Full text of H.16 Capital Market Developments : October 30, 1972
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
DECONTROLLED AFTER SIX MONTHS October 30, 1972 CAPITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. 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 3 T A B L E 1: Yields, Volume and Reception WEEK ENDING: 1972 - Sept. 1 8 15 22 29 Oct. 6 13 20 27 Nov. 3 7.41 7.38 7.34 7.44 7.42 7.16 7.19 7.23 7.23 7.24 98 371 121 252 100 n.a. n. a. 7.44 7.23 433 88 7.22 7.21 7.19 171 564 395 69 80 49 n.a. n. a.* n. a. n.a. 120e MUNICIPAL BOND MARKET VOLUME 2 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 20 | 27 ! 5.05 5.00 5.05 5.00 5.22 5.16 5.23 5.13 382 707 474 334 98 82 66 75 993 690 749 679 3 | n.a. n.a. 1 8 6 i 13 '! PER CENT GROSS . SOLD BY END OF WEEK OFFERINGS n.a. BOND BUYER SEASONED 20 BOND INDEX 15 | 22 1 29 Nov. n.a. n.a. n.a. n.a. n.a. MOODY'S NEW ISSUE Aaa WEEK ENDING: Oct. 41 90 58 86r 99r 7.48 7.30 7.34p YIELDS 1972 - Sept. CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS YIELDS MOODY'S NEW ISSUE SEASONED Aaa UTILITY ! 1 1 BONDS SCHEDULED | WITHIN 28 DAYS 320e 1 New series derived by adjusting to a Aaa utility basis, new issues of publicly-offered corporate bonds with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial and convertible issues, offerings of natural gas pipeline and foreign companies, and bonds guaranteed by the Federal Government ). For additional details and back data, see the September 1972 issue of the Federal Reserve Bulletin. The Aaa corporate yield series previously published in the L.5.8 has been discontinued. 2 Millions of dollars unless otherwise indicated. Note: See footnotes to Table 3. TABLE 2: Details on Inventories 60.0 100.0 200.0 25.0 20.0 15.0 30.0 10/18 10/19 10/24 10/25• 10/25 10/26 10/26 OFFERED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING A N D YIELD CALL PROTECTION ISSUER COUPON AMOUNT (MIL. $) DATE OFFERED DATE | RELEXSED Columbia Gas First Chicago New Eng Tel Gilbert Flexi-Van Portland Gen'l Elec Nevada Pwr & Lt Puget Sound P & L 7 6 7 4 7 7 7 1/2 3/4 3/8 3/4 3/4 5/8 3/4 7.55 6.87 7.40 4.75 7.75 7.60 7.73 A NR Aaa Ba Baa A Baa 5 yrs 7 yrs 5 yrs N.C. 5 yrs 5 yrs 5 yrs ESTIMATED PROPORTION SOLD 75% 80% 20% 80% 98% 25% 20% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK* ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER COUPON IN YIELD CALL PROT. PORTION RELEASED YIELD AMOUNT NONE INVENTORIES MUNICIPALS BLUE LIST | , IN SYNDICATE DATE 1972 - Sept. Oct. 1 CORPORATES IN SYNDICATE 29 630 73 15 6 13 20 27 650 755 824 921 51 119 193 149 51 59 145 235 N.C, - No call protection. 1 FRASER All. figures in millions of dollars. Digitized for vhich iF dai1y average of three days R1 up List is daily average ior vuck ended Friday, cxcupt for latest week ended Wednesdav. All other f i cures are as of Friday. T A B L E 3: High Grade Bond Y i e l d s DATE NEW ISSUE Aaa UTILITY 1970 - H i g h Low 1971 - High Low 1972 - H i g h Low 1972 - O c t . « U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS 8.60 7.48 (7/3) (12/21) 7.55 6.17 (5/29) (12/18) 7.12 5.33 8.26 7.02 7.71 7.06 (8/13) (2/12) 6.51 5.69 (6/18) (3/23) 6.23 (6/23) 4.97 (10/21) 7.36 7.16 (4/28) (8/1) 6.19 5.92 (4/14) (8/18) 5.54 4.99 (7/30) (2/5) 7.44 7.48 7.30 7.34p 7.23 7.22 7.21 7.19 6.07 6.02 6.00 5.96 5.22 5.16 5.23 5.13 N e w issue A a a u t i l i t y , w i t h c a l l p r o t e c t i o n , a d j u s t e d (as d e s c r i b e d in f o o t n o t e 1 of T a b l e 1) to a A a a b a s i s . 2 W e e k l y a v e r a g e of d a i l y figures. A v e r a g e term of b o n d s included is 22-24 years. 3 W e e k l y a v e r a g e of daily figures. 4 T h u r s d a y figures. T h e a v e r a g e r a t i n g of the 20 b o n d s used in this index falls m i d w a y b e t w e e n the four top groups as classified b y M o o d y ' s Investors Service. N o t e - - H i g h s and lows are for i n d i v i d u a l series and m a y be on d i f f e r e n t dates for d i f f e r e n t series. 4 9.43 (6/19) 7.72 (12/11) 7.60 (4/21) : 7.08 (3/10) 6 13 20 27 MOODY'S SEASONED CORPORATE Aaa 2 (5/29) (12/11) (4/13) (1/13) T A B L E 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS ! CORPORATE 1 PERIOD STATE AND LOCAI* 2 1972 1971 1970 1972 1971 January February March 3,205 3,369 3,229 3 ,115 3 ,000 6 ,075 2 ,636 1 ,802 3 ,539 i ,776 2 ,002 2 ,237 2 ,732 1 ,851 2 ,258 1 ,340 1 ,214 1 ,555 April May 3,275 3,598 4,341 4 ,042 3 ,300 4 ,375 3 ,170 3 ,909 3,, 3 8 9 2 ,114 1 ,986 2 ,224 1 ,891 2 ,167 2 ,013 1 ,647 996 1 ,085 July August September 3,436 2,833 2,750e 4 ,147 2 ,532 3 ,768 2 ,768 2 ,274 3 ,518 1 ,771 1 ,918 1.,693 1 ,989 1 ,903 2 ,098 1 ,348 1 ,359 1 ,758 October November December 3,550e 3 ,387 3 ,704 3 ;,673 3 ,777 4,,182 3: ,980 1 :,850e 1 ,728 2 ,264 2,,068 1 ,924 1 ,748 2 ,190 9,803 11,214 9,019e 12.,190 11,,688 10,,447 10,,764 7.,977 10,,468 8,,560 11, 939 6,,015 6 j,325 5, 382 6,,841 6,,081 5,,990 6, 060 4;,109 3,,728 4,,465 5,,862 21,017 30,036e 23, 8 4 4 34, 325 45, 089 18, 445 27, 005 38, 944 12, 339 17, 722e 12, 912 18, 902 24, 962 7, 837 12, 302 18, 164 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1 2 ; I 1970 1 Securities and Exchange Commission estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. T A B L E 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) UARTI'R OR MONTH GROSS PROCEEDS BY TYPE OF ISSUER MFG. PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS 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 ,202 2= 2.,543 2 3,910 2,,651 3,,041 896 2,,263 11,053 4,753 3,331 4,164 • I II Ille 9,805 11,214 9,019 5, 361 4,,634 4,,176 1,593 2,781 1,703 2,851 3,798 3,140 74 245 17 511 449 830 1,,525 2, ,109 L ,687 2,,261 3,,495 2,,498 1 ,476 = 1.,369 842 4,541 4,240 3,990 - Aug. Sept. 2,532 3,768 1,,428 1,,966 416 606 687 1,196 34 8 160 293 474 1:,146 849 1,,070 359 282 850 1,271 Oct. Nov. Dec. 3,387 3,704 3,673 1,,942 2.,003 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:,907 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 3,275 3,598 4,341 3,436 2,833 2,750 1:,622 1 ,676 1 ,336 1 ,803 1 ,523 850 789 774 1,218 534 369 800 864 1,148 1,786 1,100 940 1,100 15 100 130 92 226 131 442 183 205 581 761 767 568 419 700 1 ,219 738 1 ,538 767 631 1 ,100 178 391 800 582 235 25 1,297 1,708 1,235 1,519 1,546 925 Apr. May,' Junfe July Aug. Sept.e/ 1 TOTAL GROSS PROCEEDS BY TYPE OF ISSUE COMMON MEMO: BONDS AND PUBLICLY PRIVATELY PFD. ISSUES INCLUDED OFFERED PLACED STOCK FOREIGN | CONVERTIBLE — 17 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 Issues for New Capital (Other than U.S. Treasury) 1 Oct. 2, 1972 thru Oct. 27, 1972 ISSUER Philadelphia Elect G e n ' T Elect Credit Corp Mich-Wise. Pipeline Southern New England Tel Co Citizens & So Realty Inv Consumers Pwr Consumers Pwr Household Finance Co GTE of Southwest Louisiana Land Offshore Exploration Massachusetts Elec Co Atlantic City Elect Northeast Utilities Metropolitan Edison United Tel of Pa Pacific Pwr & Lt Pacific Pwr & Light Co M-G-M Texas Elect Svc Potomac Elect Southwestern Pub Serv Co Ohio Pwr Co Columbia Gas System Central Tel Co M o n t a n a Dakota Util Witco Chem Corp Southeast Banking Westinghouse Credit Corp First Chicago TYPE2 Cm st Deb 1st m t g Pref Deb Cm st Bonds Deb Debs Conv debs Bonds Cm st Cm st Deb 1st mtg Pref 1st mtg Bonds Pref Cm st Bonds Bonds Deb 1st mtg 1st mtg Bonds Conv deb Deb Debs 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 20.0 25.0 60.0 30.0 20.0 25.0 35.0 75.0 100.0 COUPON RATE OR NET INTEREST COST MATURITY -- — OFFERING YIELD —— 1978 6 3/4 6.94 7.70 7.52 6.75 2002 1997 2002 7 1/2 7 1/2 7 1/2 7.45 7.50 7.60 1982 2002 (4) 7 3/4 • -- 1980 1992 7.00 7 5/8 — — — — — 1997 2002 . — 2002 1992 — . -— 8 1/8 7.624 7.93 7 3/4 9.00 7.44 8.00 7.625 7.85 7.80 9.00 7.40 7.63 7.75 7 1/2 7.60 7 5/8 7,-45 4.75 7.60 6 3/4 7.54 7.65 7.55 7.60 7.58 7.45 4.75 7.60 6.87 -- 2002 2002 1997 1997 1992 1997 1997 1997 1980 7.60 MOODY' RATING — — A -— Aa A -- A — Baa -A Baa Baa — Aa A A Aa A A --- T A B L E 6: Lame Long-term Public Security Issues for New Capital (conlimi (Other than U.S. Treasury)' Oct. TYPE ISSUER Ford M o t o r Credit Ford M o t o r Credit Pa Pwr & Lt A h m a n s o n , H . F . , & Co Public S e r v . E & G Orange & Rockland Util N e v a d a Pwr Puget S o u n d Pwr & Lt N e w E n g l a n d T e l & Tel G e o r g i a Pwr S e d c o Inc. P o r t l a n d G e n ' l Elect Portland G e n ' l Elect Co N o r t h e r n I n d i a n a Pub S e r v i c e Co G i l b e r t F l e x i - V a n Corp Quaker O a t s Co. United Jersey Banks F l o r i d a T e l e p h o n e Corp 2 Debs Notes Cm Cm st 1 AMOUNT (MILLIONS OF DOLLARS) 2, COUPON ! R A T E OR M A T U R I T Y | N E T INTERI EST COST 1972 thru O c t . • H •TKI I:.( j RATING VI 1.1.1) 1992 1980 Pref Cm 50.0 100.0 48.5 22.4 76.0 24.9 -- -- 1st m t g 1st m t g Deb Pref Com s t k 1st m t g Com stk Cum pref Conv deb C o m stk S.F. debs 1st m t g 15.0 15.0 200.0 75.0 27.0 20.0 20.0 30.0 25.0 23.6 20.0 13.0 2002 2002 2007 7.63 7.75 7.46 -- —— 2002 7.75 7. 75 Baa 4.75 4,,75 Ba 7.75 7.65 7.,75 7..65 A 7.50 7.00 7. 50 6. 98 __ —— __ —— 7.80 7. 72 __ — 7. 60 7. 73 7.,40 A Baa Aaa —— __ — 1997 __ 1997 2002 2 7, 1972 |M O O D Y ' S —— T A B L E 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 ISSUER State and Local Massachusetts Bay Transp Auth Massachusetts Bay Transp Auth California, State of Texas Wtr Dev. Bd. San Bernardino Wtr. Dist., Cal. New York State New Y o r k City Wisconsin Colorado Springs, Co. Washington Metro. Area Transit Auth Allegheny Co., Pa Manatee Co., Fla. Manattee Co., Fla. Austin, Texas Austin, Texas M o n r o e School Dist. Pittsburgh Pub Pkg Auth., Pa. Los Angeles DWAP Los Angeles DWAP South Carolina Phoenix, Ariz Phoenix, Ariz. San Diego Unified Port Dist., Cal. i Salem, Mass TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY Oct. 2 thru Oct. 27. 1972 COUPON 1 RATE OR MOODY'S 1 niTLRNET INTER- ' Ii.c RATING EST COST j Yll-LI) 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 4.76 5.74 4.47 5.06 Rev. G.O. Rev. Rev. G.O. Rev. G.O. Rev. Rev. Rev. G.O. G.O. G.O. 225.,0 36 .0 9..9 14..5 6,.0 Rev 6,.2 10,.5 11,.5 24,.8 25 .3 48,.8 10 .0 Rev Rev 12 .0 1912 1973-2002 1977-1999 2011 1974-1997 1977-1997 1973-1992 2012 2012 1978-1997 1973-1986 1977-1984 1979-1982 7.30 5.17 22 .0 14 .3 1981-1994 1973-1992 G.O. G.O. & & & — -, —— 4.90 4.96 4.93 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 Aa Aa Aaa Aaa A 7.30 3,.00-5.40 4,.00-5.90 Aaa A-l -- Aa Baa-1 Aa Aa --- Aa Aa A 4.26 4.57 4.29 3 .20-5.50 N.R. 3 .00-5.40 6.63 5.35 4 .00-5.25 2 .90-4.60 4 .10-4.70 4 .05-4.35 4.97 4.75 4 .25-5.10 3 .00-5.10 A-l . Aa 5.30 —— Aa Aa Aaa A Aa T A B L E 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury)' 1972 AMOUNT BULLION'S ISSUER TYPE 2 S t a t e and L o c a l OF DOLLARS) MATURITY COUPON ] R A T E OR N E T INTER- ! EST C O S T j OITKRL\C YD,LI) MOODY'S RATING L o s A n g e l e s Co. F l o o d C n t r l Dist., Calif. Rev. 11.0 L o s A n g e l e s Co. F l o o d C n t r l , Dist., Calif. 1972-1995 4.97 3 . 3 0 - 5 . 10 Aa Rev. 24.0 1974-2003 G.O. Rev. Rev. Rev. G.O. G.O. G.O. G.O. Rev. G.O. M t g Bd G.O. Rev. Rev. 13.5 10.0 8.1 16.9 20.0 45.0 16.9 14.5 10.0 35.0 13.5 20.0 5.0 6.6 4.97 6.60 5.15 5.37 5.56 3.30-5. 40 4 . 7 0 - 6 . 50 3 . 0 0 - 5 . 50 4 . 1 5 - 5 . 25 5.60 3 . 0 0 - 5 . 25 3.40-5. 2 0 3.00-5. 3 0 3.25-5. 70 3 . 3 0 - 5 . 65 3.00-5. 0 0 3.30-5. 80 5.80 4.00-5. 50 4 . 2 5 - 5 . 85 Aa 1975-2006 1973-2002 1977-1986 1997 1973-1997 1975-1992 1973-2022 1973-199 1974-2002 1974-1992 1973-2002 2015 1976-1902 1977-1907 Bonds Debs 150.0 300.0 1997 1978 7.41 6.45 7.37 6.45 E s t e r o M u n i I m p r o v e m e n t Dist U n i v e r s i t y of T e x a s Hawaii Hawaii P i t t s b u r g h S/D Pa. Oregon New Y o r k State San Juan, P.R. W a s h i n g t o n St. Bd C o m m , C o l l Ed C h i c a g o C i t y S/D 111 A l a s k a H o u s i n g F i n a n c e Corp M i c h i g a n State H o u s i n g D e v A u t h V e r o B e a c h , Fla V e r o B e a c h , Fla Other T.V.A. Export-Import Bank Debs 5.44 4.87 4.70 5.26 5.33 5.22 4. 78 --- nights offering. I n c l u d e s c o r p o r a t e and other security offerings of $15 million and State and local security o f f e r i n g s of $10 million and over. A A A-l Aa Aa A A A-l Baa Baa Aaa ovvi In case of State and local government securities, G.O. denotes general )bl i gat i on ; '<ev.-Ut., revenue o b l i g a t i o n s secured only by income from public utilit R e v . - Q . - U t . , revenue bonds secured only by income from q u a s i - u t i l i t i e s ; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; R e v . - K e n t . , revenue bonds secured solely hy lease p a y m e n t s . Includes foreign government and International Bank for R e c o n s t r u c t i o n Development issues and n o n - q u a r a n t e e d issues by Federal A g e n c i e s . V a r i a b l e C o u p o n 1.80 through 9/77, 5 . 0 0 thereafter. I 12 T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 As of October 27, 1972 ISSUER Talley Industries Leasco Fin Svc Carolina Pwr & Lt.. Tampa Elect Bank of Va Hershey Foods First Tenn National Corp Zapata Exploration Co *Great A m Mtg Commonwealth Edison Louisiana Pwr & Lt Fla. Pwr Southern Company Tenneco Offshore Fla Pwr & Lt Delmarva pwr & Lt Michigan Bell Tel *Appalachain Pwr South Carolina Elect & Gas Detroit Edison *Maine Yankee Pwr First Nat'l City Corp GMAC American Tel & Tel Texas Industries Englehard Minerals & Chem Co TYPE Bonds S.F. debs Cm st Pref Debs Debs Debs Conv deb Deb Pref Bonds Bonds Cm st Bonds Pref Cm st Bonds Bonds Cm st Pref Bonds Bonds Bonds Bonds Debs Conv deb AMOUNT (MILLIONS OF DOLLARS) 25.0 50.0 54.0 20.0 20.0 30.0 25.0 25.0 25.0 50.0 25.0 50.0 150.0 90.0 60.0 20.0 125.0 70.0 25.0 75.0 15.0 100.0 150.0 500.0 15.0 50.0 . APPROXIMATE DATE OF OFFERING October October November November November November November November November November November November November November November November November November November November November November November December INDEF INDEF 31 31 1 2 2 2 7 7 9 13 14 14 14 15 15 16 20 28 29 29 30 13 T A B L E 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. T r e a s u r y ) 1 ISSUER S t a t e and L o c a l TYPE Maine Winston-Salem, N.C. T a r r a n t Co, Texas J r C a l l D i s t S a n t a A n a USD, Cal." Pasadena, Cal. Flat Rock, Mich. Georgia Highway Auth Omaha Metro Util Dist D e l a w a r e Co. Indus D e v A u t h , Pa Onondaga Co., N.Y. Cuyahoga Co, Ohio C a l i f o r n i a , S t a t e of Jackson, Miss Pennsylvania Long Beach, Cal. *Collier County-Wide S/D Fla *Columbus, Ohio ^ D a l l a s ISD, T e x a s • Kent State University, Ohio Ohio Monroe Co., Mich. in table first time. 16,.5 10,.9 14,.0 10,.0 10,.0 25,.0 19,,0 20.,0 40.,0 12.,0 15.,0 90.,0 16.A 145. 0 21.,9 12.,6 26. 2 33. 7 11. 3 100. 0 57. 0 ~ A P P R O X I M A T E DATE OF O F F E R I N G October October October October October October November November November November November November November November November November November November November November 31 31 31 31 31 1 1 1 2 2 3 8 8 9 9 13 14 15 16 INDEF * Included 1 Includes c o r p o r a t e and other issues of 515 m i l l i o n and G o v e r n m e n t issues of $ 1 0 million and over. 2 Includes foreign g o v e r n m e n t and I n t e r n a t i o n a l Bank for R e c o n s t r u c t i o n and D e v e l o p m e n t issues and n o n - g u a r a n t e e d issues of Federal A g e n c i e s . for G.O. G.O. G.O. G.O. Rev. Ind dev rev Rev G.O. G.O. G.O. G.O. G.O. G.O. G.O. Rev. G.O. G.O. G.O. G.O. G.O. Rev. AMOUNT (MILLIONS OF DOLLARS) ' over; S t a t e and — local u STOCK PRICES AND VOLUME STOCK PRICES 1 NYSE INDEX 3 ' D.J. INDUSTRIALS TRADING VOLUME ' AMEX4 High Low 52.36 37.69 (1/5) (5/26) 8 4 2 . 0 0 ( 1 2 / 2 9 ) 2 7 . 0 2 (1/8) 631.16 (5/26) 19.36 (5/27) 18.5 (12/4) 7.8 (8/14) 7.1 (1/2) 1971 - H i g h Low 57.76 48.73 (4/28) (1/4) 9 5 0 . 8 2 (4/28) 26.68 (4/28) 7 9 7 . 9 7 ( 1 1 / 2 3 ) 2 2 . 7 2 (1/4) 22.1 (2/12) 11.0 (9/17) 6.7 (2/5) 2.7 (8/13) 1972 - H i g h Low 61.56 56.23 (8/11) (1/3) 971.25 (5/26) 28.53 8 8 9 . 3 0 (1/3) 25.61 21.2 (3/24) 11.2 (9/8) 7.4 (3/10) 2.6 (9/8) 1970 Sept. 61.34 60.53 59.76 59.51 15 22 29 60.60 6 60.03 13 20 27 59.10 59.77 60.60 970.05 961.24 947.32 943.03 953.27 26.67 26.46 26.15 26.06 26.18 945.36 930.46 942.81 946.42 25.95 25.80 25.72 25.89 (4/14) (1/3) 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 : 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. 4-1/2 5 16.7 11.2 3.3 *2.6 11.8 2.8 2.6 13.9 3.0 12.3 15.3 3.1 11.8 2.6 14.2 2.9 16.6 3.3 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 25 15 T A B L E 9: Security Credit END OF P E R I O D CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 1 BANKS 2 | TOTAL NET CREDIT 1 CUSTOMERS' ; i C U S T O M E R S ' N E T E X T E N D E D BY NET DEBIT FREE CREDIT BROKERS AND BALANCES DEALERS 3 BALANCES ^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 (4) (4) (4) (4) (4) (4) 5,700 6,180 6,620 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) 2,488 2,542 2,512 2,459 2,330 2,231 2,245 (4) (4) (4) (4) (4) (4) (4) 30 10 100 70 80 7,010 7,200 7,510 7,660 (4) (4) (4) (4) Change in Outstanding: 1972 - July Aug. Sept. Oct. Nov. Dec. 70 60 80 20 -40 490 -20 -10 40 -50 530 1972 - Jan. Feb. Mar. Apr. May 300 480 440 390 190 50 20 10 10 30 350 500 450 400 220 June 310 150 90 50 400 200 July 1 2 3 — -— -— --—— — — — — 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 margin debt until M a r c h 1968 included loans secured by U . S . g o v e r n m e n t s , the amount of such loans included is thought to h a v e been small.. "Bank loans to o t h e r s than brokers and dealers for p u r c h a s i n g or carrying securities o t h e r than U . S . g o v e r n m e n t s . " T h e d i f f e r e n c e b e t w e e n customers' 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 r e p r e s e n t s the net credit extended by brokers and d e a l e r s to the n o n f i n a n c i a l p u b l i c . NOT?-:: W i t h the e x c e p t i o n of bank loan data, figures are supplied by the New York Stock E x c h a n g e and are end of m o n t h data. B a n k loans are for weekly reporting large c o m m e r c i a l b a n k s . B r o k e r data i n c l u d e s loans for regulated securities; bank data i n c l u d e s 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, whether r e g u l a t e d or n o t . 4 Series discontinued T A B L E 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS REGULAR DEPOSITS 3 NET ANNUAL NEW NET GROWTH FLOW RATE 1 2,549 4,517 9,623 1971 - July August September 1972 - July August _p/ September e/ 4.0 6.8 13.5 415 300 793 581 416 950 -763 936 5,678 SAVINGS & LOAN ASSOCIATIONS SHARE CAPITAL NET ANNUAL NEW NET GROWTH FLOW RATE 1 NET FLOW Not Seasonally Adjusted 4,068 3.1 -1,003 10,965 8.1 5,285 28,244 19.4 20,652 6,617 15,482 37,867 TOTAL ANNUAL GROWTH RATE 1 3.4 7.7 17.5 1 2 3 ,089 974 576 937 798 663 842 15.8 14.0 8.2 13.2 11.1 1,551 1,538 2,670 1,091 3,463 1,196 413 310 2,290 1,801 100 2,159 1,709 2,572 2,019 3,000 1,150 2,871 2,217 3,950 1,463 1,052 1,966 1,409 1,739 1,247 1,250 3,091 2,704 1,814 2,849 3,432 2,232 2,447 20.5 17.6 11.7 18.2 4,180 3,678 2,390 3,736 4,249 2,904 3,289 i9.0 16.5 10.6 16. 6 18.4 12.4 13.9 21.5 13,7 14.9 Annual growth rate for monthly data is the annualized monthly percentage i nc.rease Net New Money is new deposits net of both withdrawals and interest. iuit; for SM-s insured associations only, which represent 967. of industry total resourc. Regular deposits at mutual savings banks exclude items such as Christmas escrow accounts, which represent a very small part of total deposits. SOURCE: National Association of Mutual Savings Hanks and Fv.dw.il Horn. I., in Hank Hoard. 9.2 11.5 -1,766 6,231 26,330 276 195 105 Seasonally Adjusted - March April May June July August j>/ September ej NET NEW MONEY ' T A B L E 11: Mortgage Commitments at Selected Thrift Institutions DATE TOTAL OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS • SAVINGS & LOAN BANKS (N.Y. STATE) ASSOCIATIONS 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars, Seasonally Adjusted) 1971 - June July Aug. Sept. Oct. Nov. Dec. 15.9 16.2 16.3 16.4 16.3 1972 - Jan. Feb. Mar. Apr. May June July 17.0 18.3 19.5 20.5 21.7 21.7 22.0 16.6 16.6 12.8 13.1 13.2 13.2 13.1 -13.2 13.1 3.1 3.1 3. 1 3.2 3.3 3.4 3.6 1.31 .30 . 12 13.3 14.2 15.2 3.7 4.1 4.3 4.5 4.6 4.5 . 4.5 . 30 1.34 1. 19 .99 16.0 17. 1 17.2 17.5 .08 .02 .20 .09 1.22 .56 .40 1.26 .29 . 14 -.07 -.05 .08 -.06 . 12 .97 .97 . 79 1.13 .48 .34 Based on data from Federal Home Loan Bank Board and Savings Banks Associations of New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. Net changes are derived directly from unrounded outstandings levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. .05 .01 .01 . 14 .07 . 12 . 15 . 18 .37 .22 .20 .09 .08 .06 I IE T A B L E 12: Net Change in Mortgage Holdings 1 TOTAL INCLUDING FNMA-GNMA . FINANCIAL INSTITUTIONS 1 LIFE MUTUAL JSAVINGS &| TOTAL | COMMERCIAL SAVINGS J INSURANCE LOAN BANKS BANKS , COMPANIES I ASSOC! 1 23,781 24,074 21,736 41,647 21,273 19,699 16,827 39,259 6,677 5,404 2,462 9,940 1972 - May June July Aug. Sept. 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 1971 - Aug. Sept. Oct. Nov. Dec. 4,295 4,021 3,747 3,745 4,323 3,783 3,555 3,357 3,443 4,081 1,001 999 974 843 824 400 306 329 465 522 2,252 2,122 1,977 2,058 2,357 130 128 77 77 378 512 466 390 302 242 1972 - Jan. Feb. Mar. Apr. May June July Aug. Sept. 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 1,202 272 296 486 390 455 533 365 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. DATE F ' F::MA-GNMA 1 Not Seasonally Adlusted 1968 1969 1970 1971 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 , 24 54 79 n.a. n.a. ! J ! 2,508 4,375 4,909 2,388 284 50 155 368 n.a. Seasonally Ad lusted 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 87 per cent of the net increase estimated for all holders in 1971. T A B L E 13: Net Increases in Mortgage Debt Outstanding B i l l i o n s of dollars, SAAR TOTAL RESIDENTIAL3 1- to 4 FAMILY 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 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 - 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 - I II III IV 20.6 22. 9 29. 1 31.3 14.2 16.9 21.8 22.5 • I II III IV 37.1 47.8 53.6 53.4 Ie lie 56.7 57.7 QUARTER MULTIFAMILY MULTI-AND COMMERCIAL FARM 3.9 5.0 4.9 4. 7 7.2 8.4 8.8 8.5 1.8 1.8 2.5 2.8 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 1 8 1.9 6.1 5.4 5./, 10.5 10.1 10.0 2.2 13.0 4.4 4.7 4. 7 5.3 5.2 10.5 2.2 1. 7 1.4 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 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 41.5 42.8 32.2 33.4 9.3 9.4 13.0 12.8 22.2 22.3 2.2 2.1 COMMERCIAL oniy and is sum ° f * - T A B L E 14: FNMA Weekly " A u c t i o n " Results WEEK ENDED May 30 June 12 26 COMMITMENTS IN $ MILLIONS ACCEPTED l-YEARll 906TOTAL TOTAL M0NTH & OVER DAY OFFERED 133.4 83.5 97.8 . 90DAY 6MONTH 1-YEAR & OVER 76.4 76.4 - -- 7.62 -- -- 48.1 76.6 48.1 76.6 -- -- 7.62 7.62 -- -- -- 7.62 7.62 -- -- -- 7.63 7.62 -- -- 7.63 7.65 -- July 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. 2 352.8 211.5 211.5 16 271.2 224.9 224.9 7 21 IMPLICIT YIELD^(per cent) -- 1 7.69 -- 7.72 -- Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments. Average secondary market yields after allowance for commitment fee and required purchase and holding of FNMA stock, assuming prepayment of 15 years for 30-year Government-underwritten mortgages. Yields shown are gross, before deduction of 38 basis points fee paid by investors to servicers. 21 TABLE 15: Private Housing Starts and Permits SEASONALLY ADJUSTED ANNUAL RATE TOTAL|1-FAMILY 2 OR MORE 1971 - September October November December 2,029 2,038 2,228 2,457 1,172 1,155 1,242 1,347 857 882 985 1,110 TOTAL 173.8 179.7 176.4 152.1 UNADJUSTED TYPE OF FINANCING FHA VA I OTHER 48.3 38.5 47.2 85.4 8.7 8.1 9.1 7.4 116.8 133.1 120.1 59.3 BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 1,944 1,983 2,051 2,142 2,204 106.0 7.5 37.4 150.9 1,071 2,056 117.8 8.0 27.8 153.6 1,357 2,007 155.7 10.5 37.7 205.8 1,067 2,369 991 172.9 8.5 29.1 213.2 942 2,109 955 186.1 32.4 9.4 227.9 1,006 2,350 121 184.8 9.6 31.9 226.3 1,034 2,330 108 169.4 26.2 9.4 205.0 July r/ 929 1,289 2,218 237 188.1 9.8 30.3 228.2 August r/ 2.453 1,396 1,057 252 974 1,378 September p/ 2,352 Total starts are Census estimates including farm for both permit-issuing and not.-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 guarantee the mortgages-. As reported by FHA and VA, a unit is started when a field office receives the first compliance inspection report, which is made before footings are poured in some cases but normally after the foundations have been completed. Other starts are derived as a residual, although total and FHA and VA starts are not strictly comparable in concept or timing; other starts in^clude both units financed by conventional mortgages and units without mortgages. Building permits are Census estimates based on 13,000, or all known permitissuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of days per month, as well as other differences in timing and coverage. 1972 - January February March April May 2,487 2,682 1,415 1,325 1,302 1,167 1,344 1,296 T A B L E 16: Mortgage and Bond Yields CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON CONV. & FHA MORTGAGES 5 NEW ISSUE Aaa UTILITY 4 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 6 8.60 8.30 -.10 -.74 9.43 7.72 .37 .70 7.95 7.55 .28 -.19 8.26 7.02 .52 -.36 7.59 7.75 7.70 .13 .11 7.38 7.28 .24 .31 7.49 7.46 7.45 7.50 7.53 7.54 7.54 7.55 7.56 7.60 7.60 7.55 7.60 7.60 7.60 7.65 7.65 7.70 .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 MORTGAGES 30-year 7.62 1 2 3 4 5 6 1 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 opinions about average bid prices in the private secondary market for new-home mortgages, for immediate delivery. Separate data available for 25-year and--beginning July 1961--30-year mortgages with minimum downpayments, weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year mortgages. Based on FHA-field-office opinion on typical contract interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring offices. See note for Table 1. . Yield spread equals conventional mortgage rate less FHA secondary market yield. Yield spread equals FHA secondary market yield less new Aaa corporate bond yield. TABLE 17. Conventional Mortgage Terms DATE _NEW HOMES CONFEES & ] LOAN/ LOAN PRICE T R A C T CHARGES EFFEC- MATURITY 1 RATIO AMT. RATE (PER (YEARS) TIVE j (PER ($000) (PER C E N T ) RATE 3 CENT) CENT) 2 1 EXISTING HOMES C O N - ™ FEES & ] I LOAN / CHARGES! EFFEC- 1 MATU- PRICE TRACT (PER I TIVE | RITY RATIO RATE CENT) RATE 1 (YEARS) (PER (PER CENT) CENT) 3 2 i LOAN AMT. ($000) i 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 7,.62 7,.45 7,.38 7,.38 7,.40 7..41 7. 43 7. 45 7. 42 0.95 1.02 0.84 0.83 , 0.84 0.85 7,.78 7,.61 7,.52 7 .51 , 7.,53 7..55 7. 56 7. 59 7. 56 26 .3 26 .2 25 .8 26 .4 - 2 6 .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 74 .5 74 .2 74 .5 74 .2 74 .6 74,.6 23.2 23.5 22.5 22.9 23.2 23.9 : 75,.0 76,.5 76..2 76.,0 76.,2 76.,5 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 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 74,.7 75..8 75..6 75.,3 75.,4 76. 1 24.1 24.8 24.4 24.9 24.6 25.2 , 77. 0 27,.6 27..8 28..2 28..5 28. 5 27..8 28. 2 77. 5 77. 6 27. 9 27. 7 7.39 7.40 25.6 26.3 26.1 76. 2 76. 5 76. 6 25.2 25.4 24.7 1972 Jan. Feb. Mar. Apr . May June July Aug. p / Sept. 1 0.83 0.86 0.86 26 5 • # 27 . < f 27 .2 27 , .2 27,.2 27,.2 27.,2 27.,5 27. 3 0.83 0.81 0.82 7.,52 7. 53 Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurant 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, b^sed 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.
@FedFRASER