MORTGAGES ' DATE 30-year CONVENTIONAL MORTGAGES 3 1968 - High Low 1969 - High Low 7.52 6.78 8.62 7.99 7.40 6.75 8.35 7.55 1970 - High Low 9.29 8.40 1971 - Apr. May June July Aug. 7.37 7.75 7.89 7.97 7.92 1 2 3 4 5 6 1 SPREAD BETWEEN YIELDS ; ON CONV. & j FHA MORT| GAGES 5 1 NEW I SPREAD BETWEEN Aaa CORYIELDS ON NEW PORATE CORPORATE BONDS BONDS AND 4 FHA MORTGAGES 6 .02 -.27 -.13 -.40 6.79 6.15 8.75 6.91 1.20 .26 1.08 -.13 8.60 8.30 -.10 -.74 9.11 7.80 .99 .01 7.55 7.65 7.70 7.80 7.85 .18 -.10 -.19 -17 -.07 7.57 8.01 7.90 7.96 7.65 -.20 -.26 -.01 .01 .27 , Neither mortgage nor bond yields include allowance for servicing costs which are much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the table. Based on FHA-field-office oponions about average bid prices in the private secondary market for new-home mortgages for immediate delivery. Data shown are for 30-year mortgages with minimum downpayments, and weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 15 years for 30-year mortgages. , Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities See note for Table 1. Yield spread equals conventional mortgage rate less FHA secondary market yield. Yield spread equals F H A secondary market yield less new Aaa corporate band yield. 22 . ( TABLE 17: Conventional Mortgage Terms DAT NEW HOMES CON- FEES & 1 TRACT CHARGES EFFEC- MATURITY RATE (PER TIVE ! (YEARS') (PER CENT) RATE ' 3 CENT) 2 j LOAN / PRICE LOAN RATIO AMT. (PER ($000) CENT) 4 1 EXISTING HOMES CON- FEES & LOAN/ TRACT CHARGES EFFEC- M A T U - PRICE (PER RATE TIVE RITY RATIO (PER GENT) RATE (YEARS) (PER CENT) CENT) 2 3 LOAN AMT. ($000) 4 1970 Aug. Sept. Oct. Nov. Dec. 8.35 8.31 8.33 8.26 8.20 0.98 1.03 1.05 0.99 1.07 8.52 8.48 8.51 8.43 8.38 24.8 25.2 25.1 25.3 25.8 8.03 7. 74 7.52 7.37 7.36 7.38 7.51 7.60 0.92 1.00 0.83 0.73 0.71 0.74 0.90 0.84 8.18 7.91 7.66 7.49 7.47 7.50 7.66 7.73 25.8 26.2 25.9 26.3 26.1 26.3 26.3 26.2 71.6 72.7 72.4 72.1 73.8 25.5 25.3 24.8 25.2 25.8 8.25 8.27 8.20 8.18 8.12 0.89 0.88 0.88 0.85 0.85 8.41 8.42 8.35 8.32 8.26 23.1 22.8 22.8 22.7 23.3 71.5 71. 7 71.5 71.5 71.9 21.4 21.0 20.5 21.1 21.7 73.3 26.4 7.94 26.2 7.67 73.9 ° 26.0 7.47 73.7 73.6 26.2 7.34 74.0 26.7 7.33 27.2 7.38 73.7 74.5 27.1 7.50 74.0 26.5 7.59 0.82 0.79 0.77 0.75 0.71 0.74 0.75 0.74 8.08 7.80 7.60 7.47 7.45 7.50 7.63 •7.71 23.5 24.0 24.1 24.2 24.0 24.3 24.2 24.4 72.5 73.1 73.5 73.6 73.2 73.9 74.5 74.4 22.0 22.5 23.0 23.1 23.3 28.3 23.2 23.4 1971 Jan. Feb. Mar. Apr. May June July Aug. l 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. > Includes fees & charges amortized over a.10 year period in addition to the contract interest rate. Derived by FRB. «