Full text of H.16 Capital Market Developments : October 23, 1973
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CAPITAL MARKET DEVELOPMENTS Iviv October 2 3 ^ 1 9 7 3 Prepared by the C A P I T A L MARKETS SECTION in c o n j u n c t i o n with the MORTGAGE, A G R I C U L T U R A L , and CONSUMER FINANCE SECTION DIVISION O F RESEARCH AND STATISTICS BOARD OF GOVERNORS F E D E R A L R E S E R V E SYSTEM Washington, D C. 20551 LUD INDEX DEVELOPMENTS IN THE CORPORATE AND MUNICIPAL BOND MARKETS CAPITAL MARKET YIELDS CAPITAL MARKET VOLUME STOCK MARKET MORTGAGE MARKET SYMBOLS e ESTIMATE P PRELIMINARY r REVISED n.a. NOT AVAILABLE — — DATA DO NOT EXIST Table 1 3 YIELDS, VOLUME AND RECEPTION C O R P O R A T E B O N D MARKET VOLUME YIELDS WEEK ENDING 1973 - S e p t . Oct. NEW ISSUE 1 Aaa UTILITY RECENTLY 2 OFFERED Aaa UTILITY GROSS 3 OFFERINGS ($ MILLIONS) PER CENT SOLD BY END OF WEEK NEW ISSUES 4 IN SYNDICATE ($ MILLIONS) 7 14 21 28 7 7 8 7. 94 74 03 81 8,.02 8..06 8.. 03 7..84 70 150 236 170 79 100 96 100 15 0 10 0 5 12 19 7. 75 7..96 8. 05p 7..90 7,. 8 8 7.. 98p 350 350 353 83 100 72 60 0 99 MUNICIPAL B O N D MARKET VOLUME YIELDS WEEK ENDING 1973 - S e p t . Oct. MOODY'S NEW ISSUE BOND BUYER 2Q-BOND INDEX GROSS 3 OFFERINGS ($ MILLIONS) PER CENT SOLD BY END OF WEEK NEW ISSUES 4 IN SYNDICATE ($ MILLIONS) 7 14 21 28 5.00 5.00 4.90 4.70 5.18 5.18 5.05 5.00 134 . 341 285 673 91 81 88 82 36 89 58 136 5 12 19 4.70 4.70 4. 75 5.04 4.99 5.05 461 302 792 78 74 74 177 155 384 NOTES: 1 Federal Reserve series of implied yield on newly issued, Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection, released from price restrictions sometime during the last four weeks. 3 Estimated by F.R. on the basis of available data. 4 Corporate Market: Salomon Brothers Bond Market Roundup; Municipal Market: Weekly Bond Buyer. Data are adjusted by Federal Reserve when necessary to make coverage of this series consistent with the gross offerings series. H.16 Table 2 HIGH GRADE BOND YIELDS NEW I S S U E A a a UTILITY DATE 1 RECENTLY OFFERED A a a UTILITY 2 MOODY'S SEASONED CORPORATE Aaa 3 U . S . GOVT. 2 0 - Y E A R C O N S T A N T MATURITY 4 5 B O N D BUYER 2 0 - B 0 N D INDEX 1971 - High Low 8.26 (7/30) 7.02 (2/5) 8.23 (1/1) 7.17 (12/31) 7.71 (8/12) 7.06 (2/12) 6.51 (6/18) 5.69 (3/23) 6.23 (6/23) 4.97 (10/21) 1972 - High Low 7.60 (4/21) 6.99 (11/24) 7.46 (5/12) 7.17 (1/7) 7.36 (4/28) 7.05 (12/8) 6.19 (4/14) 5.74 (11/17) 5.54 (4/13) 4.96 (10/21) 1973 - High Low 8.52 (8/10) 7.29 (1/21) 8.32 (8/10) 7.28 (1/5) 7.77 (8/24) 7.11 (1/5) 7.79 (8/10) 6.42 (1/5) 5.59 (8/3) 4.99 (10/11) 7 14 21 28 7.94 7.74 8.03 7.81 8.02 8.06 8.03 7.84 7.64 7.63 7.65 7.60 7.26 7.34 7.32 7.13 5.18 5.18 5.05 5.00 5 12 19 7.75 7.96 8.05p 7.90 7.88r 7.98p 7.59' 7.56r 7.58p 7.147. lOr 7.20p 5.04 4.99 5.05 1973 - S e p t . Oct. 1 NOTES: 1 Federal Reserve series of implied yield on newly issued, Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection released from price restrictions sometime during the last 4 3 Weekly average of daily closing figures. 4 Weekly average of daily figures. U.S. Treasury data. 5 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. Weekly Bond Buyer data. H.re Table 3 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS IN MILLIONS O F D O L L A R S G R O S S PROCEEDS 1 CORPORATE PERIOD 1973 1 1972 1 2 S T A T E A N D LOCAL 1971 1973 1 1972 1 1971 2,327 1,962 3,933 3,205 3,369 3,229 3,115 3,000 6,075 1,974 1,499 2,451 1,776 2,005 2,239 May June 2.497 2,543 3,558 3,275 3,598 4,341 4,042 3,300 4,375 1,818 1,921 2,072 1,989 2,017 2,270 July 2,470 3,582 2,893 2,720 4,147 2,532 3,768 1,958 1,805 1,966 1,726 1,989 1,903 2,098 3,791 3,377 3,396 3,387 3,704 3,673 2,200 1,861 1,794 1,728 2,264 2,068 9,803 11,214 9,195 10,564 12,190 11,688 10,447 10,764 6,020 6,276 5,494 5,855 6,841 6,081 5,990 6,060 21,017 30,212 40,776 23,844 34,325 45,089 12,296 17,790 23,645 12,812 18,902 24,962 January February March April August September October November December Q1 Q2 Q3 Q4 1st Half 3 Qtrs. Year 8,222 8,598 5,924 5,811 2,732 1,851 2,258 - 1,891 2,167 2,013 NOTES: 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts. H.16 Table 4 NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER IN MILLIONS OF DOLLARS G R O S S PROCE EDS BY TYPE OF I S S U E PERIOD BONDS TOTAL PUBLICLY OFFERED COMMON AND PRIVATELY PREFERRED PLACED STOCK G R O S S P R O C E E D S BY TYPE OF ISSUER 1 MEMO I S S U E S INCLUDED PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS F O R E I G N (CONVERTIBLE 11,214 9,195 10,564 4,634 4,192 4,158 2,781 1,867 3,147 3,798 3,136 3,258 245 57 245 449 836 428 2,109 1,629 1,398 3,495 2,680 2,934 1,369 856 1,079 4,240 4,030 5,151 1973 - I II 8,222 8,598 2,945 3,345 1,405 2,852 3,971 2,407 105 145 112 118 898 1,411 2,427 2,886 1,215 964 3,683 3,340 1972 - June 1972 - I I III IV 4,341 1,336 1,218 1,786 130 131 767 1,538 800 1,235 July Aug. Sept. 3,582 2,893 2,720 1,807 1,523 863 657 421 789 1,118 948 1,070 3 17 37 450 183 203 574 452 603 798 635 1,247 586 237 33 1,624 1,568 838 Oct. Nov. Dec. 3,791 3,377 3,396 1,773 1,361 1,024 564 982 1,601 1,454 1,034 770 28 124 93 162 171 95 383 426 589 1,280 794 860 371 658 50 1,757 1,499 1,895 1973 - J a n . Feb. Mar. 2,327 1,962 3,933 989 641 1,315 287 316 802 1,050 1,004 1,817 14 27 64 81 28 3 176 213 509 900 596 931 33 174 1,008 1,218 980 1,485 Apr. May June 2,497 2,543 3,558 938 1,049 1,358 801 673 1,378 758 822 822 63 44 38 25 82 11 282 399 730 519 771 1,596 258 374 332 1,439 1,000 901 July 2,470 855 869 746 77 0 523 862 296 789 NOTES: 1 MANUFACTURING Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: and Exchange Commission. Estimated data are derived by Digitized forSecurities FRASER Federal Reserve based upon available information. Table 5A LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 October 1 t h r u October 19,. 1973 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY C O U P O N RATE OFFERING YIELD 7.75 7.74 7.80 7.67 A Aaa 8.40 5.00 8.38 8.00 8.00 8.40 5.00 8.38 8.00 7.91 A MOODY'S RATING CORPORATE C a r r i e r Corp. Southwestern B e l l T e l . Co. P h i l a d e l p h i a E l e c . Co. Puget Sound Pwr. & L t . Con Edison Co MGIC INV Corp MGIC INV Corp C h r y s l e r Corp. Commonwealth Edison P a c i f i c Gas & E l e c t r i c F l o r i d a Pwr. & Lgt. F l o r i d a Pwr & Lgt Inexco Oil M e t r o p o l i t a n Edison S.F. debs Debt Com s t k Com s t k 1 s t & r e f mtg Conv sub deb S . F . debs S.F. debs 1 s t mtg. Pfd. s t k Com. s t k Pfd s t k Com s t k Pfd s t k 50.0 300.0 96.3 15.0 150.0 100.0 100.0 200.0 125.0 50.0 43.0 40.0 15.4 15.0 2013 - —— —— 2003 1993 1988 1998 2103 — A Aaa •i j NOTES: • Rights offering. 1 Includes corporate and other security offerings of $15 million and over. H.16 / . ' '• 1 Table 5B LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY 1 October 1 t h r u October 19, 1973 AMOUNT (MILLIONS OF DOLLARS) C O U P O N RATE OFFERING YIELD MOODY'S RATING S T A T E AND LOCAL Michigan S t a t e Housing Dev. Auth Lucas Co., Ohio Lucas Co., Ohio Lucas Co., Ohio King C o . , Wash. Richmond Metro Auth. Allegheny Co N.Y. Housing Dev. Corp. F a i r f a x Co., Va. M i n n e s o t a , S t a t e of Colorado S p r i n g s , Colo. Orlando, F l a . U t i l i t i e s Comm. Ohio Air Qty. Dev. Auth. Northern Ky. S t . C o l l Romulus, Mich., Comm S/D W i c h i t a , Kansas W i c h i t a , Kansas New York C i t y Vermont Los Angeles Co. Flood Cont D i s t , C a l i f P u e r t o Rico Michigan C i t y , Indiana G.O. 70.0 1st mtg rev 18.2 1st mtg rev 5.0 1 s t mtg rev 5.8 Ref 30.4 Rev 73.3 P o l l cont rev 16.0 G.O. 63.0 G.O. 32.0 G.O. 30.0 G.O. 15.0 Rev 15.0 P o l l cont r e v 18.5 Rev 12.6 G.O. 11.5 Rev 4.7 Rev 12.2 G.O. 369.8 G.O. 15.0 Rev 27.0 G.O. 60.1 Rev 23.5 1974-2016 2004 1992 1974-1986 1974-2011 1974-2023 2003 1974-2023 1974-1993 1974-1993 1974-1993 1975-2003 1998 1975-2013 1974-2003 1977-1989 2004 1975-2014 1975-1997 1974-2003 1975-1997 2003 5.85 4 . 6 0 - 5 75 6.00 5.90 5.00-5.40 4.50-5.50 5.00-5.90 5.85 4.66 4.48 4.45 4.88 6.62 5.73 5.37 5.00-5.90 4.30-5.50 4.20-4.70 4.00-4.70 4.10=5.30 6.50 4.60-6.10 N. R. 5.20-5.75 5.06 5,48 4.78 5,48 5.70 4.40- -6.10 4.40-5.60 4.10-5.30 4.40-5.60 5.70 6. 08 a-1 Baa-1 Aa Aaa Aa Aa Baa Baa-1 Baa — 1 —— A A-l Aa A-l A NOTES: 1 Includes state and local security offerings of $10 million and over. 2 In case of State and local government securities, G.O denotes general obligation; Rev. Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by lease payments. 3 Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal Agencies. H.16 Table 5B Continued LARGE LONG-TERM PUBLIC SECURITY ISSUES FOR NEW CAPITAL OTHER THAN U.S. TREASURY October 1 t h r u October 19. 1973 AMOUNT (MILLIONS OF DOLLARS) COUPON RATE OFFERING YIELD MOODY'S RATING STATE AND LOCAL Mass. Health & Ed, Fac. Auth Mass H e a l t h & Ed Fac. Auth Mass H e a l t h & Ed Fac. Auth Taylor Co., Fla. T a y l o r Co. , Fla. T a y l o r Co. , Fla. Bellevue Sch. D i s t . #405 Wash A u r o r a , Colo. San A n t o n i o , Texas Rev Rev Rev Rev. Rev. Rev. G.O. Rev. G.O. 2.5 6.3 6.1 3.5 21.5 2.5 11.9 9. 9 15.0 2005 1993 1976-1988 1993 2003 1983-1987 1974-1991 1999-2003 1976-1993 __ - —— - —— —- 5.44 4.58 4 . 6 0 - 5 . 25 5.13 5.40 4.70-4.80 4.40-5.00 5.35-5.40 4 . 0 0 - 5 . 20 A A A Aaa Aaa Aaa - - A Aa H.16 Table 6A FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY as of October 19, 1973 ISSUER TYPE 1 AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING CORPORATE Boston Edison Co. Ohio Bell Telephone New Bedford Gas & Edison L t . Co. Rochester Gas & E l e c t r i c Co. Massachusetts E l e c t r i c Co. J . P. Morgan & Co. GMAC P u b l i c S e r v i c e E l e c t r i c & Gas Co. Consumers Power Co. Northern S t a t e s Power Pennsylvania Power & Light Co. C & P Telephone Co. of Wash. Carolina Telephone & Telegraph Co. F i r s t Va. Mtg. & Real E s t a t e Inv. Trs p. Investors Diversified Lionel Edie Cap. Fd. T o t a l Petroleum Ltd. P u b l i c S e r v i c e Co. of I n d i a n a Wisconsin Power & Light Co. C e n t r a l I l l i n o i s P u b l i c S e r v i c e Co. -Georgia Pwr. Co. Georgia Power Co. C a r o l i n a Power & Light Co. Dayton Power & Light Co. New England E l e c t r i c System *Duke Power Co. ^Southern Railway *Gen Telephone Co. of F l o r i d a D e t r o i t Edison Co. *Carolina Power & L i g h t Co. Columbus & So Ohio Elec Co. T r a n s c o n t i n e n t a l Gas P i p e l i n e Co. * D a l l a s Power & Light Co. "'Southern Co. ^Arkansas Power & Light Co. ^General Telephone Co. of Ind. AT&T Metro Edison Co. Com s t k Debs Notes Com s t k Pref s t k Com deb Debs Bds Pr e f s t k Com s t k ( r g t s ) Com s t k Bds Debs Sr Sub n o t e s Bene I n t Com s t k Com s t k Com s t k Com s t k Pref s t k Bds Pfd Com s t k Bds Com s t k Debs Equip t r u s t Bds Com s t k 1st Mtg Bds Bds Pfd Com s t k Pfd Pfd s t k Pfd s t k 1st mtg 31. 0 200.0 20.0 20.9 20.0 150.0 200.0 100.0 55.0 51.4 44.5 60. 0 30.0 20.0 12. 0 105.0 15.0 40.0 15. 6 15.0 15. 0 25.0 69.0 40.0 30.0 100.0 15.0 50. 0 80.0 100.0 45.0 50.0 30.0 175.0 15.0 15.0 500.0 40.0 Oct . 23 Oct,. 23 Oct,. 24 Oct,. 24 Oct., 24 Oct.. 25 Oct. 25 Oct. 29 Oct. 30 Oct. 30 Oct. 30 Oct. 31 Oct. 31 Oct. Oct. Oct. Oct. Nov. 1 Nov. 1 Nov. 1 Nov. 7 Nov. 7 Nov. 8 Nov. 8 Nov. 12 Nov. 12 Nov. 14 Nov. 14 Nov. 14 Nov. 19 Nov. 20 Nov. 20 Nov. 26 Nov. 27 Nov. 28 Nov. 29 Nov. Nov. NOTES: * Included in table for first time. 1 Includes corporate and other security issues of $15 million and over. H.16 Table 6B n FORTHCOMING LARGE LONG-TERM PUBLIC SECURITY OFFERINGS FOR NEW CAPITAL OTHER THAN U.S. TREASURY as of October 19. 1973 ISSUER TYPE 1 AMOUNT (IN MILLIONS OF D O L L A R S ) » APPROXIMATE DATE O F OFFERING S T A T E & LOCAL K n o x v i l l e , Tenn. N a s h v i l l e & Davidson Co. Tenn. Jackson Co., Miss . C a l i f o r n i a , S t a t e of Florida Kansas South C a r o l i n a Barton Co. Dev Auth, Ga. Oakland U.S.D. Cal Baltimore Co. , Md. *0hio L a n s i n g , Mich E a s t Chicago, Ind. T r i n i t y River Auth of Texas Maryland U n i v e r s i t y of Houston ^ U n i v e r s i t y of Houston Sacramento, C a l i f Muni U t i l D i s t * D i s t of Columbia *New England Power Co. Maryland Dept of Trans Rev Rev Rev Bds P o l l Cont Rev Rev G.O. P o l l cont r e v G.O. P o l l Cont Rev Rev ^ Rev Rev Rev G.O. G.O. Rev Rev G.O. 1 s t Mtg. Rev 10.0 26.5 17.0 100.0 32.4 40.0 48.5 41.0 10.8 42.0 18.5 14.0 12.5 23.0 57.9 25.0 25.0 50.0 65.1 40.0 47.2 Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Nov. Nov. Nov. Nov. Nov. Dec. Dec. Dec. 23 23 24 30 31 31 31 14 14 14 14 14 1 11 11 NOTES: 1 Includes state and local government issues of $10 million and over. 2 Includes foreign government and International Bank for Reconstruction and Development issues and issues of Federally sponsored agencies. H.16 Table 7 o STOCK PRICES AND VOLUME 1 STOCK PRICES DATE NYSE INDEX 1971 - High Low 57.76(4/18) 48.73(1/4) 1972 - High Low 1973 - High Low 3 1 DJ I N D U S T R I A L S ! 4 AMEX | 950.82(4/28) 26.68(4/28) 112.66(12/31) 797.97(11/23) 22.72(1/4) 100.52(2/26) 2 TRADING VOLUME NASDAQ NYSE | AMEX | NASDAQ 22.1(2/12) 11.0(9/17) 6.7(2/5) 2.7(8/13) 65.14(12/11) 1036.27(12/11) 28.53(4/14) 133.28(4/21) 56.23(1/3) 25.61(1/3) 114.88(1/7) ^ 889.30(1/3) 21/8(11/10) 11.2(9/8) 7.4(3/10) 2.6(9/8) 11.7(3/10) 6.5(9/10) 65.48(1/11) 53.36(7/6) 26.70(1/8) 136.18(1/12) 22.20(6/25) 99.39(7/5) 21.5(9/28) 10.2(7/6) 4.8(1/12) 1.5(8/24) 10.4(1/12) 4.0(7/6) 1051.70(1/11) 851.90(8/22) 8.9(12/30) 5.1(11/26) Sept, 7 14 21 28 56.12 55.92 57.73 58.51 898.63 886.36 927.90 947.10 101.58^ 99.77 102.75 105.41 107.02 106.07 109.46 111.20 14.9 12.4 21.2 20.4 2.1 2.1 3.4 3.3 5.6 4.9 7.2 6.8 Oct. 5 12 19 59.34 60.25 971.25 978.63 963.73 106.47 109.82 108.96 112.56 114.10 113.25 19.6 19.4r 18.2 3.8 3.9r 3.1 7.1 7.1r 6.2 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 4 Volume figures are weekly averages of daily figures (millions of shares). Trading is normally conducted for 5% hours per day and 5 days per week, or 27% hours per week. In recent years, however abbreviated trading to the extent, and over the time periods, shown below: From Through Hours/Day Pays/Week Hours/Week January 3, 1969 July 7, 1969 January 2, 1970 July 3, 1969 December 31, 1969 May 1, 1970 4 4% 5 5 5 5 20 22% 25 Average dollar value of shares listed. 5 AMEX Market Value I n d e x r e p l a c e s AMEX P r i c e L e v e l I n d e x . H.lfi Table 8 13 SECURITY CREDIT REGULATED MARGIN CREDIT EXTENDED BY END OF PERIOD BROKERS ON 1 BROKERS ON 2 MARGIN CONVERTIBLE STOCK BONDS BANKS 3 UNREGULATED NONMARGIN S T O C K CREDIT AT B A N K S OTHER SECURITY CREDIT AT BANKS OUTSTANDING 1972- J u l y Aug. Sept. Oct. Nov. Dec. 7,660 7,780 7,800 7,800 7,890 7,900 248 246 248 250 249 254 979 1,032 1,008 943 902 865 1,772 1,800 1,871 1,875 1,871 1,896 1,285 1,298 1,255 1,351 1,296 1,528 1973- Jan-, Feb. Mar. Apr. May June July Aug. Sept. 7,700 7,500 7,200 7,040 6,540 6,180 6,010 5,830 5,730 249 248 244 232 224 215 216 210 865 867 879 872 866 871 n.a. n.a. 1,940 1,954 1,917 1,969 2,010 1,964 n.a. n.a. 1,484 1,508 1,566 1,482 1,502 150 120 20 4 -2 2 2 -1 5 24 53 -24 -65 -41 -37 128 28 71 4 -4 25 11 13 - 43 96 45 132 44 14 -37 52 41 46 n.a. -44 24 58 32 20 6/ 6/ 6/ , £/ 6/ 6/ C H A N G E IN OUTSTANDING 1972 - J u l y Aug. Sept. Oct. Nov. Dec. 1973 - J a n . Feb. Mar. Apr. May June July Aug. Sept. - — 90 10 -200 -200 -300 -160 -500 -360 -70 -180 -100 -5 -1 -4 -12 -8 -9 1 ' -6 ' 2 12 -7 -6 -5 n.a. n.a. NOTES: 1 Margin account debt as reported by the New York Stock Exchange, excluding credit for subscription issues and convertible bonds. 2 New York Stock Exchange data. 3 June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which accounted for 60 per cent of security credit outstanding at banks on June 30. 4 Nonmargin stocks are those not listed on a national securities exchange and not included on the Board of Governors of the Federal Reserve System's list of OTC margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no 5 Includes loans to purchase or cany margin stock if these are unsecured or seemed entirely by unrestricted collateral. 6 Discontinued. H.16 5 Table 9 SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN MILLIONS OF DOLLARS NET FLOW 1 ANNUAL 3 GROWTH RATE TOTAL S A V I N G S & LOAN A S S O C I A T I O N S MUTUAL S A V I N G S B A N K S REGULAR D E P O S I T S NET NEW MONEY 2 S H A R E CAPITAL NET FLOW ANNUAL 3 GROWTH RATE NET NEW MONEY 2 DEPOSITS NET FLOW ANNUAL 3 GROWTH RATE NET NEW MONEY NOT SEASONALLY A D J U S T E D 1970 1971 1972 4,517 9,621 9,788 6.8 13.5 12.0 936 5,678 5,397 10,965 28,230 32,902 1972 - June July Aug. 1,136 582 419 - — 868 414 293 3,738 2,290 1,801 1973 - J u n e July Aug. 823 -412 -425 -35 -603 -575 3,277 -225 -1.186 p 1973 - Feb. Mar. Apr. May June July i Aug. p 465 579 387 451 777 -173 -117 __ - — —— 6.1 7.5 5.0 5.8 9.9 -2. 2 -1.5 __ —— —— - -- - - 8.1 19.3 19.5 __ — __ 15,482 37,851 42,690 1,626 2,159 1,708 4,874 2,872 2,494 2,573 890 4,100 -633 -1,611 855 -915 -1,784 —— -291 —— -1.209 SEASONALLY ADJUSTED 1,834 2,401 1,259 1,945 2,395 535 -242 10.4 13.5 7.0 10.8 13.2 2.9 -1.3 —„ — — — —— 2,299 2,980 1,646 2,396 3,172 9.1 11.7 6.4 9.3 12.2 362 -359 1.4 -1.4 NOTES: 1 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. 2 New deposits net of both withdrawals and interest. Data for S&L's are for insured associations only, which represent 96 per cent of industry total resources. 3 Annual growth rate for monthly data is the annualized monthly percentage increase in deposits. Digitized FRASER Source:for National Association of Mutual Savings Banks and Federal Home Loan Bank Board. 7.7 17,5 17.0 6,221 26,331 29,281 5,285 20,653 23,884 ----- 2 Table 10 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS OF DOLLARS, S E A S O N A L L Y A D J U S T E D NET C H A N G E OUTSTANDING COMMITMENTS PERIOD TOTAL ALL S A V I N G S MUTUAL & LOAN S A V I N G S BKS5 ASSOCIATIONS (N Y. S T A T E ) ( B i l l i o n s of D o l l a r s 17.7 14.0 3.7 1972 - J a n . Feb. March April May June July Aug. Sept. Oct. Nov. Dec. 18.0 19.1 19.7 20.1 20.6 20.7 21.0 21.8 22.9 23.6 24.3 24.9 14.1 15.0 15.4 15.7 16.2 16.3 16.5 17.3 18.1 18.7 19.4 20.0 3.9 4.1 4.3 4.4 4.4 4.4 4.5 4.5 4.8 4.9 4.9 4.9 1973 - J a n . Feb. Mar. Apr. May June July Aug 25.9 26.6 26.1 25.3 24.6 24.2 22.9 21.9 20.8 21.6 21 .3 20. 7 20.1 19.8 18.6 17.8 1971 - Dec. TOTAL MUTUAL ALL S A V I N G S & LOAN SAVINGS BKS ASSOCIATIONS (N.Y. S T A T E ) Seasonally Adjusted)r/ .59 " .38 .21 .24 1.19 .49 .42 .60 .53 .36 .83 .99 .73 .73 .68 .11 .91 .38 .29 .55 .60 .26 .76 .77 .63 .69 .65 .13 .28 .11 .13 .05 -.07 .10 .07 .22 .10 .04 .03 5.1 5.0 4.8 4,6 4.5 4.4 .98 .62 -.54 -.68 -.84 -.38 .81 .74 -.32 -.53 -.67 -.29 .17 -.12 -.22 -.15 -.17 -.09 4.3 4.1 -1.25 -.94 -1.15 - .79 -.10 -.15 NOTES: Based on data from Federal Home Loan Bank Board and Savings Banks Association of New York State. Both series include a minor amount of nonresidential commitments; S&l, commitments also include loans in process. Net changes are derived directly from unrounded end of period outstanding levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. H.16 NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN MILLIONS OF DOLLARS PERIOD 1971 - Mar. Apr. May June July Aug. Sept. ^ Oct. Nov. Dec. 1972 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1973 - J a n . Feb. Mar. Apr. May June 1973- July Aug.p Sept.p Oct. TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES -439 -696 -388 -483 +604;^ +335 +453 +942 -96 +563 -259 +169 ' +176 +138 +129 +599 -367 +120 • +624 -112 +628 +273 INTERMEDIATE AND LONG-TERM ISSUES TOTAL -100 -451 -453 -136 +411 +200 +526 +849 +300 +500 FHLB -450 -651 -452 -337 -39 -87 -28 +200 -250 - - " +3.00 - — - — FNMA +350 +200 -1 +201 +450 -13 +554 +649 +550 +500 — - - — — +399 +248 -1 +299 +813 -1 -1 +100 -47 +311 +475 -403 -2 -1 -200 -1 -1 -1 +200 +131 +452 +582 +1,267 +1,769 +740 +122 +312 +378 +1,303 +1,600 +961 +251 -1 +1,195 +1,200 +600 +1,475 +1,693 +1,911 +1,528 +1,350 +1,850 + 998 +1,350 +1,500 -— — +500 -1 +814 - - - - — - - - - — +103 +337 -1 — +100 -150 -1 +400 — Nov. from the Treasury S u r v e y of O w n e r s h i p . - - +602 +250 — Dec. NOTES: Based on data FHLMC -25 +76 +116 +51 — +1 +400 +6 +10 +379 +107 - - +361 +530 —— -- —— +350 FNMA SHORT-TERM DISCOUNT NOTES -339 -245 +65 -347 +193 +135 -73 +93 -396 +63 -259 -230 -72 +139 -170 -214 -366 +121 +524 -65 +317 -202 +9 +140 +204 -3 6 +169 -221 -58 +343 +61 Table 12 NET CHANGE IN MORTGAGE HOLDINGS IN MILLIONS OF DOLLARS PERIOD TOTAL INCLUDING FNMA-GNMA FINANCIAL INSTITUTIONS TOTAL COMMERCIAL BANKS MSB's S & L's I N S U R A N C E FNMA-GNMA COMPANIES Not S e a s o n a l l y A d j u s t e d 1969 1970 1971 1972 24,074 21,736 41,647 57,107 19,699 16,827 39,259 55,081 5,404 2,462 9,940, 15,999 2,682 1,845 3,938 5,377 9,561 10,172 24,160 31,982 2,052 2,348 1,221 1,723 4,375 4,909 2,388 2,026 1972 - Aug Sept Oct Nov Dec 5,931 5,286 4,779 5,114 5,964 5,563 4,918 4,684 4,9845,831 1,600 1,400 1,400 1,500 1,000 553 502 472 517 598 3,313 2,926 2,673 2,712 3,121 97 90 139 255 1,112 368 137 95 130 133 1973 - J a n Feb Mar Apr MayJune July Aug 3,760 3,454 4,913 4,364 5,390 6,419 5,482 3,565 3,388 4,844 4,368 5,554 6,164 4,875 458 331 568 506 562 649 557 -- -- 900 900 1,200 1,200 1,600 1,700 1,300 1,700 2,045 2,128 2,999 2,991 3,250 3,301 2,689 2,505 162 29 77 -329 142 514 329 414. 195 . 66 69 - 4 -164 255 607 845 1972 - Aug Sept Oct Nov Dec 5,368 4,907 4,746 5,260 5,590 5,142 4,651 4,785 5,186 5,481 85 120 122 265 770 226 256 - 39 74 109 1973 - J a n Feb Mar Apr May June July Aug 4,730 4,442 4,999 4,492 5,301 5,713 5,266 4,510 4,306 4,865 4,355 5,326 5,381 4,706 230 103 108 -271 185 554 351 401 220 136 134 137 - 25 332 560 699 -- Seasonally Adjusted 1,444 516 3,097 1,154 503 2,874 1,393 501 2,769 1,535 510 2,876 1,244 517 2,950 1,159 1,116 1,254 1,201 1,490 1,485 1,209 1,542 501 437 556 555 562 572 542 2,620 2,650 2,947 2,870 3,089 2,770 2,604 2,283 NOTES: 1 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 8 9 p e r cent of the net increase estimated for all holders in 1 9 7 . 2 . 2 Beginning January 1972 data reflect activity in limited amount of conventional mortgages. H.16 T a b l e 13 NET INCREASE IN MORTGAGE DEBT OUTSTANDING IN BILLIONS OF DOLLARS, S E A S O N A L L Y A D J U S T E D ANNUAL R A T E S RESIDENTIAL QUARTER MULTIFAMILY & COMMERCIAL FARM 6.4 6.0 6.5 7 .4 9.5 9.2 10.1 11.3 2.3 2.2 1.8 1.9 6.0 5.4 5.3 5.3 10.4 10.1 10.0 10.7 2.2 2.2 1.7 1.4 . 5.0 5.2 6.3 6.6 4.8 4.6 5.1 6.8 9.8 9.8 11.5 13.4 1.5 1.5 2.1 2.2 19.2 26.5 30.1 31.9 8.0 9.4 8.8 8.9 8.1 9.5 11.1 11.0 16.1 18.9 19.8 . 19.9 .2.2 2.3 2.3 2.5 45.4 47.1 47.3 50.6 35.9 37.5 38.5 40.2 9.5 9.6 8.8 10.4 14.5 15.2 15.2 15.4 23.9 24.8 24.0 25.8 2.6 2.6 2.6 2.5 58.1 55.6 45.7 43.3 12.4 12.3 15.8 17.3 28.2 29.6 4.0 3.9 TOTAL TOTAL 1- t o 4 FAMILY MULTIFAMILY 1968 - I II III IV 28.1 26.4 25.5 29.6 19.4 18.2 17.2 20.4 16.3 15.0 13.6 16.5 3.1 3.2 3.5 3.9 1969 - I II III IV 32.0 29.1 25 .8 25 .2 23.8 21.5 18.7 18.5 19.4 16.8 14.0 13.1 4.4 4.6 4.7 5.4 1970 - I II III IV 20.7 22.9 28.5 31.8 14.4 16.8 21.3 22.8 9.4 11.6 15.0 16.2 1971 - I II III IV 37.5 47.8 52.2 54.2 27.3 36.0 -— 3 8 . 9 40.7 1972 - I II III IV 62.4 64.9 65.2 68.4 1973 - I II 77.9 76.7 COMMERCIAL • — - NOTES: 1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations and extrapolations, where required, estimated mainly by Federal Reserve. 2 May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. 3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family and multifamily mortgage debt combined. T a b l e 14 PRIVATE HOUSING PERMITS, STARTS, COMPLETIONS, AND MOBILE HOME SHIPMENTS IN T H O U S A N D S OF U N I T S , S E A S O N A L L Y A D J U S T E D A N N U A L R A T E S PERMITS.!/ PERIOD TOTAL 1—FAMILY COMPLETIONS STARTS 2 - O R MORE FAMILY TOTAL 1—FAMILY 2 - O R MORE FAMILY TOTAL 1 —FAMILY MOBILE 2 - O R MORE HOME FAMILY SHIPMENTS 1969 1970 1971 1972 1,322 1,352 1,952 2,219 626 647 928 1,033 696 705 1,025 1,186 1,500 1,467 2,085 2,379 811 813 1,151 1,309 656 898 901 1,048 1,399 1,452 1,740 2,002 808 802 1,014 1,145 592 617 692 829 1972 - August September October November December 2,281 2,366 2,318 2,226 2,399 1,065 1,029 1,138 1,013 1,001 1,216 1,337 1,180 1,213 1,398 2,424 2,426 2,446 2,395 2,369 1,373 1,382 1,315 1,324 1,207 1,051\ 1,045 1,131 1,071 1,162 1,973 1,972 1,945 1,980 2,147 1,210 1,118 1,156 1,153 1,168 763 853 789 828 980 534 494 548 666 606 1973 - J a n u a r y February March April May 2,233 2,209 2,129 1,939 1,838 2,030 1,780 1,750 1,604 1,062 1,079 1,022 945 954 934 904 805 779 1,171 1,130 1,107 994 884 1,096 876 945 825 2,497 2,456 2,260 2,123 2,413 2,128 2,191 2,066 1,763 1,450 1,372 1,245 1,202 1,271 1,124 1,247 1,116 985 1,047 1,084 1,015 921 1,142 1,004 944 950 778 2,147 2,033 2,162 2,067 2,168 2,201 1,984 1,802 1,324 1,259 1,310 1,168 1,285 1,278 1,050 1,081 823 774 851 899 883 925 935 721 648 642 737 680 661 616 569 546 July August September 413 401 497 576 NOTES: Private building permits (for 14,000 areas with permit systems, excluding farm), starts and completions are Census Bureau data, with completions converted to a seasonally adjusted annual rate by the Federal Reserve. A dwelling unit is started when excavation begins. In the case of apartment buildings, all units are considered started at that time; however, all such units are considered completed when half of the units in the structure are ready for use. Private mobile home shipments are Mobile Home Manufacturers Assoc. data converted to seasonally adjusted annual rate by Census Bureau. Digitized1for FRASER / Data f o r 1969 and 1970 based on 13,000 permit-issuing places H.16 T a b l e 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES CONVENTIONAL L O A N S PRIMARY MARKET RATE (IN PER C E N T ) NEW HOMES 1 1 PERIOD SPREAD BETWEEN R E T U R N S ON NEW A a a CONVENTIONAL UTILITY 1 AND HUD(FHA) BOND NEW HOME DISCOUNT YIELD (PERCENTAGE MORTGAGES (IN PER CENT) (BASIS POINTS) POINTS) H U D ( F H A ) INSURED L O A N S S E C O N D A R Y MARKET EXISTING H O M E S NEW HOMES SPREAD (BASIS POINTS) R ATE (IN PER CENT) SPREAD (BASIS POINTS) YIELD (IN PER C E N T ) SPREAD (BASIS POINTS) 1971 - High Low 7.95 7.55 52 01 8.05 7.65 62 06 7.97 7.32 31 07 7.8 2. 7 28 01 8.04 7.28 1972 - High Low 7.70 7.55 61 15 7.75 7.60 66 20 7.57 7.45 48 05 4.7 3. 7 14 06 7.45 7.09 1972 - J u l y Aug 7.65 7.65 7.70 7.70 7.70 7.70 27 28 , 30 32 61 55 7.70 7.70 7.75 7.75 7.75 7.75 32 33 35 37 66 60 7.54 7.55 7.56 7.57 7.57 7.56 16 18 16 19 48 41 4.4 4.5 4.6 4.7 4.7 4.6 11 10 14 13 13 14 7.38 7.37 7.40 7.38 7.09 7.15 7.70 7.75 7.80 7.90 7.95 8.05 8.40 8.85 8.95 32 35 31 44 44 41 39 49 107 7.75 7.80 7.85 7.90 8.00 8.10 8.40 8.85 8.95 37 40 36 44 49 46 39 49 107 7.55 7.56 7.63 7.73 7.79 7.89 8.19 17 16 14 27 28 25 18 4.5 4.6 5.2 5.9 6.4 7.2 9.4 15 19 17 17 16 16 21 9.18 130 5.2 -23 7.38 7.40 7.49 7.46 7.51 7.64 8.01 8.36 7.88 Sept Oct Nov Dec 1973 - J a n Feb Mar Apr May June July Aug Sept NOTES: 1 Gross yield spread is average mortgage return before deducting servicing costs, minus average yield on new issues of high-grade utility bonds with 5-year call protection. Rates on conventional first mortgages (excluding additional fees and charges) are based on unweighted HUD (FHA) field office opinions on prevailing contract interest rates in the market areas of the insuring offices, rounded to the nearest 5 basis points. For secondary market data, weighted HUD office opinions on the average bid price for HUD (FHA) loans with minimum downpayment, prepaid in 15 years, for immediate delivery, are used. H.16 Table 16 pj FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS CONVENTIONAL GOVERNMENT-UNDERWRITTEN DATE OF AUCTION AMOUNT (IN MILLIONS OF D O L L A R S ) OFFERED 1973 - J a n . Feb. Mar. Apr. 1 ACCEPTED 5 6 19 21 74.2 107.0 61.3 92.1 7.69 7.70 128.6 65.4 7.71 -- - - -- 110.3 71 .6 7.73 -- 170.8 5 6 19 21 -- 297.3 -- | 234.6 - - 107.7 -- - - 145 .9 | AVERAGE YIELD ACCEPTED 39.4 25.5 7.84 -- -- -- — 100.9 62.9 7 .89 66.0 49.6 7.92 60.3 44.3 7.95 -- 7.75 - - 168 .7 AMOUNT (IN MILLIONS O F D O L L A R S ) OFFERED „, 2 8 22 2 3 16 17 30 AVERAGE YIELD 7.81 - - -- 86.8 56.4 81.6 - — — 8.02 7.86 - -- 111.9 190 .7 7.89 -- -• -- 261.2 185 .9 7.92 111.0 128.9 88.4 88.2 8.17 8.23 14 29 258.3 212.4 187.7 140 .0 7.96 8.00 117.6 113.3 84.4 74.0 8.31 8.39 11 25 184.5 199.3 142..2 118..7 8.04 8.09 110.1 95.0 74.1 69.4 8.44 8.51 July 9 23 539.0 351.4 244, .8 181, ,4 8.38 8.54 108.4 119.0 72.5 61.7 8.67 8.79 Aug. 6 20 458.5 525.0 201, ,9 223. 8 8.71 8.95 154.3 171.3 77.4 77.2 8.98 9.27 Sept. 4 17 551.0 138.1 288. 9 107. 9 9.27 9.37 118.6 48.6 61.5 46.8 9.53 9.68 Oct. 1 15 32.5 24.8 24. 1 16. 6 9.11 8.97 9.1 18.6 7.1 16.2 9.43 9.10 May -- 216.6 — —— 8.11 - - NOTES: Average secondary market yields are gross before deduction of the fee of 38 basis points paid for mortgage servic ,,y. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for -ederal National Mortgage Association (FNMA) commitment fees and FNMA stock purchase and holding requirements on 4-month commitments. Mortgage amounts offered by bidders relate to total b i d s r e c e i v e d . H.16
@FedFRASER