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/ Capital Market Developments S e p t e m b e r 18, 1 9 7 8 Prepared by the CAPITAL MARKETS SECTION in conjunction with the MORTGAGE and CONSUMER FINANCE SECTION DIVISION OF RESEARCH AND STATISTICS BOARD OF GOVERNORS F E D E R A L RESERVE SYSTEM Washington, D C. 20551 9 # Index SUBSCRIPTION RATES: Weekly $ 1 5 . 0 0 per year or $.40 each in the United States, its possessions, Canada, and Mexico; 10 or more of the same issue to one address, $ 1 3 . 5 0 per year or $ . 3 5 each. Elsewhere, $20.00 per year or $.50 each. Address requests to Publications Services, Division of Administrative Services, and make payment remittance payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. Currency. TABLES 1 - 6 S E C U R I T Y VOLUME AND YIELDS 7, 8 STOCK MARKET AND S E C U R I T Y CREDIT 9 - 1 6 MORTGAGE MARKET SYMBOLS e ESTIMATE P r PRELIMINARY REVISED n.a. NOT AVAILABLE DATA DO NOT,^EX 1ST 3 Table 1 YIELDS, VOLUME AND RECEPTION C O R P O R A T E BOND MARKET WEEK ENDING YIELDS NEW ISSUE 1 A a a UTILITY VOLUME RECENTLY OFFERED A a a UTILITY 2 3 GROSS OFFERINGS ( $ MILLIONS) PER C E N T S O L D BY END O F WEEK NEW I S S U E S 4 IN SYNDICATE ( $ MILLIONS) 1978 - July 7 14 21 28 9.18 9.17 9.12 9.08 9.20 9.22 9.19 9.10 76 710 742 435 41 89 92 95 45 75 63 20 Aug. 4 11 18 25 8.90 8.81 8.80 8.91 8.89 9.00 8.87 310 190 43 688 100 93 100 82 0 14 0 123 1 8 15 8.80 8.77 8.74p 8.85 8.79r 8.72p 133 437 390 68 97 77 33 15 90 Sept. - - MUNICIPAL BOND MARKET YIELDS WEEK ENDING MOODY'S NEW ISSUE Aaa VOLUME BOND BUYER 2Q-BOND INDEX 3 GROSS OFFERINGS ( $ MILLIONS) PER C E N T S O L D BY END O F WEEK NEW I S S U E S 4 IN SYNDICATE ( $ MILLIONS) 1978 - July 7 14 21 28 5.85 5.85 5.75 5.74 6.31 6.32 6.26 6.24 156 1,041 1,027 757 86 91 95 86 156 165 123 191 Aug. 4 11 18 25 5.65 5.55 5.50 5.60 6.12 6.03 6.19 6.11 1,916 1,027 818 1,485 90 92 89 95 184 172 188 179 Sept. 1 8 15 5.50 5.50 5.40 6.16 6.13 6.02 653 280 500 89 85 96 156 139 57 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 O F F E R E D A a a UTILITY 2 MOODY'S SEASONED CORPORATE Aaa 3 U . S . G O V T . 20-YEAR C O N S T A N T MATURITY 4 BOND BUYER 2D-BOND INDEX 1974 - High Low 10.61 ( 1 0 / 4 ) 8.05 (2/15) 10.52 (10/11) 8.13 (1/4) 9.39 (10/11) 7.73 ( 1 / 4 ) 8.68 (8/30) 7.39 ( 1 / 4 ) 7.15 (12/12) 5.15 (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 ) 8.63 (9/19) 7.63 (2/21) 7.67 ( 1 0 / 3 ) 6.27 ( 2 / 1 3 ) 1976 - High Low 8.95 (5/28) 7.93 (12/10) 9.10 (1/2) 7.84 (12/31) 8.66 ( 5 / 2 8 ) 7 . 9 1 (12/31) 8.17 ( 5 / 2 8 ) 7.27 (12/31) 7.29 (1/2) 5.95 (12/16) 1977 - High Low 8 . 3 6 (12/16) 7.90 ( 1 / 7 ) 8 . 4 8 (12/30) 7.95 ( 1 / 7 ) 8 . 2 8 (12/30) 7.88 ( 1 / 7 ) 7.99 (12/30) 7.26 ( 1 / 7 ) 5.93 (2/4) 5.45 (11/17) 1978 - High Low 9.18 ( 7 / 7 ) 8 . 6 0 (3/24) 9.22 (7/14) 8.48 (1/6) 8.90 (7/14) 8.30 ( 1 / 6 ) 8.72 ( 7 / 1 4 ) 8.02 (1/6) 6.32 (7/13) 5.58 (3/17) 1978 - July 7 14 21 28 9.18 9.17 9.12 9.08 9.20 9.22 9.19 9.10 8.85 8.90 8.89 8.88 8.68 8.72 8.69 8.67 6.31 6.32 6.26 6.24 Aug. 4 11 18 25 8.90 8.81 8.80 8.91 8.89 9.00 8.87 8.76 8.66 8.70 8.69 8.49 8.41 8.52 8.42 6.12 6.03 6.19 6.11 8.80 8.77 8. 74p 8.85 8.79r 8. 72p 8.67 8.67 8. 62p 8.43 8.39r 8. 35p 6.16 6.13 6.02 Sept. 1 8 15 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 weeks. 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. 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 PERIOD CORPORATE S T A T E AND LOCAL 1978 1977 1976 1978 1977 1976 February 3,013 2,657 March 4,442 4,362 2,792 5,578 3,381 3,863 6,632 3,298 2,746 4,751 3,402 3,442 4,063 2,451 2,885 3,365 April 3,285 3,696e 5,031e 3,998 3,797 5,660 3,507 4,186 6,439 3,800 5,420 4,238 3,409 4,566 5,786 2,218 3,575 3,115 3,300e 2,800e 4,289 3,469 4,177 3,216 3,357 4,817 3,716 6,lOOe 3,113 4,118 4,013 2,734 2,821 2,814 4,221 5,331 6,531 4,511 3,074 6,503 3,807 3,332 3,646 3,524 3,336 2,342 12,732 13,455 11,935 16,083 13,876 14,132 11,390 14,088 10,795 13,458 10,907 13,761 11,244 10,785 8,701 8,908 8,369 9,202 26,187 38,122 54,205 28,008 24,253 39,398 53,488 24,668 35,912 46,697 17,609 25,978 35,180 January May June July August September October November December 01 10,112 02 12,012e 03 04 1st Half 3 Qtrs. 22,124e Year NOTES: 1 • Securities and Exchange Commission estimates of gross proceeds. 2 Public S e c u r i t i e s A s s o c i a t i o n e s t i m a t e s of p r i n c i p a l amounts. ® Estimated by Federal Reserve Board on the b a s i s of a v a i l a b l e d a t a . Table 4 NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER IN MILLIONS O F DOLLARS G R O S S P R O C E E D S BY TYPE O F I S S U E PERIOD BONDS TOTAL PUBLICLY OFFERED COMMON AND PRIVATELY P R E F ERRED PLACED STOCK G R O S S P R O C E E D S BY TYPE OF ISSUER MEMO I S S U E S INCLUDED FOREIGN CONVERTIBLE MANUFACTURING PUBLIC UTILITY 3,031 3,440 3,250 4,054 3,047 4,125 2,901 4,246 1,415 1,059 644 1,320 5,238 4,830 5,140 6 ,460 2,218 2,367 844 4,634 COMMUNICATIONS OTHER ISSUERS 1977 - I II III IV 12,732 13,455 11,935 16,083 6,498 5,606 6.215 5,867 3,527 4,975 3,506 5,999 2,707 2,874 2,214 4,217 858 1,810 1,560 1,025 1978 - I 10,112 4,748 3,383 1,981 1,275 5,578 3,998 3,797 5,660 4,289 3,469 4,177 4,221 5,331 6.531 2,610 1,961 1,600 2,045 2,360 1,947 1,908 2,114 2,211 1,542 1,773 1,446 949 2,580 972 965 1,569 979 1,200 3,820 1,195 591 1,248 1,035 695 557 700 1,128 1,920 1,169 125 600 350 850 935 150 475 300 425 300 0 50 2 56 25 262 208 1 22 16 1,145 1,381 643 1,416 1,349 1,068 833 731 782 2,541 1,588 984 1,670 1,471 903 497 1,501 1,437 1,729 1,080 808 334 309 416 277 45 322 8 1,013 299 2,038 1,298 1,176 2,356 1,761 1,858 1,521 2,045 1,805 2,610 3,013 2,657 4,442 3,285 1,382 1,464 1,902 1,958 998 667 1,718 853 633 526 822 474 325 0 950 550 0 0 4 20 273 716 1,229 549 644 465 1,258 743 519 34 291 35 1,578 1,441 1,665 1,960 1977 - March April May June July August September October November December 1978 - January February March April 6 108 495 39 NOTES: 1 Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: Securities and Exchange Commission. http://fraser.stlouisfed.org/ Federal eReserve Bank of St.#Louis t # $ e # e e # ' e T a b l e 5A INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 1 September 5 through September 15, 1978 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) Notes Debt. 1 s t . mtg. Debt. Debt. Debt. Conv. debt. 1 s t mtg. 1 s t mtg. Com. s t k . Com. s t k . Com. s t k . Com. s t k . Com. s t k . 200.0 100.0 75.0 25.0 75.0 150.0 25.0 20.0 75.0 40.3 23.4 95.0 16.2 54.4 MATURITY COUPON RATE OFFERING YIELD MOODY'S/S&P'S RATINGS CORPORATE P h i l i p Morris Inc. Anheuser-Busch Inc. Central Power & Light Co. Shearson-Haydon Stone Co. Ramada Inns Inc. Southern B e l l Tele. & Tel. Co. N a t i o n a l CCS Inc. Iowa I l l i n o i s Gas & E l e c t r i c Co, Consumers Power Co. Texas Commerce Bancshares Dravo Corp. Consumers Power Co. I o w a - I l l i n o i s Gas & E l e c . Co. Oklahoma Gas & E l e c t r i c Co. 1984 2008 2008 2003 1993 2018 1998 2008 2008 NOTES: * Rights offering. 1 Includes only corporate and other security offerings of S15 million and over; excludes options, exchanges, and secondary offer,n. / 8.65 8.55 8.88 10.75 10.00 8.63 6.38 8.75 9.00 8.65 8.55 8.85 10.75 11.56 8.63 6.38 8.75 9.00 A/A Aa/AA Aa/AA --/BBBB/B Aaa/AAA —/B Aa/AA A/A- 00 Table 5B INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 1 September 5 through September 15, 1978 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY NET INTEREST COST OFFERING YIELD Baal/-Aa/AA A/A A/A Aaa/AAA Aaa/AAA Aaa/AAA A/AA/AAa/AA A-1/A+ A-1/A+ A-1/A+ MOODY'S/3&P'S RATINGS STATE AND LOCAL Industry, C a l i f . Florida S t a t e Board of Education Pennsylvania I n d u s t . Dev. Auth. Pennsylvania I n d u s t . Dev. Auth. Washington Public Power Supply Sys. Washington P u b l i c Power Supply Sys. Washington P u b l i c Power Supply Sys. New J e r s e y H l t h . F i n . Auth. New J e r s e y H l t h . Fin. Auth. Fargo, N.D. Tennessee Hsg. Dev. Agy. Tennessee Hsg. Dev. Agy. Tennessee Hsg. Dev. Agy. M a s s a c h u s e t t s Mun. Wholesale E l e c t . Co. Massachusetts Mun. Wholesale E l e c t . Co. Baytown Area Water Auth., Tex. V i r g i n i a Hsg. Dev. Auth. V i r g i n i a Hsg. Dev. Auth. i j G.O. G.O. Rev. Rev. Rev. Rev. Rev. Rev. Rev. G.O. Rev. Rev. Rev. 50.0 125.0 13.9 5.4 66.4 43.0 90.6 3.3 8.0 13.1 37.4 32.0 5.1 1980-2018 1979-2008 1980-1993 1998 1985-2004 2010 2018 1981-1996 2010 1979-1997 1980-1997 2009 2017 7.54 5.90 6.66 6.66 6.27 6.27 6.27 5.18 6 .65 6.65 6.65 5.25-7.50 4.40-6.20 5.10-6.60 6.80 4.80-6.00 6.38 6.47 5.20-6.90 7.10 4.40-5.50 4.80-6.50 6.84 6.90 Rev. 16.4 1988-2000 6.82 5.80-6.60 A-1/A+ Rev. Rev. Rev. Rev. 58.6 11.9 7.7 42.6 2018 1981-2000 1980-1997 2021 6.82 5.78 6.84 4.70-6.00 4.80-6.30 6.70 A-1/A+ A/A A-l/AA A—1/AA NOTES: Includes only state and local security offerings of $10 million and over; excludes secondary offerings. For State and local government securities, G O. denotes general obligation; Rev. denotes revenue obligations. — — — T a b l e 6A FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 1 As of September 15, 1978 ISSUER TYPE AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING CORPORATE Union E l e c t r i c Co. Com. s t k . Mercantile Texas Corp. Com. s t k . Gulf Power Co. 1 s t mtg. Ohio Edison Co. Pfd. s t k . *E1 Paso Co. Gov't, g t d . Bally Manufacturing Co. Conv. debt. Metro Edison Co. 1 s t mtg. Tipperary Corp. Units Rochester Gas & E l e c t r i c Co. Com. s t k . Montana Dakota U t i l i t i e s Co. 1 s t mtg. Washington Water Power Co. Com. s t k . Dayton Power & Light Co. Com. s t k . T r a i l e r Train Co. Equip, t r . United Telephone Co. of Ohio Debt. P u b l i c S e r v i c e Co. of Indiana 1 s t mtg. Public Svc. Co. of Indiana Com. s t k . Public S e r v i c e of Colorado 1 s t mtg. Texas Gas Transmission Corp. Com. s t k . *Charter Co. Units *Avco F i n a n c i a l S e r v i c e s Inc. Debt. Natural Rural U t i l i t i e s Coop. Fin. Corp. Bonds Sea Containers Inc. Debt. Consolidated O i l & Gas Co. Debt. General Cable Corp. Pfd. s t k . (conv. ) Chesapeake & Potomac Tel. Co. of Maryland Debt Central I l l i n o i s P u b l i c S e r v i c e Co ,1st mtg. S i e r r a P a c i f i c Power Co. Com. s t k . El Paso E l e c t r i c Co. 1 s t mtg. El Paso E l e c t r i c Co. Pfd. s t k . Carolina Power & Light Co. Com. s t k . D e t r o i t Edison Co. 1 s t mtg. Toledo Edison Co. 1 s t mtg. New Orleans P u b l i c S e r v i c e Co. 1 s t mtg. Southern C a l i f o r n i a Edison Co. Com. s t k . Long I s l a n d Lighting Co. Com. s t k . Georgia Power Co. 1 s t mtg. *Gulf S t a t e s U t i l s . Com. s t k . 60.0 30.0 25.0 45.0 30.1 50.0 50.0 40.0 20.0 20.0 20.0 42.5 24.0 35.0 100.0 34.5 50.0 45.0 40.0 100.0 Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. 50.0 25.0 24.0 53.0 Sept. Sept. Sept. Sept. 125.0 25.0 15.0 30.0 20.0 76.0 70.0 65.0 15.0 165.0 120.0 100.0 56.0 Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. NOTES: * Included in table for first time. 1 Includes only corporate and other security issues of $15 million and over; excludes exchanges, options 19 19 19 19 20 20 20 20 20 21 21 21 21 21 25 25 26 27 28 3 3 4 5 5 11 11 12 17 17 17 18 19 T a b l e 6A C o n t i n u e d FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY ' As of September 15, 1978 TYPE ISSUER AMOUNT (IN MILLIONS O F DOLLARS) APPROXIMATE DATE OF OFFERING CORPORATE *Ohio B e l l Telephone Co. ^Southern C a l i f o r n i a Gas Co, ^Southern C a l i f o r n i a Edison Co* *New York State Electric & Gas Co. *lntegon Corp. *Golden Nugget Inc. *Risdon Manufacturing Co. Wainoco O i l Corp. Debt. 1st mtg. 1st mtg. Com. s t k . Conv. debt. Debt. Debt. Conv. d e b t . 150.0 50.0 200.0 OTHER Finalnd, Republic of ^European Investment Bank ^European Investment Bank Debt. Notes Debt. 100.0 75.0 125.0 37.0 25.0 45.0 20.0 25.0 Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. 24 25 31 Sept. Sept. Sept. 20 27 27 31 11 Table 6B FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY ' As of September 15, 1978 AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING ISSUER TYPE C a l i f o r n i a P o l l . C t r l . Fin. Auth. Columbus, Ohio Hillsborough Co. Sch. D i s t . #1, Flc Anchorage, Alaska Louisiana, S t a t e of San Francisco Airports Comm. , Calif. Tulsa Airports Improve. T r u s t , Okie ^Baltimore City Housing Corp., Md. *Port Auth. of New York & New Jersey 1 1 l i n o i s Univers i t y Houston, Texas Wayne Co., Mich. D a l l a s , Texas Alabama Pub. Sch. & C o l l e g e Auth. *South Dakota Dev. Auth. ^Puerto Rico Water Resources Auth. Vermilion Par. Sch. D i s t . , La. Charleston, S.C. Kans as Ci ty , Kane as Shreveport, La. Chula V i s t a Redev. Agncy, C a l i f . ^Nassau Co. , N.Y. I l l i n o i s Indust. P o l l . Ctr. Fin. Auth. Kentucky Turnpike Auth. Municipal A s s t . Corp., N.Y.C. Jasper Medical C l i n i c B d . , Ala. ^Minneapolis, Minn. ^Wisconsin, S t a t e of S a l t River Agric. Improv. & Pwr. D i s t . , Ariz. *Cuyahoga Co., Ohio Sacramento Muni. U t i l . D i s t . , Cal. Oregon, S t a t e of Austin, Texas Austin, Texas *New York, S t a t e of *North Carolina, S t a t e of *Los Angeles Dept. of Water & Pwr. Calif. Rev. G.O. Rev. Rev. G.O. Rev. Rev. Rev. Rev. Rev. Rev. G.O. G.O. Rev. Rev. Rev. G.O. Rev. Rev. Rev. Rev. G.O. 25.0 40.3 16.6 18.0 83.7 90.0 47.0 12.0 100.0 35.5 45.0 14.4 25.0 60.0 21.5 100.0 10.0 15.0 30.0 22.0 48.8 52.8 Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. 18 18 19 19 19 19 19 20 20 20 20 20 20 20 21 21 21 26 26 26 26 27 Rev. Rev. G.O. Rev. G.O. G.O. 13.0 250.0 125.0 63.0 12.7 77.3 Sept. Sept. Sept. Sept. Oct. Oct. 27 Rev. Rev. Rev. G.O. Rev. G.O. G.O. G.O. 92.0 22.9 40.0 200.0 77.8 13.3 60.0 75.0 Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. 4 5 5 10 12 12 17 18 Rev. 40.0 Oct. 18 STATE & LOCAL NOTES: 1 Includes 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. 3 4 Table 7 STOCK PRICES AND VOLUME 1 STOCK PRICES DATE 3 4 2 TRADING VOLUME NYSE AMEX NASDAQ 1974-High Low 53 .37 ( 3 / 1 3 ) 32 .89 (10/3) 891.66 ( 3 / 1 3 ) 577.60 (12/6) 102 .01 ( 3 / 1 4 ) 58 .26 ( 1 2 / 9 ) 96..53 (3/15) 54,.87 (10/3) 24.9 (1/3) 7.5 (7/5) 4.4 (1/3) .9 ( 9 / 2 6 ) 7 .5 ( V 3 ) 2 .8 ( 7 / 5 ) 1975-High Low 51 .24 ( 7 / 1 5 ) 37 .16 ( 1 / 8 ) 881.81 (7/15) 632.04 ( 1 / 2 ) 96 .86 ( 7 / 1 5 ) 62 .20 ( V 2 ) 8 8 . 0 0 (7/15) 60,.70 ( 1 / 2 ) 35.2 ( 2 / 1 3 ) 8.7 (9/15) 4.2 (2/21) 1.1 (9/15) 8 .1 ( 2 / 1 3 ) 2 .5 ( 9 / 1 5 ) 1976-High Low 57 .51 ( 9 / 2 1 ) 48 .04 ( V 2 ) 1014.79 ( 9 / 2 1 ) 858.71 (1/2) 107 .05 ( 7 / 1 2 ) 84 .31 ( 1 / 2 ) 92..52 ( 7 / 1 5 ) 78.,06 ( 1 / 2 ) 44.5 (2/20) 10.3 ( 1 / 2 ) 8.6 (2/20) 1.1 ( V 2 ) 11 .1 ( 2 / 2 0 ) 3 .5 ( 1 / 2 ) 1977-High Low 57 .69 ( V 3 ) 49 .78 ( 1 1 / 2 ) 999.75 ( V 3 ) 800.85 (11/2) 127 .89 ( 1 2 / 3 0 ) 105..05 (12/30) 109 .61 ( 1 / 1 2 ) 93..66 ( 4 / 5 ) 35.3 ( 1 1 / H ) 10.6 ( 1 0 / 1 0 ) 4.2 (V13) 1.4 (9/22) 11 .2 ( 1 1 / 1 0 ) 5 .1 ( 5 / 2 7 ) 1978-High Low 60,.38 ( 9 / 1 2 ) 48 .37 ( 3 / 6 ) 907.74 ( 9 / 8 ) 742.12 ( 2 / 2 8 ) 176.87 ( 9 / 1 5 ) 119 .73 ( 1 / 1 1 ) 139.,25 ( 9 / 1 3 ) 99..09 (1/11) 66.4 ( 8 / 3 ) 7.6 ( 1 / 2 0 ) 7.7 (9/15) 1.3 (1/20) 18 .8 ( 5 / 1 8 ) 2 .8 ( 1 / 2 0 ) July 7 14 21 28 53 .34 54 .82 54 .91 56 .18 812.46 839.83 833.42 856.29 146 .30 149..92 151..84 154..15 119..16 121..58 123.,60 125..62 20.9 25.7 28.5 30.6 2.7 3.4 3.8 3.8 7 .8 9 .9 11 .3 11 .1 Aug. 4 11 18 25 58 58 59 59 .34 .53 .06 .22 888.43 890.85 896.83 895.53 157..93 161 .30 164..52 167..89 129..71 132..00 134.,71 135.,84 44.1 38.0 35.6 34.7 4.9 4.7 5.5 5.6 14 .2 14 .2 15 .0 14 .3 58, .54 60..24 58. 81 879.33 907.74 878.55 170..70 175..13 174.,06 135.,35 138.,36 137. 36 34.4 39.3 39.2 6.8 6.7 7.7 14 .2 14 .9 15 .7 N Y S E INDEX Sept. 1 8 15 D J INDUSTRIALS AMEX NA SDAQ 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 Volume figures are weekly averages of daily figures (millions of shares). 3 12/31/66 - 60 4 Based 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 B R O K E R S ON MARGIN STOCK 1 B R O K E R S ON CONVERTIBLE BONDS 3 2 BANKS UNREGULATED NONMARGIN S T O C K CREDIT AT BANKS OUTSTANDING 1977 - June July August September October November December 1978 - January February March April May June July August 9,230 9,460 9,560 9,590 9,560 9,610 9,740 9,590 9,780 9,920 10,260 10,660 11,090 11,190 1.1,740 198 204 200 196 19! , 246— 250 873 875 885 881 882 872 873 246 242 246r 248 245 242 851 2,565 877 2,544 855 2,544 914 2,560 series discontinued 2,551 2,568 2,587 2,581 2,579 2,604 2,568 CHANGE IN OUTSTANDING 1977 - June July August September October November December 1978 - January February March April May June July August 160 230 100 30 -30 50 130 -150 190 140 340 400 430 100 550 2 6 -4 -4 -5 q , 5/ n.a.— 4 72 -2 10 -4 1 -10 1 206 17 19 -6 -2 25 -36 -4 -4 4r 2 -3 -3 -22 26 -22 -59 -3 -21 series discontinued 16 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 value. 5 Data prior to November not s t r i c t l y comparable due to changes in r e p o r t i n g . 4 Table 9 SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN MILLIONS O F DOLLARS MUTUAL SAVINGS BANKS REGULAR DEPOSITS DATE NET FLOW 1974 1975 1976 1977 2,165 11,070 12,670 10,647 1 ANNUAL 3 GROWTH RATE 2.3 11.3 11.6 8.9 SAVINGS & LOAN ASSOCIATIONS NET NEW MONEY 2 -2,822 4,757 5,275 2,874 SHARE CAPITAL NET FLOW 16,006 42,769 50,169 50,963 ANNUAL 3 GROWTH RATE 7.1 17.6 17.6 15.2 NET NEW MONEY 4,668 29,276 34,369 32,004 TOTAL 2 DEPOSITS NET FLOW 18,171 53,839 62,839 61,610 ANNUAL 3 GROWTH RATE 5.6 15.8 15.9 13.5 NET NEW MONEY 2 1,846 34,033 39,644 34,783 NOT SEASONALLY ADJUSTED 1977-November December 406 1,425 99 -115 1,729 5,542 1978-January February March April May June , JulyE/ 626 476 1,712 -264 436 1,277 350 -59 170 338 -553 97 -97 50 2,745 2,297 7,153 558 2,380 6,645 3,031 1977-November December 515 655 4,7 5.9 1978-January February March April May June 721 370 448 341 543 487 972 6.5 3.3 4.0 3.0 4.8 4.3 8.6 July* 7 — —— —— — — — —— — — 1,516 883 2,135 6,967 2,877 2,073 2,592 401 2,145 1,744 2,818 SEASONALLY ADJUSTED 3,711 11.7 3,410 10.6 3,371 2,773 8,865 294 2,816 7,922 3,381 — 4,226 4,065 9 .9 9.4 2,012 2,226 2,846 2,133 3,009 3,454 5,200 2,733 2,596 3,294 2,474 3,552 3,941 6,172 6.3 5.9 7.5 5.6 8.0 8.8 13.7 —— — —— 6.2 6.8 8.7 6.5 9.1 10.3 15.4 —— — 1,615 768 —— — —• — i 2,818 2,243 2,930 -152 2,242 1,647 2,868 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. Source: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. A H.16 15 Table 10 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS OF DOLLARS, SEASONALLY A D J U S T E D NET C H A N G E OUTSTANDING COMMITMENTS PERIOD TOTAL MUTUAL ALL S A V I N G S SAVINGS BKS & LOAN ASSOCIATIONS (N Y. S T A T E ) TOTAL MUTUAL ALL S A V I N G S S A V I N G S BKS & LOAN ASSOCIATIONS (N Y. S T A T E ) 1972 25.3 20.3 5.0 7.48 6.28 1.20 1973 20.0 16.4 3.5 -5 .31 -3.92 -1.39 1974 14.7 12.4 2.3 -5 .20 -3.91 -1.29 1975 20.2 18.2 2.2 5 .81 6.06 - .25 1976 27.8 25 .0 2.8 .76 .70 .06 1977 - Jan Feb . Mar Apr May June July 28 .2 28.6 29.7 30.2 30.6 31.9 32.4 33.9 35 .2 37 .3 38.7 39.0 25 .4 25.6 26.5 27.0 27.3 28.1 28.7 30.0 31.0 32 .8 34.0 34.3 2 .8 3.0 3.2 3.2 3 .3 3.8 3.8 3.9 4.1 4.5 4.7 4.6 .45 .43 1.07 .49 .37 1.33 .54 1.50 1.24 1.95 1.41 .24 .38 .23 .90 .49 .30 .80 .57 1.32 1.07 1.78 1.18 .34 .07 .20 .17 38.6 37 .6 37 .0 36.3 35 .8 35.9 35 .7 34.2 33.3 32.8 32 .0 31.5 31.3 31.2 4.4 4 .3 4 .2 4.2 4 .3 4 .6 4.5 - .35 -1.05 - .45 - .74 - .50 .10 - .18 - .11 .96 - .51 - .70 - .55 - .24 - .10 Aug Sep Oct Nov Dec 1978 - Jan Feb Mar Apr May June July .07 .53 - .03 .18 .17 .37 .23 - .10 - .24 .09 .06 .04 .05 .34 - .08 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. http://fraser.stlouisfed.org/ H.16 Federal Reserve Bank of St. Louis 16 T a b l e 11 NET NEW MONEY B O R R O W I N G S BY MAJOR HOUSING A G E N C I E S IN MILLIONS OF DOLLARS PERIOD TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES INTERMEDIATE A N D LONG-TERM I S S U E S TOTAL FHLB FHLMC FNMA FNMA & F H L B SHORT-TERM DISCOUNT NOTES 1 1975 - July Aug. Sept. Oct. Nov. Dec. +236 -398 215 587 152 669 +300 -700 100 850 200 600 0 -700 0 +150 0 0 0 0 0 0 200 0 +300 0 100 700 0 600 —64 302 115 -263 —48 69 1976 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. -197 -964 -851 124 -953 -107 -58 787 195 -37 -552 145 0 -604 -304 693 -607 -206 291 +190 190 310 -297 -219 0 -1,100 0 0 —600 0 0 0 0 0 -300 0 0 196 -4 -7 -7 —6 -9 +190 -10 —8 -9 -7 0 300 -300 700 0 -200 300 0 200 318 12 -212 -197 -360 -547 -569 -346 99 -349 597 5 -347 -255 364 1977 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 12 -862 289 344 532 605 531 347 195 247 466 1,078 188 -592 -354 746 297 203 553 301 -291 211 500 0 0 -200 0 —6 105 0 0 304 0 0 300 0 — 189 -393 -4 0 200 3 -47 -3 9 11 200 0 -1 1 -350 752 —8 200 600 0 -300 200 0 0 -176 -270 643 -402 235 402 -22 46 486 -36 -34 1,078 1978 - J a n . Feb. Mar. April May June Jul ye Aug. 399 1,712 887 848 3,091 1,492 1,605 1,829 -12 1,388 -17 600 1,483 1,276 1,881 1,200 0 1,400 0 0 1,500 0 700 1,200 -12 -12 -17 0 -17 276 -19 0 0 0 0 600 0 1000 1200 0 411 324 904 248 1,608 216 -276 629 NOTES: Based on data from Treasury Survey of Ownership. Digitized FRASER 1 forSales of FHLB discount notes began in May 1974. 17 Table 12 NET CHANGE IN MORTGAGE H O L D I N G S IN MILLIONS O F DOLLARS PERIOD 1970 1971 1972 1973 1974 1975 1976 1977 2 FINANCIAL INSTITUTIONS TOTAL INCLUDING FNMA-GNMA TOTAL COMMERCIAL BANKS MSB's S & L's 21,930 41,406 57,587 58,372 42,739 43,497 62,783 96,814 17,020 39,018 55,561 55,072 36,517 38,658 64,903 95,924 2,462 9,940 16,800 19,600 11,700 4,200 13,900 25,400 1,956 3,938 5,377 5,642 2,172 2,236 4,074 6,474 10,254 23,919 31,932 25,552 17,567 29,289 44,515 58,566 I N S U R A N C E FNMA-GNMA COMPANIES 2,348 1,221 1,452 4,278 5,078 2,933 2,414 5,184 4,910 2,388 2,026 3,300 6,222 4,839 -2,120 890 3,019 3,409 4,835 4,856 5,021 5,663 3,999 406 304 488 854 373 850 320 498 473 608 1,244 773 4,305 4,041 4,830 4,300 3,993 4,619 3,638 544 377 615 817 509 851 379 600 560 747 1,455 969 Not S e a s o n a l l y Ad]us ted 1978 - Jan Feb Mar Apr May June July 5,557 6,155 8,749 9,304 10,307 11,107 5,237 5,657 8,276 8,696 9,063 10,334 1,400 1,600 2,400 2,500 3,100 3,200 412 344 553 486 569 621 S e a s o n a l l y Ad-justed 1978 - Jan Feb Mar Apr May June July 7,588 7,542 8,921 8,495 9,413 9,706 7,209 6,942 8,361 7,748 7,958 8,737 1,788 2,009 2,329 2,149 2,893 2,833 572 515 587 482 563 434 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. http://fraser.stlouisfed.org/ 2 Beginning January 1972 data reflect activity in limited amount of conventional mortgages. Federal Reserve Bank of St. Louis T a b l e 13 NET INCREASE IN MORTGAGE DEBT OUTSTANDING IN B I L L I O N S O F D O L L A R 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 2 QUARTER TOTAL 3 RESIDENTIAL TOTAL 1- t o 4 FAMILY MULTIFAMILY COMMERCIAL MULTFAMLY & COMMERCIAL FARM 1972 - I II III IV 67.6 74.1 77.6 88.1 49.3 54.1 59.1 63.6 38.0 41.0 48.1 47.9 11.3 13.1 11.0 15.7 14.8 16.5 14.9 21.0 26.1 29.6 25.9 36.6 3.5 3.5 3.6 3.6 1973 - I II III IV 80.6 87.4 80.7 70.4 56.0 59.9 56.2 48.5 47.8 46.9 43.7 40.6 8.2 13.0 12.5 7.9 19.1 21.7 19.4 16.4 27.3 34.7 31.9 24.3 5.6 5.8 5.0 5.5 1974 - I II III IV 69.9 70.9 54.5 46.7 48.7 47.2 35.1 29.7 39.2 40.3 28.4 25.4 9.5 6.9 6.7 4.3 17.5 18.7 13.6 11.2 27.0 25.6 20.3 15.5 3.6 4.9 5.8 5.9 1975 - I II III IV 44.0 55.0 62.3 67.7 29.7 39.8 45.3 50.8 28.9 39.8 44.9 51.9 0.8 0.0 0.4 —1.1 9.0 10.3 12.9 12.8 9.8 10.3 13.3 11.7 5.3 4.9 4.0 4.1 1976 - I II III IV 78.6 77.1 94.0 98.5 59.7 57.8 73.8 78.0 58.3 58.0 70.0 75.5 1.4 -0.1 3.8 2.5 13.7 14.5 . 13.4 13.0 15.0 14.4 17.2 15.5 5.3 4.8 6.9 7.6 1977 - I II III IV 105.3 136.4 142.1 152.1 82.0 1 113.1 115.1 ! 116.8 77.9 104.6 108.2 107.2 4.1 8.5 6.9 9.6 14.5 14.0 18.5 26.5 23.3 23.3 27.0 35.3 8.8 9.3 8.5 8.8 1978 - I I I (p) 131.4 136.5 . 99.3 103.3 89.0 93.0 10.3 10.3 22.4 23.4 33.0 33.9 9.7 9.8 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 R e s i d e n t i a l mortgage debt i n c l u d e s nonfarm only and i s sum of 1 - to 4 - f a m i l y and debt. m u l t i f a m i l y mortgage Table 14 PRIVATE HOUSING PERMITS, S T A R T S , COMPLETIONS, AND MOBILE HOME SHIPMENTS IN T H O U S A N D S PERMITS PERIOD TOTAL 1 —FAMILY OF UNITS. SEASONALLY j 1 2-OR MORE! ADJUSTED 1,324 1,352 1,925 2,219 1,820 1,074 939 1,297 1,677 626 647 906 1,033 882 644 676 894 1,125 698 705 l,018 1,186 937 431 264 403 552 1978 - Jan. Feb . Mar. Apr. May June July 1,526 1,534 1,647 1,740 1,597 1,821 1,616 1,032 957 1,037 1,157 1,058 1,123 1,017 494 577 610 583 539 698 599 1 I RATES MORE TOTAL 1—FAMILY 2-OR 1—FAMILY ; i 1 i | i 1 . ' : 1,407 1,434 2,052 2,357 2,045 1,338 1,160 1,538 1,987 811 813 1,151 1,309 1,132 888 892 1,162 1,451 656 621 901 1,048 914 450 268 376 375 1,548 1,569 2,047 2,165 2,054 2,124 2,085 1,156 1,103 1,429 1,492 1,478 1,445 1,416 392 466 618 673 576 679 669 2 - OR MORE FAMILY FAMILY ! MOBiLE COMPLETIONS STARTS TOTAL FAMILY 1969 1970 1971 1972 1973 1974 1975 1976 1977 ANNUAL | ' ! 1 ! ! I I HOME SHIPMENT 1,399 1,418 1,706 1,972 2,014 1,692 1,297 1,362 1,652 808 802 1,014 1,143 1,174 932 867 1,026 1,254 592 617 692 828 840 760 430 336 398 413 401 497 576 567 329 216 246 277 1,759 1,696 1,821 1,943 1,840 1,893 1,300 1,233 1,363 1,515 1,409 1,338 459 463 458 428 431 555 322 269 247 252 247 246 252 NOTES: Private building permits (for 1 4 , 0 0 0 areas w i t h permit systems, excluding farm), starts, and c o m p l e t i o n s are Census Bureau data. A dwelling unit is started w h e n e x c a v a t i o n begins. In t h e case of apartment buildings, all units are considered started at that time; however, all such units are considered c o m p l e t e d w h e n more than half of the units in the structure are ready for use. Private m o b i l e h o m e s h i p m e n t s are Mobile H o m e Manufacturers Association data converted to seasonally adjusted annual rate by Census Bureau. Permit data for 1 9 6 9 and 1 9 7 0 based on 1 3 , 0 0 0 areas with permit systems I ro o T a b l e 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES EXISTING H O M E S NEW H O M E S 1976 - High Low 1977 - High Low 1978 - Jan. Feb . Mar. Apr. May June July 1 1 PERIOD SPREAD BETWEEN NEW A a a R E T U R N S ON NEW HOMES UTILITY CONVENTIONAL 1 BOND AND HUD(FHA) YIELD NEW HOME DISCOUNT SPREAD (PERCENTAGE M O R T G A G E S (IN PER CENT) (BASIS (BASIS POINTS) POINTS) POINTS) HUD(FHA) INSURED L O A N S S E C O N D A R Y MARKET CONVENTIONAL L O A N S PRIMARY MARKET SPREAD (BASIS POINTS) YIELD (IN PER CENT) RATE (IN PER CENT) SPREAD (BASIS POINTS) RATE (IN PER CENT) 9.05 8.90 91 5 9 .10 8.95 95 10 9.06 8.25 59 8 4 .3 2 .0 65 - 4 8.72 8.05 9 .10 8.80 99 52 9 .20 8.85 98 63 9.11 8.40 73 22 4 7 1.7 40 4 8.31 8.01 9.15 9.25 9.30 9.40 9.60 9.75 9.80 NA 54 47 48 58 59 72 9 .20 9.25 9.30 9.45 9 .60 9.75 9.80 NA 54 47 53 58 59 72 9 .11 NA 9.29 9.37 9 .67 NA 9.92 NA NA 46 45 65 NA 84 4.7 NA 4.1 4.7 5 .0 NA 3.1 4 NA 1 3 - 7 NA 12 NA 8.71 8.83 8.92 9.02 9.16 9.08 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. http://fraser.stlouisfed.org/ Federal •Reserve Bank of St. •Louis H.16 & e # e # • # # r e « 21 T 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 1977 - High AVERAGE YIELD ACCEPTED AMOUNT (IN MILLIONS O F D O L L A R S ) OFFERED 855 ( 1 2 / 2 7 ) 570(12/27) 8 .98(12/27] 383 ( 5 / 2 ) Low 50 ( 9 / 7 ) 35 ( 9 / 7 ) 8.46 (1/10: 123 ( 7 / 2 5 ) AVERAGE YIELD ACCEPTED 278 ( 5 / 2 ) 9 . 2 1 (12/27 71 ( 9 / 1 9 ) 8 . 8 1 ( 1 / 1 0 ) 1978 - Jan. 9 23 1011.0 768 .8 605.3 356.6 9.13 9.21 403.6 546.3 192.8 256.8 9.28 9.37 Feb. 6 21 640.9 558.2 338.0 285 .5 9.27 9.35 633.6 580.5 299.3 266.7 9.45 9.53 Mar. 6 20 358.8 164.9 218.5 116 .4 9 .36 9.33 444 .8 378.7 266.4 246.1 9.59 9.62 Apr. 3 17 625 .5 283.8 363.7 165 .5 9.44 9.44 522.8 451.4 295 .3 282.8 9.69 9.74 May 1 15 30 655.1 611.4 851.2 349.9 269.9 446.9 9.52 9.63 9.83 645 .8 716.9 573.1 305 .4 362.5 300.4 9.80 9.89 10.01 June 12 26 522 .0 573 .0 285.2 351.4 9.86 9.96 350.1 224.4 207.0 135.0 10.07 10.13 July 10 24 503.3 253 .4 327.4 144.1 10.02 10.00 169.8 146 .2 90.5 88.4 10.17 10.21 Aug. 7 21 130.3 368.8 80.1 197.1 9.82 9.80 74.7 150.0 47.5 81.0 10.15 10.07 Sep 5 351.2 154.7 9.78 199.4 126.3 10.02 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 bidders relate to total eligible bids received. H.16
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