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Capital Market Developments September 15,1975 Prepared by t h e CAPITAL MARKETS SECTION in conjunction with the MORTGAGE, AGRICULTURAL, and CONSUMER FINANCE SECTION DIVISION O F RESEARCH AND STATISTICS BOARD O F GOVERNORS F E D E R A L RESERVE SYSTEM Washington, D C. 20551 V Index TABLES SYMBOLS 1 - 6 SECURITY VOLUME AND YIELDS 7, 8 STOCK MARKET AND SECURITY CREDIT 9 — 16 MORTGAGE MARKET e ESTIMATE P PRELIMINARY r REVISED n.3. NOT AVAILABLE — DATA DO NOT EXIST Table 1 3 YIELDS, VOLUME AND RECEPTION. CORPORATE BOND MARKET WEEK ENDING 1975 - J u l y RECENTLY 2 OFFERED Aaa UTILITY GROSS 3 OFFERINGS ($ MILLIONS) PER CENT SOLD BY END OF WEEK NEW ISSUES 4 IN SYNDICATE ($ MILLIONS) 4 11 18 25 9.62 9.38 9.53 9.25 9.30 9.45 9.57 9.33 220 750 875 520 95 97 98 91 58 36 74 72 15 22 29 9.37 9.44 • 9.43 9.53 9.49 9.35 9.51 9.49 9.54 9.50 243 360 244 342 350 80 80 90 95 90 63 96 33 4 0 5 12 9.63p 9.41r 9.52p 15 285 99 95 1 33 Aug. Sept. NEW ISSUE 1 Aaa UTILITY MUNICIPAL B O N D MARKET YIELDS W E E K ENDING MOODY'S NEW ISSUE VOLUME BOND BUYER 20-80ND INDEX GROSS 3 OFFERINGS ($ MILLIONS) PER CENT SOLD BY END OF WEEK NEW ISSUES 4 IN SYNDICATE ($ MILLIONS) 1975 - J u l y 4 11 18 25 6.30 6.33 6.40 6.50 6.96 6.98 7.09 7.22 1,705 357 604 669 97 79 88 84 108 151 111 170 Aug. 1 8 15 22 29 6.40 6.40 6.40 6.40 6.40 7.09 7.16 7.17 7.18 7.18 524 664 442 685 450 90 83 69 85 94 138 146 215 207 155 Sept. 5 12 6.60 6.60?:',: 7.34 7.40 254 286 69 90 183 84 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. 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. 20-YEAR C O N S T A N T MATURITY 4 BOND BUYER 2 0 - 8 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 (8/21) 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) 7.49 (4/21) 7.15 (12/1) 7.36 (4/28) 7.05 (2/12) 6.19 (4/14) 5.74 (11/17) 6.54 ( 4 / 1 3 ) 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 . 9 9 (10/11) 1974 - High Low 10.61 (10/4) 8.05 (2/15) 1 0 . 5 2 (10/11) 8.13 (1/4) 9 . 3 9 (10/11) 7.73 (1/4) 8.68 (8/30) 7.39 (1/4) 7.15 ( 1 2 / 1 2 ) 5.16 (2/7) 1975 - High Low 9.80 (5/2) 8.89 (2/7) 9.71 (5/25) 9.06 (2/28) 9.01 (5/2) 8.57 ( 2 / 2 8 ) 8 . 5 7 (9/1%) 7.63 (2/21) 7.40 ( 9 / 1 1 ) 6.27 (2/13) 9.37 9.44 9.43 9.53 9.49- 9.35 9.51 9.49 9.54 9.50 8.86 8.93 8.95 8.96 8.96 9.63p 9.41 9.52p 8.93 8.93p 1975 - Aug. 1 8 15 22 29 Sept. 5 12 8.27 8.49 r-8.50 8.53 8.48 8.47r 8.57p 7.09 7.16 7.17 7.18 7.18 7.34 7.40 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. B 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. 5 Table 3 LONG-TERM CORPORATE AND STATE AND LOCAL GOVERNMENT SECURITY OFFERINGS AND PLACEMENTS IN MILLIONS O F DOLLARS G R O S S PROCEEDS March April May June 1973 1975 5,379 4,526 5,368 3,328 2,687 3,217 2,327 1,962 3,933 2,361 2,322 2,124 2,255 2,003 2,025 1,977 1,515 2,467 4,407 3,060 3,164 2,981 2,497 2,543 3,578 2,384 2,858 3,020 2,397 2,304 2,166 1,826 1,939 2,152 3,257 2,666 1,617 2,631 1,806 1,915 3,497 1,459 1,106 1,701 2,028 1,657 1,750 4,609 3,746 3,505 3,398 3,563 3,238 2,860 2,483 1,479 2,313 2,257 2,089 9,232 9,205 7,540 11,860 8,222 8,618 6,352 10,199 6,283 6,867 4,266 6,822 5,959 5,917 5,435 6,659 18,437 25,977 37,837 16,840 23,192 33,391 13,150 17,416 24,238 11,876 17,311 23,970 July August September October November December Q1 02 03 2 STATE AND LOCAL 1974 1975 January February 1 CORPORATE PERIOD 15,274 04 1st Half 3 Otrs. Year 1 " NOTES: 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts. 6,807 8,262 1 1974 1 1973 Table 4 NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER IN MILLIONS OF DOLLARS G R O S S PROCEEDS BY TYPE OF ISSUE PERIOD TOTAL GROSS PROCEEDS BY TYPE OF ISSUER BONDS COMMON MEMO AND MANUFACISSUES INCLUDED PUBLICLY PRIVATELY PREFERRED TURING OFFERED PLACED FOREIGN (CONVERTIBLE STOCK 1974 - I I III IV 9,205 7,540 11,860 5,883 5,025 8,611 1,789 1,222 1,565 1,533 1,293 1,684 115 373 374 1975 - I 15,274 10,829 2,336 2,109 1,255 1 3,060 3,164 2,981 1,594 2,350 1,939 666 607 516 800 207 526 63 42 10 12 15 12 July Aug. Sept. 3,257 2,668 1,617 2,086 2,042 897 616 299 307 555 325 413 223 150 Oct. Nov. Dec. 4,609 3,746 3,505 3,423 3,016 2,172 355 330 880 831 400 453 175 199 1975 - J a n . Feb. Mar. 5,379 4,526 5,368 3,657 3,201 3,971 1,133 703 500 589 622 897 470 610 175 Apr. 4,407 2,771 360 1,276 135 1974 - Apr. May June Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. 1 Source: Securities and Exchange Commission. COMMUNICATIONS OTHER ISSUERS 2,541 1,887 4,079 3,189 2,376 3,702 1,307 1,008 743 2,164 2,272 3,339 6,055 , 4,736 1,380 3,104 1,203 862 477 1,130 912 1,147 288 663 356 442 730 992 205 104 1 1,094 605 188 618 1,078 680 295 364 349 1,251 620 401 76 728 1,699 1,652 2,109 964 629 475 93 175 1,297 993 1,049 1 — 1,901 1,675 2,479 1,272 1,957 1,507 938 125 317 1,267 771 1,066 130 1,706 1,408 561 732 — NOTES: 39 310 76 PUBLIC UTILITY 1 T a b l e 5A INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY September 2, t h r u September 1 2 , 1975 ISSUER AMOUNT (MILLIONS OF DOLLARS) TYPE MATURITY COUPON RATE OFFERING YIELD MOODY'S RATING CORPORATE New England Power P a c i f i c Power & L i g h t A t c h i s o n , Topeka & Santa Fe Railway United Telecommunication Co. Gene. T e l e . Co. of Kentucky Toledo Edison Raychem Corp. Union P a c i f i c R a i l r o a d Co. Union P a c i f i c R a i l r o a d Co. Union P a c i f i c R a i l r o a d Co. Union P a c i f i c R a i l r o a d Co. Union P a c i f i c R a i l r o a d Co. Union P a c i f i c R a i l r o a d Co. L o u i s i a n a Power & L i g h t I n d i a n a p o l i s Power & L i g h t Whirlpool Corp. C o n n e c t i c u t L i g h t & Power C o n n e c t i c u t L i g h t & Power Pfd s t k Com s t k Equip t r Com s t k Pfd s t k Com s t k Corns t k Equip t r Equip t r Equip t r Equip t r Equip t r Equip t r 1 s t mtge 1 s t mtge SF debt Pfd s t k 1 s t mtge 25.,3 55..9 15.,0 32. 5 15. 0 31.,3 28.,3 40..0 4..0 4,,0 4..0 4,.0 4,.0 50..0 60,.0 50,.0 20,.0 50 .0 Other Nova S c o t i a Power Corp. Debt 50 .0 w — — 1990 8.,75 —— — —— — 10. 48 11.,04 — 7.00-9.00 — 10.,48 — — — — A —— Aaa — A —— 2000 9.,00 8..15 8,.40 8,.55 8 .65 8,.75 9 .38 9 .88 9 .63 11 .04 11 .00 9..00 8,.15 8,.40 8,.55 8,.65 8,.75 9 .20 : 9 .88 9 .70 11 : 0 4 " V : : 10 .88 Aaa Aaa Aaa Aaa Aaa Aaa A Aa/AAA A A v 2000 » .30 10 ;50 A 1990 1977 1978 1979 1980 1981 1983 2005 2000 — NOTES: • Rights offering. 1 Includes only corporate and other security offerings of $15 million and over; excludes options, exchanges, and secondary offerings. 11. 04 ^ UViU V'/V-: T a b l e SB INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY ' September 2, t h r u September 12, 1975 TYPE ISSUER 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY NET INTEREST COST OFFERING YIELD MOODY'S RATING STATE AND LOCAL L o u i s i a n a , S t a t e of C o n n e c t i c u t , S t a t e of Aurora, Colo. J a y , Maine J a y , Maine J a y , Maine Coweta Co. Dev. A u t h . , Ga. Beaver Co. I n d u s t . Dev. A u t h . , Beaver Co. I n d u s t . Dev. A u t h . , Beaver Co. I n d u s t . Dev. A u t h . , Beaver Co. I n d u s t . Dev. A u t h . , Ector Co., Texas Oklahoma C i t y , Okla. J e f f e r s o n C o . , Ky. M i s s i s s i p p i , S t a t e of M i s s i s s i p p i , S t a t e of M i n n e a p o l i s , Minn. M i n n e a p o l i s , Minn. Pa. Pa. Pa. Pa. G.O. G.O. G.O. Rev Rev Rev Rev Rev Rev Rev Rev G.O. G.O. Rev G.O. G.O. G.O. G.O. 75.0 100.0 12.0 2.5 2.5 7.0 10.0 2.0 4.3 4.0 4.0 15.4 25.9 35.0 50.0 10.0 9.4 4.0 1976-2000 1976-1995 1975-2003 1985 1990 2000 2005 1985 1987 2005 2010 1976-1991 1978-1995 2000 1980-1995 1981-1995 1976-1985 1976-1995 6.47 6.16 7.71 7.63 7.63 7.63 9.10 —— \ —— 5.72 5.86 7.35 6.37 6.31 5.23 5.98 4.20-7.00 4.26-6.75 4.50-7.70 6.50 7.00 7.80 9.00 6.75 7.00 8.38 8.44 4.00-6.10 4.50-6.25 7.25 5.00-7.00 5.15-7.10 4.10-5.60 4.10-6.70 NOTES: 1 2 Include* only state end local wcurity offerings of $10rnWIonand o i local government wouritiw, Q.O *wwtee pnerel obUpllen; I i; Rev.-S.T., revenue bowk teemed by n In cm# qf Stete cured ontv W b • m m < en*y by biBBiwi from pubHe utWtiee; Rev.-Q.-Ut, m m • boedneewed eoWy by lea* p#ymem*. » by F Aa Aaa A-l — — • — Baa A A A A Aa Aa Aaa Aa Aa Aaa Aaa 9 T a b l e 6A FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 1 a s of September 12, 1975 ISSUER TYPE AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING CORPORATE Reading & Bates O f f s h o r e D r i l l i n g Co Southern Ry Co. Tucson Gas & E l e c t r i c Archer D a n i e l s Midland Co. *Tampa E l e c t r i c Co. Kellogg Co. Philadelphia Electric Mountain S t a t e s T&T Co. Mountain S t a t e s T&T Co. Washington N a t u r a l Gas Co. F l o r i d a Power I n d i a n a & Michigan E l e c t r i c Long I s l a n d L i g h t i n g Co. I n d i a n a & Michigan E l e c t r i c Co. I l l i n o i s Power Kentucky U t i l i t i e s Massachusetts E l e c t r i c Co. El Paso Co. Shenandoah O i l Corp. Alabama Power Co. *Wiaconsin Power & L i g h t *Northern I n d i a n a P u b l i c S e r v i c e Houston L i g h t i n g & Power Houston L i g h t i n g & Power Potomac Edison Co. C i n c i n n a t i Bell Inc. M e t r o p o l i t a n Edison Co. *North C a r o l i n a Power & Light Michigan Wisconsin P i p e l i n e H a r t f o r d E l e c . Light & Power Co. Bankers T r u s t N.Y. Corp. Alza Corp. South C a r o l i n a E l e c t r i c & Gas Jerrico Inc. * H o s p i t a l Corp. of America F i r s t Maryland Bancorp Macy C r e d i t Corp. Mead Corp. Armco S t e e l Corp. Com s t k Equip t r Pfd s t k Com s t k Com s t k Notes Com s t k ( r t s ) Notes Debt 1 s t mtge Com s t k Pfd s t k 1 s t mtge 1 s t mtge Com s t k Pfd s t k 1 s t mtge Govt backed Conv debt 1 s t mtge Com s t k Com s t k Pfd s t k Com s t k 1 s t mtge Debt 1 s t mtge Com s t k Pfd s t k 1 s t mtge Pfd s t k Com s t k ( r t s ) Pfd s t k Com s t k 1 s t mtge Notes Debt SF debt Notes 24.6 15.0 25.0 63.0 22.7 75.0 80.0 75.0 125.0 20.0 30.0 30.0 90.0 60.0 40.0 20.0 40.0 65.0 20.0 35.0 " 25.0 30.0 40.0 40.0 30.0 40.0 45.0 60.0 50.0 30.0 75.0 20.0 15.0 31.1 41.0 25.0 50.0 100.0 21.0 NOTES: * Included in table for first time. 1 Includes only corporate and other security issues of $15 million and over; excludes exchanges, options September September September September September September September September September September September September September September September September September September September September September September September September September September September September September September September September September September September September September September September 15 16 16 16 16 17 17 17 17 17 18 18 18 18 23 23 23 23 23 23 23 23 24 24 24 24 25 28 30 30 T a b l e 5A INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY ' September 2 , t h r u September 1 2 , 1975 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY C O U P O N RA T E OFFERING YIELD MOODY'S RATING CORPORATE New England Power P a c i f i c Power & L i g h t A t c h i s o n , Topeka & Santa Fe Railway United Telecommunication Co. Gene. T e l e . Co. of Kentucky Toledo Edison Raychem Corp. i Union P a c i f i c R a i l r o a d Co. Union P a c i f i c R a i l r o a d Co. Union P a c i f i c R a i l r o a d Co. Union P a c i f i c R a i l r o a d Co. Union P a c i f i c R a i l r o a d Co. Union P a c i f i c R a i l r o a d Co. L o u i s i a n a Power & L i g h t I n d i a n a p o l i s Power & L i g h t Whirlpool Corp. C o n n e c t i c u t L i g h t & Power C o n n e c t i c u t L i g h t & Power Other Nova S c o t i a Power Corp. Pfd s t k Com s t k Equip t r Com s t k Pfd s t k Com s t k Cornstk Equip t r Equip t r Equip t r Equip t r Equip t r Equip t r 1 s t mtge 1 s t mtge SF debt Pfd s t k 1 s t mtge 25.3 55.9 15.0 32.5 15.0 31.3 28.3 40.0 4.0 4.0 4.0 4.0 4.0 50.0 60.0 50.0 20.0 50.0 — 1990 8.75 11.04 A — —— 7.00-9.00 Aaa — — 10.48 10.48 A —— — — — — — — / " 2000 9.00 8.15 8.40 8.55 8.65 8.75 9.38 9.88 9.63 11.04 11.00 9.00 8.15 8.40 8.55 8.65 8.75 9.20 9.88 9.70 11.04 10.88 2000 10.50 10.50 1990 1977 1978 1979 1980 1981 1983 2005 2000 Rights offering. Includes only corporate and other security offerings of $15 million and over; ex eludes "options, exchanges, and secondary offerings. —— —• — NOTES: • 1 11.04 —— — Aaa Aaa Aaa Aaa Aaa Aaa A Aa/AAA A A Table 6B FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 11 1 as of September 12, 1975 TYPE ISSUER AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING STATE & LOCAL Albuquerque, N.M. Newark, N . J . C h e s t e r f i e l d C o . , Va. J e f f e r s o n P a r . Hosp. D i s t . , La. Ramsey Co., Minn. *Washington P u b l i c Power Supply System Jersey City, N.J. Orlando U t i l i t i e s Comm., F l a . * S a l t River A g r i c . Improv. & Power D i s t . , Ariz. * F l o r i d a , S t a t e of *Los Angeles Co. C i v i c Center A u t h . , Calif. C a l i f o r n i a , S t a t e of *San Diego Pub. Sch. Bldg. C o r p . , Calif. *Tallahassee, Fla. I l l i n o i s Health Fac. Auth. *E1 Paso Co. J r . College D i s t . , Texas Postponement P o r t of S e a t t l e , Wash. Massachusetts Hsg. Finance Agy. Ohio, S t a t e of G.O. G.O. G.O. Rev G.O. 10.0 15.9 19.4 18.0 11.4 September September September September September 15 16 16 16 17 Rev G.O. Rev 175.0 15.8 20.0 September September September 18 18 23 Rev G.O. 35.0 25.0 September September 24 24 Rev G.O. 46.0 50.0 September September 25 30 Rev Rev Rev 35.0 30.0 22.5 September October October 30 1 1 G.O. 19.7 October 21 G.O. Rev Rev 16.0 78.7 32.5 September September September 9 10 11 NOTES: 1 Include* state and local government issues of $10 million and over, foreign government. International Bank for Reconstruction issues of Federally sponsored agencies; excludes secondary offerings. • Included in the table for the first time. Table 7 STOCK PRICES AND VOLUME TRADING VOLUME STOCK PRICES NASDAQ QJ INDUSTRIALS 5 . 5 (1/12) 1 . 4 (8/20) 11.3 (1/11) 3.5 (8/27) 24.9 (1/3) 7 . 5 (7/5) 4 . 4 (1/3) .9 (9/26) 7.5 ( 1 . 3 ) 2.8 (7/5) 88.00 (7/15) 60.70 (1/2) 35.2 (2/13) 10.6 (8/15) 4 . 2 (2/21) 1 . 2 (8/29) 8 . 1 (2/13) 3.6 (1/20) 90.69 89.43 91.08 92.94 84.77 83.43 85.24 86.50 24.7 19.0 19.9 22.5 3.4 2.4 2.1 3.1 7.2 6.2 6.0 6.3 871.79 871.09 862.41 834.09 92.60 95.27 95.67 91.14 86.20 87.20 87.02 83.60 19.3 22.5 22.8 18.6 2.6 3.4 3.3 2.4 6.0 6.2 6.5 5.8 47.10 45.92 46.02 44.85 46.29 826.50 817.74 825.64 804.76 835.34 89.23 85.86 83.58 86.64 81.92 79.55 78.58 76.45 79.01 15.6 13.7 12.4 14.8 12.7 1.8 1.6 1.4 1.6 1.3 4.9 4.6 4.4 4.7 4.6 45.56 83.48 835.97 809.29 85.45 44.26 77.78 74.72 12.lr 13.3 1.3 1.3 4.3 4.3 136.84 (1/11) 26.0 (9/20) 89.12 (12/13) 9.0 (8/20) 65.48 (1/11) 49.12 (12/13) 1051.50 (1/11) 788.31 (12/5) 130.47 (1/11) 85.26 (12/20) 53.37 (3/13) 32.89 (10/3) 891.66 (3/13) 577.60 (12/6) 102.01 (3/14) 58.29 (12/9) 96.53 (3/15) 54.87 (10/3) 51.24 (7/15) 37.16 (1/8) 881.81 (7/15) 632.04 (1/2) 96.86 (7/15) 62.20 ( 1 / 2 ) 49.19 48.20 49.39 50.66 839.64 816.96 855.44 873.12 50.45 50.71 50.07 47.87 86.16 NOTES: 1 Figure other than hl^hi end lows are Friday* only. Highs and lows are for the year and are not necessarily for Fridays. 2 Volume figures are weekly averages of daily figures (millions of shares). 3 4 12/31/66 - 60 Baaed on average price change until September 4,1973 thereafter, based on market value of shares listed. 13 Table 8 SECURITY CREDIT REGULATED MARGIN CREDIT EXTENDED BY END O F PERIOD BROKERS ON 1 BROKERS ON 2 CONVERTIBLE MARGIN BONDS STOCK BANKS 3 UNREGULATED NONMARGIN STOCK CREDIT AT BANKS OUTSTANDING 158 156 148 145 139 137 1,023 953 924 916 891 856 2,091 2,119 2,060 2,024 2,053 2,064 134 136 134 138 140 146 144 848 830 844 824 819 1,919 1,897 1,882 1,885 1,883 -320 -250 -500 -90 40 -130 -14 -3 -7 -3 -6 -2 -14 -70 -29 -8 -25 -35 19 28 -59 -36 29 11 120 170 60 180 340 230 310 -3 2 -2 4 2 6 -2 -8 -18 14 -20 -5 -145 -22 -15 -3 -2 1974 - J u l y Aug. Sept. Oct. Nov. Dec. 4 ,840 4,590 4,090 4,000 4,040 3,910 1975 - J a n . Feb. Mar. Apr. May June July 4,030 4,200 4,260 4,440 4,780 5,010 5,320 ' CHANGE IN OUTSTANDING 1974 - J u l y Aug. Sept. Oct. Nov. Dec. 1975 - J a n . Feb. Mar. Apr. May July 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 4 Table 9 SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN MILLIONS OF DOLLARS SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS REGULAR DEPOSITS ANNUAL 3 GROWTH RATE NET FLOW 1971 1972 1973 1974 9,621 10,067 4,815 2,909 1974 - May July 1975 - May July £/ 1975 - J a n u a r y February March April May June J u l y 2.1 1 13.5 12.4 5.3 3.0 6 769 -521 — 1,143 1,827 505 —— 369 715 1,489 867 1,352 1,486 953 4.5 8.7 18.0 10.3 15.9 17.3 10.9 : NET NEW MONEY 2 SHARE CAPITAL NET FLOW 5,378 5,451 -442 -2,822 27,793 32,567 20,237 16,053 -182 -370 -733 536 2,691 -481 930 716 270 —— — — —— —— ANNUAL 3 GROWTH RATE 19.0 18.7 9.8 7.0 NET NEW MONEY 2 TOTAL DEPOSITS NET FLOW 20,653 23,884 10,507 4,669 137,414 Y»2,634 25,052 18,952 420 16 -581 • 542 3,460 -1,002 3,895 3,690 — 6,226 3,089 3,062 2,867 SEASONALLY ADJUSTED —— 2,455 12.1 3,057 14.9 4,842 23.3 —— 3,642 17.2 —— 4,331 20.2 — 5,031 23.0 4,151 18.6 5,038 8,053 3,567 —— 2,824 3,772 6,331 4,509 5,683 6,517 5,104 9.9 13.1 21.7 15.2 19.0 21.4 16.5 — — — 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 3 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. Annual growth rate for monthly data is the annualized monthly percentags increase in deposits. Souroe: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. ANNUAL 3 GROWTH RATE NET NEW MONEY 17.2 16.7 8.4 5.8 26,331 29,335 10,062 1,847 — 238 -354 -1,314 — —— 4,620 3,805 3,137 —— — —— — —— 2 15 T a b l e 10 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS OF DOLLARS, SEASONALLY ADJUSTED NET CHANGE OUTSTANDING COMMITMENTS PERIOD TOTAL ALL SAVINGS MUTUAL & LOAN SAVINGS BKS) ASSOCIATIONS (N Y. STATE) 1971 - Dec. 17.7 14.0 3.7 1972 - Dec. 25.1 20 . 2 TOTAL ALL SAVINGS MUTUAL & LOAN SAVINGS BKS ASSOCIATIONS (N.Y. STATE) .49 .30 .19 4.9 .56 .55 .01 .80 .21 -.43 -.57 -.89 -.21 -.67 -.92 -1.15 -1.06 -.41 .15 .66 .11 - .28 -.40 -.77 -.15 -.56 -.75 -1.00 -.90 -.26 .35 .14 -.10 -.15 -.17 -.12 - .06 -.11 -.17 -.15 -.16 -.15 -.20 1973 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 25.8 25.8 25.4 24.8 24.0 23.7 23.1 22.2 21.0 20.0 19.6 19.7 20.8 20.9 20.6 20.2 19.5 19.3 18.8 18.0 17.0 16.1 15.9 16.2 5.0 4.9 4.8 4.6 4.5 4.4 4.3 4.2 4.0 3.9 3.7 3.5 1974 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 19.3 19.4 19.5 19.7 18.5 18.0 17.3 16.7 16.2 14.9 14.4 14.4 15.9 16.0 16.3 16,7 15.7 15.1 14.6 13.9 13.5 12.5 12.0 12.3 3.4 3.2 3.1 3.0 2.9 2.9 2.8 2.8 2.7 2.4 2.3 2.2 -.33 -.06 .20 .20 -1.08 -.61 -.64 -.56 -.56 -1.31 -.54 -.03 -.33 .13 .34 .30 -1.07 - .54 -.55 -.55 -.43 -1.01 -.42 .25 -.10 -.19 -.13 -.10 - .06 -.06 -.04 -.01 -.13 -.30 -.10 -.11 1975 - J a n . Feb. Mar. Apr. May June July 14.4 14.4 15.2 16.2 16.9 17.1 18.2 12.3 12.6 13.2 14.3 14.9 15.1 16.1 2.1 1.8 2.0 2.0 2.1 2.1 2.1 -.04 .05 .71 1.13 .73 .27 .94 .06 .30 .60 -.10 -.25 . 11 1.07 .62 .27 .97 .06 .11 .07 -.03 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. T a b l e 11 NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN MILLIONS O F DOLLARS PERIOD TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES INTERMEDIATE AND LONG-TERM I S S U E S TOTAL FHLB FHLMC FNMA 1973 - J u l y Aug. Sept. Oct. Nov. Dec. +1,475 +1,693 +1,910 +1,946 +11 +598 +1,528 +1,349 +1,850 +1,950 -150 +256 +998 +1,349 +1,500 +1,300 — — 1974 - J a n . Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. -671 -695 +424 +508 +1,442 +2,699 +1,804 +878 ' +2,768 +1,665 -89 +507 -756 -657 +450 -4 +992 +2,250 +1,499 +200 +2,750 +1,599 +93 +961 -800 -657 —- — — -4 +992 +1,500 +1,000 +400 +1,700 +1,499 -217 +470 — — — —— — +750 +499 1975 - J a n . Feb. Mar. Apr. May June p July p -242 -659 +440 0 -1,568 + 252 +165 -5 -254 + 689 +69 -1,279 + 600 +300 -4 -554 -11 -30 -1,279 0 0 — Notes: Based 011 d a t a from t h e T r e a s v r y Survey of Ownership. 1 / S a l e s of FHLB d i s c o u n t n o t e s began i n May 1974. £./ P r e l i m i n a r y . —— —— — —— -150 +530 — +350 +650 —— +256 +44 — -200 — — — — +300 0 -1 0 0 0 FNMA SHORT-TERM DISCOUNT NOTES -53 +344 +60 -4 +161 +342 +1,050 +100 +310 +491 +85 -38 -26 +512 +450 +449 +305 +678 +18 +66 -182 -454 -1 0 + 700 + 100 0 +600 +300 -237 -405 -249 -69 -289 -348 -135 — +450 —— 17 Table 12 NET CHANGE IN MORTGAGE HOLDINGS IN MILLIONS O F DOLLARS FINANCIAL INSTITUTIONS TOTAL INCLUDING FNMA-GNMA COMMERCIAL BANKS MSB's S & Ls INSURANCE COMPANIES Not S e a s o n a l l y A d j u s t e d 21,736 41,647 57,587 58,372 42,748 16,827 39,259 55,561 55,072 36,526 2,462 9,940 16,800 19,600 11,700 1,845 3,938 5,377 5,642 2,170 10,254 23,919 31,932 25,552 17,578 2,348 1,221 1,452 4,278 5,078 45 79 565 522 595 545 475 729 426 1,109 1,614 2,285 3,184 3,425 3,113 268 403 258 451 244 153 2,419 1,992 2,255 1,655" 1,476 1,082 500 400 500 1,311 1,586 2,329 3,458 3,966 4,406 860 1,512 1,942 3,268 3,909 4,364 100 -100 0 400 300 500 200 - 22 66 100 70 132 181 286 Seasonally Adjusted 2,847 2,461 1,986 2,205 1,973 1,456 533 509 734 98 67 -102 1,037 985 629 537 412 195 2,612 2,827 2,469 3,519 3,488 3,209 2,106 2,628 1,908 3,128 3,307 3,144 447 184 53 384 33 167 175 170 242 47 166 149 156 1,154 1,646 1,411 2,015 2,769 2,655 2,742 335 556 397 563 356 166 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 83 per cent of the net increase estimated for all holders in 1974. 2 Beginning January 1972 data reflect activity in limited amount of conventional mortgages. rq . T a b l e 13 NET INCREASE IN MORTGAGE DEBT OUTSTANDING' IN BILLIONS OF DOLLARS, SEASONALLY ADJUSTED ANNUAL RATES RESIDENTIAL QUARTER :3 MULTFAM1.)f & COMMERCIAI 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 4.4 4.6 4.7 5.4 6.0 5.4 5.3 5.3 10.4 10.1 10.0 10.7 2.2 2.2 1.7 1.4 9.4 11.6 15.0 16.2 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 27.4 35.5 38.5 41.2 19.4 26.2 28.6 31.3 8.0 9.4 9.9 9.9 7.7 9.8 11.5 10.5 15.7 19.2 21.4 20.4 2.2 2.4 2.3 2.5 62.8 64.9 65.1 68.3 46.1 47.0 47.1 49.5 37.7 37.4 38.0 40.0 8.4 9.6 9.1 9.5 14.1 15.3 15.3 16.3 22.5 24.9 24.4 25.8 2.6 2.6 2.6 2.5 83.4 75.6 71.3 57.9 63.1 53.9 51.4 38.3 53.1 44.0 41.8 31.7 10.0 9.9 9.6 6.5 16.3 17.8 16.3 15.0 26.3 27.8 25.9 21.5 4.1 3.8 3.6 4.6 58.5 65.3 50.0 38.6 39.5 44.0 35.7 23.7 32.1 37.1 27.5 17.3 7.4 6.8 8.2 6.4 15.4 17.3 9.0 7.6 22.7 24.1 17.2 14.0 3.6 4.0 5.3 7.3 35.2 26.0 21.3 4.8 4.4 9.2 4.8 TOTAL TOTAL 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 1970 I II III IV 20.7 22.9 28.5 31.8 14.4 16.8 21.3 22.8 1971 - I II III IV 37.3 47.7 52.3 54.2 1972 I II III IV . 1973 - I II III IV 1974 - I II III IV 1975 - I 1- to 4 FAMILY MULTIFAMILY COMMERCIAI 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 deb^egmbmed. 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 UNITS, SEASONALLY A D J U S T E D ANNUAL RATES PERMITS 1 PERIOD 1969 1970 1971 1972 1973 1974 TOTAL COMPLETIONS STARTS 1 —FAMILY 2-OR MORE FAMILY TOTAL 1 —FAMILY 2-OR MORE FAMILY 1,324 1,352 1,925 2,219 1,820 1,074 626 647 906 1,033 882 644 698 705 1,018 1,186 937 431 1,467 1,434 2,052 2,357 2,045 1,338 811 813 1,151 1,309 1,132 888 656 621 901 1,048 914 450 1975 - J a n . Feb, Mar. Apr. May 689 701 677 837 912 508 515 503 603 658 182 186 173 234 254 999 i1 1 , 0 0 0 ! 985 1 980 | 1,130 739 733 775 762 887 260 267 210 218 243 June 949 679 270 j 1,088 879 July 1,007 691 316 I 1,238 927 ^ 209 1 TOTAL 1,399 1,418 1,706 1,972 2,005 | MOBILE HOME 1 —FAMILY 2-OR MORE FAMILY S H I P M E N T S 808 802 1,014 1,143 1,166 592 617 692 828 838 413 401 497 576 580 l y ,535 1,320 1,305 1,211 1,265 964 , 770 734 756 823 571 550 571 455 442 185 219 199 194 224 1,107 735 372 210 311 NOTES: Private building permits (for 14,000 areas with permit systems, excluding farm), starts, and completions are Census Bureau data. 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 more than half of the units in the structure are ready for use. Private mobile home shipments are Mobile Home Manufacturers Association data converted to seasonally adjusted annual rate by Census Bureau. 1 Permit data for 1969 and 1970 based on 13,000 areas with permit systems • H T a b l e 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES CONVENTIONAL LOANS PRIMARY MARKET EXISTING HOMES NEW HOMES PERIOD HUD(FHA) INSURED LOANS SECONDARY MARKET NEW HOMES 1 1 1 SPREAD BETWEEN RETURNS ON NEW Aaa CONVENTIONAL UTILITY AND HUD(FHA) BOND NEW HOME YIELD MORTGAGES (IN PER CENT) (BASIS POINTS) RATE (IN PER CENT) SPREAD (BASIS POINTS) RATE (IN PER CENT) SPREAD (BASIS POINTS) YIELD (IN PER CENT) SPREAD (BASIS POINTS) DISCOUNT (PERCENTAGE POINTS) 1973 - High Low 8.95 7.70 107 31 8.95 7.75 107 37 9.18 7.55 130 14 9.4 2.2 21 -23 8.36 7.38 1974 - High Low 9.80 8.55 45 -70 9.80 8.60 50 -70 10.38 8.54 44 -25 6.3 2.3 1 -70 10.46 8.10 1974 - Oct. Nov. Dec. 9.70 9.55 9.45 -33 -13 n.a. 9.70 9.60 9.45 -33 - 8 n.a. 10.13 10 4.6 -43 9.51 n.a. 3.8 - 6 10.03 9.68 n.a. 1975 - J a n . Feb. Mar. Apr. May 9.15 9.05 8.90 9.00 9.05 9.00 15 11 -70 -66 -57 -37 9,20 9.05 8.95 9.05 9.10 9.05 20 11 -65 -61 r52 -32 8.99 8.84 8.69 n.a. 9.16 9.06 - 1 -10 -91 n.a. -46 -31 3.8 2.6 5.4 n.a. 5.0 4.3 16 21 21 n.a. -ii - 6 1| 1 9.00 8.94 9.60 9.66 9.62 9.37 1 NOTES: 1 Grow 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 6 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. f a b l e 16 FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS CONVENTIONAL GOVERNMENT-UNDERWRITTEN DATE O F AUCTION AMOUNT (IN MILLIONS O F D O L L A R S ) OFFERED 1974 - High Low 1 ACCEPTED AVERAGE YIELD AMOUNT (IN MILLIONS O F D O L L A R S ) | ACCEPTED OFFERED AVERAGE YIELD 1155 (3/25) 333 (3/25) 10.59 (9/9) 164 (4/18) 63 (4/8) 1 0 . 7 1 (9/9) 26 (11.18) 18 (11/18) 8 . 4 3 (2/25 14 (10/21) 7 (11/18) 8.47 (3/11: 1975 - J a n . 13 27 25.3 41.4 21.2 28.6 9.37 9.12 17.9 11.1 14.9 10.6 9.50 9.39 Feb. 10 24 24.6 36.2 18.1 23.8 8.98 8.87 14.8 20.0 9.1 9.1 9.20 9.04 Mar. 10 24 99.2 460.5 60.1 321.4 8.78 8.85 34.4 60.7 22.1 35.8 8.96 9.00 Apr. 7 21 551.6 470.9 277.2 247.3 8.98 9.13 99.8 79.2 44.6 64.8 9.13 9.26 May 5 19 525.5 165.6 280.4 115.0 9.29 9.25 69.8 46.4 43.9 38.4 9.43 9.41 June 2 16 30 172.5 73.4 358.7 80.4 38.6 246.9 9.14 9.06 9.07 51.2 28.5 67.5 27.1 15.7 47.3 9.26 9.21 9.18 July 14 28 333.2 415.8 174.9 247.7 9.10 9.17 71.4 56.5 35.8 34.5 9.20 9.26 Aug. Sept. . 11 578.7 365.5 9.32 96.9 48.9 9.38 25 643.1 223.0 9.50 98.5 31.0 9.55 8 530.1 197.7 9.70 96.9 43.9 9.75 NOTES: Average secondary market yields are gross before deduction of the fee of 38 basis points paid for mortgage servicing. 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 Federal National Mortgage Association (FNMA) commitment fees and FNMA stock purchase and holding requirements on 4-month commitments. Mortgage amounts offered by bidden relate to total eligible bids received.
@FedFRASER