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L.5.8 Confidential (F.R.) EECOTOOLLED AFTER SIX APITAL MARKET DEVELOPMENTS INDEX D e v e l o p m e n t s in t h e C o r p o r a t e and M u n i c i p a l Bond M a r k e t s C a p i t a l Market Y i e l d s C a p i t a l Market V o l u m e Stock Market Mortgage Market SYMBOLS: Estimate Preliminary Revised Not a v a i l a b l e TABLE 1: Yields, Volume and Reception YIELDS MOODY'S SEASONED 1 NEW ISSUE Aaa WEEK ENDING: 1971 - Aug. CORPORATE BOND MARKET VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OFFERINGS OF WEEK WITHIN 28 DAYS 6 13 20 27 8.02 7.97 7.33 7.48 8.69 7.71 7.51 7.50 247 194 239 383 100 100 76 79 Sept. 3 10 17 24 7.38 7.21 7.56 7.60 7.45 7.42 7.44 7.44 413 285 673 54 Oct. n.a. 1 WEEK ENDING: MOODY'S SEASONED Aaa YIELDS BOND BUYER SEASONED 20 BOND INDEX 832e 77 93 90e 15 Oe n.a. n.a. n.a. n.a. n.a. MUNICIPAL BOND MARKET VOLUME 2 GROSS OFFERINGS PER CENT SOLD BY END OF WEEK BONDS SCHEDULED WITHIN 28 DAYS 6 13 20 21 5.88 5.80 5.15 5.45 6.07 6.03 5.49 5.71 203 570 232 415 72 80 90 78 1,076 588 750 970 Sept. 3 10 17 24 5.30 5.00 5.10 5.15 5.39 5.36 5.38 5.48 474 371 350 218e 91 34 77 68 805 848 910 1,397 1971 - Aug. Oct. 1 n.a. n.a. 955e n.a. 1 Derived by adjusting to a Aaa basis, new issues of publicly-offered corporate bonds with call protection, rated A, Aa, or Aaa by Moody's Investors Service (except serial and convertible issues, offerings of natural gas pipeline and foreign companies, and bonds guaranteed by the Federal Government.) 2 Millions of dollars unless otherwise indicated. Note: See footnotes to Table 3 / TABLE 2: Details on Inventories DATE " _OFFERED I | 9/23 9/23 9/22 9/21 9/15 9/15, 9/15 9/14 9/13 OFFERED AMOUNT (MIL. $) 15.0 14.0 200.0 38.0 30.0 50.0 200.0 125.0 23.0 75% 85% 95% 70% 90% 75% 90% 90% 60% 8.37 7.60 7.82 8.10 7.85 5.38 7.38 7.75 7.75 5 yrs A 10 yrs 10 yrs 5 yrs NR A Aa Ba Aaa Aaa —— 10 yrs 5 yrs 5 yrs / CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER COUPON IN YIELD CALL PROT. PORTION RELEASED1 YIELD Kentucky utilities 35.0 DATE Sept. 8.50 7.60 7.82 8.10 7.88 5.38 7.38 7.75 7.88 AMOUNT 9/23 1971 - August ESTIMATED PROPORTION SOLD Vt. Yank. Nucl'r Flower Mound New Comm GMAC Gen Amer Tran Central 111. Lt. Essex Int'l Mobil Oil So West Bell Tel Cent'1 111 Pub Serv DATE | RELEXSED 9/7 CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND YIELD CALL PROTECTION ISSUER COUPON 27 3 10 17 24 INVENTORIES 1 MUNICIPALS BLUE LIST 1 IN SYNDICATE 105 1 586 569 565 647r 634 67 243 112 111 7 5/8 7.45 +44 Aa 5 yrs 25% CORPORATES IN SYNDICATE 82 240 164 73 84 N.C. - No call protection. 1 figures in millions of dollars. Digitized for All FRASER vhich iF daily average of three days Blue List is daily average for week ended Friday, except for latest week endi-d Wednesday. All other figures arc as of Friday. TABLE 3: High Grade Bond Yields NEW CORPORATE Aaa 1 DATE MOODY'S SEASONED CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS 4 1969 - High Low 8.85 (12/5) 6.90 (2/21) 7,84 (12/26) 61,55 (1/12) 6.97 (12/26) 5.96 (1/24) 6.90 (12.18) 4.82 (1/28) 1970 - High Low 9.30 (6/19) 7.68 (12/18) 8.60 (7/3) 7.48 (12/31) 7.55 (5/29) 6.17 (12.18) 7.12 (5/29) 5.33 (12/11) 1971 - High Low 8.23 (5/12) 6.76 (1/29) 7.71 (8/13) 7.06 (2/12) 6.51 (6/18) 5.69 (3/23) 6.23 (6/24) 5.00 (3/18) 7.38 . 7.21 7.56 7.60 7.45 7.42 7.44 7.44 6.06 5.99 6.08 6.09 5.39 5.36 5.38 5.48 1971 - Sept. 3 10 17 24 1 \ New corporate issues, with call protection, adjusted (as described in footnote 1 of Table 1) to a Aaa basis> 2 Weekly average of daily figures. Average term of bonds included is 22-24 years. 3 Weekly average of daily figures. 4 Thursday figures. The average rating of the 20 bonds used in this index , falls midway between the four top groups as classified by Moody's Investors Service. Note--Highs and lows are for individual series and may be on different dates for different series. / ' 6 TABLE 4: Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) GROSS PROCEEDS CORPORATE 1 PERIOD 1971 1970 STATE AND LOCAL 2 1969 January February March 3,115 3,000 6,075 2,636 1,802 3,539 2,075 2,045 2,098 April May June 4,007 3,271 r 4,375 3,170 3,909 3,389 2,748 2,076 2,530 July August September 4,064 2,850e 2,768 2,274 2,518 2,478 1,427 2,427 3,777 4,182 3,980 1,933 2,375 2,532 12,190 11,654 7,977 10,468 8,560 11,939 6,218 7,354 6,332 6,840 23,844 18,445 27,005 38,944 13,572 19,904 26,744 October November December 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1971 1970 1969 2,705 1,839 2,144 1,340 1,214 1,555 1,262 987 538 1,907 2,135 2,008 1,647 996 1,085 1,801 1,110 737 1,928 l,828e 1,348 1,359 1,758 1,097 808 559 1,924 1,748 2,190 1,280 886 816 6,688 6,050 4,109 3,728 4,465 5,862 2,787 3,648 2,464 2,982 12,738 7,837 12,302 18,164 6,435 8,899 11,881 : Excluding finance companies 3 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 6,170 7,037 Year 1 2 3 1 Securities and Exchange Commission estimates of gross proceeds. Investment Bankers Association of America estimates of principal amounts. Total gross proceeds excluding offerings of sales and consumer finance companies. TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH TOTAL PUBLICLY OFFERED GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND ISSUES INCLUDED PRIVATELY PFD. MFG. FOREIGN CONVERTIBLE STOCK PLACED GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS ISSUERS 1 6,994 5,987 7,827 8,369 6,546 1,282 914 1,421 1,516 1,758 2,190 1,659 2,690 2,306 3,384 135 83 226 84 215 710 287 737 724 1,351 2,445 2,314 3,169 3,794 3,130 2,812 2,714 3,406 3,197 2,910 2,162 868 1,346 896 3,048 2,663 4,020 3,594 4,753 1970 - June July Aug. Sept. Oct. Nov. Dec. 3,389 2,768 2,274 3,518 3,777 4,181 3,979 1,931 1,831 1,731 2,425 2,390 3,001 2,436 436 320 205 . 389 304 283 834 1,021 617 338 704 1,083 898 709 26 68 11 4 56 11 159 82 107 59 121 388 184 165 939 638 682 994 1,006 1,107 1,056 1,103 843 630 1,241 1,101 1,350 955 353 144 279 445 371 " 693 282 994 1,143 682 838 1,300 1,033 1,687 1971 - Jan. Feb. Mar. 3,115 3,000 6,075 2,033 2,201 4,135 "594 275 647 489 524 1,293 43 3 38 99 168 557 716 661 2,4,17 676 1,069 1,452 391 683 532 1,332 587 1,675 1970 - I I III IV IV 1971 - I II 4,042 3,271 4,375 4,064 116 507 2,116 384 1,419 1,267 1,135 633 2,148 255 47 491 588 588 52 2,282 1,332 760 712 1,206 1,055 64 537 2,196 197 529 1,331 721 500 __25_Q_ 1,400 300 800 485 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. Apr. May June July 1 10^468 8,560 11,938 12,190 11,688 1,606 273 405 218 1,622 350 1,367 1,489 1,897 1,192 1.215 TABLE 6: Large Long-term Public Security Issues for New Capital , (Other than U.S. Treasury)1 Sept. 1 thru Sept. 24. 1971 ISSHKR TYPE 2 AMOUNT (MILLIONS OF DOLLARS) COUPON RATI-! OR MATURITY N I; I I:,TI'R- i-'.sr COST OFFERING MOODY 1 :> R A T INC Y I KI.N Corporate Vepco Kentucky Utilities Co Chrysler Finance Corp ) Joseph E. Seagram & Son Vepco Tidewater Marine Service Colwell Mtg Trst. Public Serv Co. of N. Mexico Median Mortgage Investors San Diego Gas & Elec Co. Cincinnati Gas & Elec Co Southwestern Bell Tel Southwestern Bell Tel Central Illinois Pub Service Co Hall Craft Homes Inc. Central Tel Co. Iowa Pub Service Co Tucson Gas & Elec Central Illinois Light Co. Mobil Oil Corp Essex International Inc. Barnett Mtg Tr Lincoln First Bank Inc. Vermont Yankee Nuclear Pwr Corp Centrex Corp National Kinney Corp Pub Serv Elec & Gas Co Gen'1 Tele & Elec Corp 50.0 1st mtg 35.0 1st mtg 60.0 debs 50.0 debs 80.0 Com stk debs 15.0 debs 15.0 20.0 1st mtg 20.0 debs 45.0 bonds 36.5 com stk 125.0 debs 75.0 notes 22.5 1st mtg conv debs 15.0 25.0 1st mtg 15.0 1st mtg 25.0 1st mtg 30.0 1st mtg 200.0 debs 50.0 debs Conv debs 20.0 Debs 35.0 15.0 Bonds 30.5 Com stk 44.3 Com stk 86.0 Com stk Sub conv deb 150.0 2001 7.50 7.47 -- 2001 7.62 7.45 Aa 1991 8.35 8.35 — 1996 7.75 7.75 A - "'-f- - — 5.75 5.75 6.50 — 2001 8.13 8.15 A - 1991 1991 • — Ba 1981 7.00 7.00 — 2001 8.00 7.96 Aa 2009 7.75 7.82 Aaa Aaa Aa — 7.06 2001 7.88 7.75 1996 5.75 5.75 -- 1996 8.00 8.00 8.05 8.13 7.85 7.38 5.38 6.75 8.50 8.37 Aa A A Aa ' Aaa Ba 2001 2001 2001 2001 1996 1991 1996 1998 8.13 7.88 7.38 5.38 6.75 8.50 8.50 - 6.95 1978 — — -- -- -- -- -- — -- 1996 6.20 6.20 --- A — Ba TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 Sept. 1 thru Sept. 24, 1971 TYPE2 ISSUER AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST OFFERING YIELD MOODY 1 S RATING Corporate (continued) Baltimore Gas & Elec Co Baltimore Gas & Elec Co Wickes Corp Allied Chemical Corp Bank of California Southern California Edison Columbia Gas System Inc Gen'l Motores Accept Corp Union Elec Co General American Trans Corp General American Trans Corp; \ 50. 0 Cum pref Cum pref 50. 0 58. 5 Com stk 100. 0 Debs Conv debs 20. 0 1st ref 100. 0 mtg 60,,0 Debs 200.,0 Debs 1st mtg 60,.0 S.F. ctfs 37,,5 Equip trst ctfs 12 .5 -— ' - - -- •- - -- -- — •- 1996 1996 7. 88 6. 50 7. 94 6. 50 A 1996 1996 1994 2001 1992 8., 00 8..25 7,,75 8,.13 8,.10 7. 95 8.,20 7.,82 8..00 8,.10 Aa A 1972 ' — Aa A 6 .00-7.45 A '.i \ \ / N TABLE 6: Large Long-term Public Security lssues r for New Capital (Other than U.S. Treasury) 1 • ISSUER TYPE2 AMOUNT (MILLIONS OF DOLLARS) MATURITY . Sept 1 thru Sept 24, 1971 COUPON RATE OR NET INTEREST COST OFFERING YIELD MOODY'S RATING State and Local Puerto Rico Aqueducts & Swr Auth Puerto Rico Aqueducts & Swr Auth Middlesex Co. N.J. Onondaga Co., N. Y. New Jersey, State of California, State of Arlington Co., Va Mississippi, State of Chatam Co., Dev Auth., Ga Brookline, Mass., Co. Norfolk Port & Industrial Auth New York State Pwr Auth New York State Pwr Auth Massachusetts Health & Ed Fac. Massachusetts Health & Ed Fac. Massachusetts Health & Ed Fac. Baltimore Co. Honolulu, Hawaii Pittsburgh Georgia Education Auth Port of Tacoma, Wash Rev bonds 11.0 Bonds 16.0 Bonds 12.3 12.9 G.O. 75.0 G.O. 100.0 G.O. 20.0 G.O. 20.0 G.O. 11.0 G.O. 10.2 G.O. 26.5 Rev. Rev. r 98.0 22.0 Rev. Rev. 1.8 Rev. 5.4 Rev. 3.8 30.0 G.O. G.O. 30.0 30.0 15.0 G.O. Rev. 15.7 Rev. 15.8 1973-1997 2004 1972-1988 1972-2001 1975-2001 1972-1991 1973-1992 1977-1991 6.01 6.01 4.66 4.46 4.61 4.89 1972-1985 1977-1998 6.80 2010 5.88 1986-1995 5.88 1993 6.13 1975-1988 6.19 2004 . 6.38 1973-2001 5.06 1974-1996 5.31 1972-1996 5.16 1973-1995 5.05 1973-1994 5.77 . 3.40-5.90 6.10 . 3.00-5.00 2.75-5.00 3.40-5.40 2.85.5.10 3.30-5.60 3.75-5.04 A A Aa Aaa Aaa Aa A-l 3.10-4.70 5.20-7.20 5.88 :5.10-5.60 6.13 4.10-5.75 i 6.38 3.40-5.25&5.60 3.70-5.60&5.90 3.20-5.40 3.30-5.40 3.70-6.00 Aaa Baa —— -- — A A-l Aa A TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 Sept 1 thru Sept 24, 1971 TYPE2 ISSUER AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON 1 RATE OR ! OFFERNET INTER- j \ ii.c EST COST J YIELD MOODY'S RATING State and Local Other Notes Notes Conv cap deb Debs. Debs Farmers Home Admin Farmers Home Admin F.N.M.A. Municipal Finance Auth of British Col Quebec Hydro-Elec Comm. \ . * 1 2 3 .• ' 300.0 149.9 1986 1976 7.50 6.63 7.50 6.63 250.0 21.0 75.0 1996 1996 2001 4.38 8.38 8.50 4.38 8.38 8.50 " Rights offering. Includes corporate and other security offerings of $15 million and over; State and local security offerings of $10 million and over. In case of State and local government securities, G.O. denotes general obligation; Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-utilities'; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by lease payments. . Includes foreign government and International Bank for Reconstruction and Development issues and non-quaranteed issues by Federal Agencies. m* — --— A A TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) Sept 2A, 1 9 7 1 APPROXIMATE DATE OF OFFERING Corporates Consolidated Natural Gas Cenco Instrument Corp Instrument Systems Corp Continental Can Co Genstar Ltd Valu Vend Credit Corp Cleveland Elec 111 Monumental Corp Beneficial Corp Beneficial Corp Microdot Inc. Central Telephone & Util Corp General Telephone Co of the SE Equimark Corp C&P Tele Co of Md. Westinghouse Credit Corp Tenneco Inc. Ohio Bell Telephone Co Gen'1 Tele Co of the SW Florida Pwr Co Pacific Pwr & Light Co Columbus, Ohio Terfi Industries Inc Carolina Telephone & Telegraph FMC Corp Combustion Engr. Inc. Detroit Edison Co Detroit Edison Co Pacific Lighting Service Co. Debs x Debs Debs Notes Debs Debs Com stk Notes Bonds Bonds Notes. 1st mtg Bonds Debs Debs SF debs 1st mtg Debs Bonds 1st mtg 1st mtg G.O. Conv deb Debs Debs SF debs com stk Gen'l & ref mtge Debs 25.0 30.0 25.0 60.0 25.0 25.0 50.0 20.0 25.0 50.0 20.0 20.0 40.0 15.0 100.0 40.0 100.0 150.0 40.0 50.0 35.0 11.8 25.0 20.0 75.0 50.0 60.0 90.0 30.0 6 Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Nov. Nov. Dec. 30 5 5 6" 12 12 18 4 4 13 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) As of Sept. 24, 1971 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING State and Local Atlanta, Ga Tennessee, State of Penna, State of New York, New York Birmingham, Ala Beaumont, Texas Westchester Co. N.Y. Durham Co., N.C. HUD Suffolk Co. N.Y. Taunton, Mass Maine Chicago Public Bldg. Comm, 111 Kentucky Turnpike, Auth. Buffalo, N.Y. Dallas, Indp S/D Orlando, Utilities Comm, Fla Montgomery Co., Md Sacramento MUD, Cal., Los Angeles Co. Flood Contr Dist, Calif Ohio, State of Guilford Co., N.C. Delmarva Pwr & Light Co 2 Rev. G.O. G.O. G.O. G.O. G.O. G.O. G.O. Bonds G.O. G.O. G.O. Rev. Rev. G.O. G.O. Rev. G.O. Rev. 32 .0 45 .0 50 .0 344 .9 18 .3 11 .0 35-.9 10 .7 258,.2 19 .0 10 .9 21,.8 25,.0 85,.0 19..5 17..5 33.,5 30. 0 50. 0 Sept. Sep. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. G.O. G.O. G.O. 1st mtg 19. 0 100. 0 10. 0 35. 0 Nov. Nov. Nov. Nov. 28 28 28 28 28 28 28 28 29 30 30 5 5 6 7 13 13 14 27 2 4. 9 Table 8 STOCK f R I C E S AND VOLUME STOCK PRICES1- H TRADING VOLUME 2 * DATE N Y S E INDEX 3 " AMEX * D J . INDUSTRIALS AMEX NYSE 1969 - High Low 50.32 (5/14) 49.31 (7/29) 968.85 (5/14) 32.91 (1/3) 769.93 (12/17 25.02 (7/29) 16.5 (3/29) 8.6 (8/29) 8.0 3.6 (1/31) (11/21) 1970 - High Low 52.36 (1/5) 37.69 (5/26) 842.00 (12/29 27.02 (1/8) 631.16 (5/26) 19.36 (5/27) 18.5 (12/4) 7.8 (8/14) 7.1 1.8 (1/2) (8/14) 1971 - High Low 57.76 (4/28) 48.73 (1/4) 950.82 (4/28) 26.68 (4/28) 830.57 (1/4) 22.72 (1/4) 22.1 (2/12) 11.0 (8/13) 6.7 2.7 (2/12) (8/13) 1971 - Aug. 6 13 20 27 52.07 52.88 54.38 55.52 850.61 856.02 880.91 908.15 24.37 24.59 25.13 25.27 12.5 11.0 21.1 15.3 3.0 2.7 5.1 3.5 Sept 3 10 17 24 55.66 55.56 55.24 54.26 912.75 911.00 908.22 889.31 25.61 25.66 25.59 25.35 11.4 14.6 10.8 12.2 3.1 3.3 3.2 2.8 NOTES: 1. Figures other than highs and lows are Fridays only. Highs and lows are for the year and are not necessarily for Fridays. 2. NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange. Volume figures are daily averaged for the entire week, (millions of shares). Trading is normally conducted for 5-1/2 hours per day and 5 days per week, or 27-1/2 hours per week. In recent years, however abbreviated trading to the extent, and over the time periods, shown below: Days/ Through: From Week Week January 3, 1969 July 7, 1969 January 2, 1970 July 3, 1969 December 31, 1969 May 1, 1970 3. 12/31/65 = 5 0 4. Average dollar value of shares listed. @ 4 4-1/2 5 5 " Jt 20 22-1/2 25 <•?. "g W 15 TABLE 9: Security Credit CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 | BANKS 2 j TOTAL END OF PERIOI CUSTOMERS' NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY FREE CREDIT BROKERS AND. DEALERS 3 BALANCES Outstanding:: 1970 July Aug. Sept. Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. •May June July Change in 3,800 3,810 .3,920 4,010 4,010 4,030 2,290 2,300 2,330 2,270 2,320 2,330 6,090 6,110 6,250 6,280 6,330 6,360 (4) (4) (4) (4) (4) (4) (5)2,180 2,083 2,236 2,163 2,197 . 2,286 (4) (4) (4) (4) (4) (4) 4,000 4,090 4,300 4,530 4,620 4,720 4,790 2,300 2,330 2,360 2,340 2,340 2,390 2,420 6,300 6,420 6,660 6,870 6,960 7,110 7,210 (4) (4) (4) (4) (4) (4) (4) 2,452 2,743 2,798 2,660 2,550 2,440 2,210 (4) (4) (4) (4) (4) (4) (4) 10 30 - 60 50 10 - 60 20 140 30 50 30 Outstanding 1970 July Aug. Sept. Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May June July 1 2 3 4 5 - 60 10 110 90 - - 20 - 30 90 210 230 90 100 - 70 - 30 30 30 - 20 50 30 - 60 120 240 210 90 150 100 — — — — — — - - - " - — — - — - - 171 97 153 -73 34 89. 166 291 55 -138 -110 110 230 " - - - - - - - - - - - - - - - - • ^ Margin debt, as reported by the New York Stock Exchange. Although margin debt until March 1968 included loans secured by U.S. governments, the amount of such loans included is thought to have been small. "Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments." • The difference between customers' net debit balances and customers'net free credit balances, this figure represents the net credit extended by brokers and dealers to the nonfinancial public. NOTE: With the exception of bank loan data, figures are supplied by the New York Stock Exchange and are end of month data. Bank loans are for weekly reporting large commercial banks. Broker data includes loans for regulated securities; bank data includes loans for the purpose of purchasing or carrying any security, whether regulated or not. Series discontinued. Changes in series. TABLE 10: Savings Flows at Nonbank Depositary Intermediaries ($ millions) DATE MUTUAL SAVINGS BANKS NET REGULAR DEPOSITS 3 NEW ANNUAL MONEY 2 GROWTH NET 1 FLOW RATE SAVINGS & LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL MONEY 2 NET GROWTH 1 FLOW RATE 4,203 2,549 4,466 TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW NET NEW ' MONEY 2 Not Seasonally Adjusted 7. 0 4. 0 6. 7 1,143 -763 936 7,432 4,200 11,173 -133 174 81 1,801 543 550 *— 3,092 1,531 1,100 *w 1970 - June July August 504 297 176 -- 1971 - June r/ July £/ August 2./ 935 416 300 -- > 1 2 3 •- -- 7 277 276 200: ' 6.0 3.2 8.2 2,738 -1,003 5,295 11,,635 6,,749 15 3,639 280 485 511 2,,305 840 726 1,275 1,438 4,,027 1= ,981 1,,400 --- —— 6.3 3.4 7.7 —— • — __ —— — 3 ,881 -1,766 1 6,231 147 659 592 1,552 1,714 n.a. Seasonally Adjusted —— —— - January 916 3,619 29.8 15,,5 4:,535 25.1 -—— 946 2,472 February 15,.8 19.8 3 ,418 18.5 -—— —— 3,376 March 1,287 21,.2 26.7 4 ,663 24.9 __ — — April 23.1 1,176 2,997 19,.0 4 ,173 21.8 —— ' — — ' May 2 795 12,.6 1,996 15.1 ,791 14.3 ---- • 2,152 June r/ 818 2 ,970 16.1 12,.9 15.1 --- ' -566 2,578 19.0 3 ,144 8,,8 July 2/ 15.8 —— —— 9-3 1,276 -August 2/ 425 1 ,701 8.4 6,,6 Annual growth rate for monthly data is the annualized monthly percentage increase in deposits. Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for insured associations only, which represent 967= of industry total resources. Regular deposits at mutual savings banks exclude items such as Christmas club and certain escrow accounts, which represent a very small part of total deposits. SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Bank Board. TABLE 11: Mortgage Commitments at Selected Thrift Institutions OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS SAVINGS & BANKS LOAN (N.Y. STATE) ASSOCIATIONS DATE 1 ___ TOTAL NET_ CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars,1 Seasonally Adjusted) 1/ 1970 - Aug. Sept. Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May r / June July 9.8 8.9 9.3 9.6 10.1 10.4 11.2 12.6 16.1 16.3 6.8 7.1 7.5X V 7.8 8.1 8.3 8.9 !:°8 .21 -.08 1.8 1.8 2.0 .25 .30 .35 .51 . -.07 \ .01 .23 2.1 .25 10.1 2.3 2.5 13.0 13.2 3.1 3.1 3.1 2.8 .80 1.36 1.30 1.56 .77 .24 -.11 .37 .34 .28 .20 .60 .05 1.01 .29 .34 .05 1.16 1.21 .72 .22 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. I .20 .20 .02 TABLE 12: Net Change in Mortgage Holdings DATE TOTAL INCLUDING FNMA-GNMA TOTAL 1 FINANCIAL INSTITUTIONS | LIFE MUTUAL SAVINGS &| SAVINGS COMMERCIAL LOAN I INSURANCE BANKS BANKS ASSOC. , COMPANIES 1 | Not Seasonally Adiusted 4,639 6,677 5,404 2,462 3,153 2,787 2,682 1,845 7,520 9,350 9,676 10,288 2,907 2,459 2,052 2,318 1,797 2,508 4,375 4,909 1,739 1,626 1,671 187 200 300 209 160 182 1,140 1,079 1,114 203 187 75 397 463 399 4,444 4,164 n.a. 4,311 3,848 n.a. 1,200 900 800 435 389 n.a. 2,693 2,511 2,372 -17 43 n.a. 133 316 n.a. 2,083 2,083 1,917 2,192 2,128 2,049 2,604 1,860 1,997 2,888 2,739 3,080 4,077 4,159 n.a. 1,575 1,575 1,509 1,828 1,808 1,820 2,504 1,893 2,084 2,896 2,818 3,073 3,872 3,798 n.a. 213 83 151 200 131 232 24 97 154 38 25 23 72 n.a. 508 408 364 320 229 100 -33 -87 -8 -79 7 205 361 n.a. 20,016 23,781 24,189 21,822 18,219 21,273 19,814 16,913 1970 - June July Aug. 2,136 2,089 2,070 1971 - June July Aug 1970 - July 1970 - July Aug. Sept. Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May June July Aug .1967 1968 1969 1970 E / Seasonally Adiusted 1 165 268 328 295 224 312 383 345 588 453 640 1,097 869 772 142 175 245 138 176 250 175 217 380 283 313 413 373 n.a. 1,055 983 1,104 1,175 J- ,289 1,710 1,311 1,425 1,774 2,044 2,095 2,339 2,484 2,239 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 1967. 19 TABLE 13: Net Increases in Mortgage Debt Outstanding 1 Billions of dollars, SAAR QUARTER TOTAL RESIDENTIAL 3 1- to 4; FAMILY MULT I FAMILY MULTI-AND COMMERCIAL COMMERCIAL FARM 2.2 1.8 1.8 1.8 2.5 2.8 II IV 18.6 15.1 10.9 9.1 8.3 7.0 2.6 2.1 5.5 4.1 8. 1 6. 2 I II III IV 15.9 20.7 26.6 27.3 10.3 13.9 19.2 19.8 7.0 10.5 15.3 16.0 3.3 3.4 3.9 3.8 3.9 5.0 4.9 4.8 7., 2 8. 3 8. 8 8.. 6 I II III IV 27.7 26.2 26.0 29.6 19.0 18.2 17.7 20.2 15.8 15.0 14.1 16.4 3.1 3.2 3.4 3.8 6.4 5.9 6.5 7.5 9. 6 9. 0 10. 1 11. 3 2.3 2.2 1.8 1.8 I II III IV 31.3 28.9 26.5 25.1 25.0 21.5 19.3 18.3 18.6 16.8 14.6 13.0 4.4 4.7 4.7 5.3 6.2 5.2 5.3 5.4 10..6 9. 9 io. i 10. 7 2.2 2.2< 1-8 1.4 I II III IV 20.2 22.8 28.6 30. 6 13.8 16.9 21.2 21.5 8.8 11.5 14.9 15.1 5.0 5.4 6.3 6.4 4.9 4.3 5.2 6.9 9. 9 9. 7 11. 5 13. 4 1.5 1.5 2.1 2.1 Ip Hp 32.9 48.0 22.6 37.0 15.6 27.8 7.0 9.2 8.3 9.2 15.3 18. 4 2.0 1.7 ' ; 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 fromrelated flow of funds series mainly because of more aggregative type of seasonal adjustment. _ 3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family and multifamily mortgage debt combined. / ! TABLE 14: T N M A "Auction" Results COMMITMENTS IN $ MILLIONS IMPLICIT YIELD 2 (per cent) ACCEPTED TOTAL 901-YEAR'1 TOTAL 901-YEAR 1 66OFFERED & OVER DAY MONTH & OVER DAY MONTH WEEK ENDED Apr. 12 26 126.9 687.2 54.5 313.9 39.8 154.0 9.4 126.6 5.4 33.4 7.32 7.43 7.45 7.54 7.53 7.57 May 10 24 1,168.0 785.7 236.8 151.6 145.8 44.6 71.3 84.4 19.7 22.6 7.57 7.95 7.68 7.97 7.74 8.03 June 1 14 28 322.4 664.4 539.3 146.6 191.2 262.2 77.1 133.7 191.8 57.8 47.3 60.3 11.6 10.2 10.4 8.05 7.91 7.92 8.18 8.15 8.22 8.16 8.22 8.28 July 12 26 606.0 686.2 241.1 183.4 161.8 183.4 58.2 21.1 7.98 8.07 8.23 Aug. 25 634.6 153.5 153.5 -- -- 7.97 — -- Sept. 7 445.2 188.6 188.6 — 7.88 -- — <, 8:31 Note: Under the FNMA auction system, approved sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments. Bids accepted by FNMA are for delivery at the seller's option, and at any time within the specified period. Bids on proposed homes relate to construction not yet started on which mortgages may be delivered only after completion and occupancy. 1 For "proposed construction" of new homes only. rage secondary market yield after allowance for commitment fee and required purchase and holding of FNMA stock, assuming prepayment of 15 years for 30-year Government-underwritten mortgages. Yields shown are gross, before deduction of 38 basis points fee paid by investors to servicers. " T A B L E 15: Private Housing Starts and Permits STARTS VNADJUSTED OF FINANCING FHA VA ' OTHER II DATE SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 12 OR MORE TOTAL . I 1970 - June July Aug. Sept. Oct. Nov. Dec. ,1,393 ,1,603 1,425 1,509 1,583 1,693 2,054 835 827 838 881 890 934 1,240 558 776 587 627 693 759 814 , !' ; 135.2 140.8 128.7 130.9 140.9 126.9 121-4 40.7 43.3 34.1 34.3 40.4 33.7 63.2 5.1 5.3 5.6 5.3 5.8 5.5 5.7 89.4 92.1 87.7 91.3 94.7 87.2 52.5 ' BLILDINf. FERMI'IS ^SEASONAL!.! ADJUSTED ANNUAL RATE) 2 1,285 1,309 1,378 1,388 1,523 1,487 1,768 1971 - Jan. 1,725 946 32.2 4.6 110.6 779 72.8 1,635 Feb. 1,754 985 ! 102.2 769 27.3 4.7 68.4 1,563 Mar. 1,048 1,959 33.4 6.9 911 167.9 127.6 1,627 814 Apr. 1,912 1,098 201.1 44.6 8.5 1,638 148.0 1,975 1,124 851 May i 198.5 40.7 8.4 1,927 149.4 823 2,000 1.177 • 193.8 June 46.1 9.3 137.8 1,849 July £ / 2,215 1,178 1,037 193.2 42.0 9.3 142.6 2,052 May j>/ |2,228 : 1,221 — 1,007 --1 201.4 2,008 1 Total starts are Census estimates including farm for both permit-issuing and now-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 include both units financed by conventional mortgages and units without mortgages. 2 Building permits are for 13,000, or all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per month, as well as other differences in timing and coverage. .22 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES DATE 30-year 2 CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON G0NV. & FHA MORT. GAGES 5 1 NEW Aaa CORPORATE BONDS 4 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS - AND FHA MORTGAGES 6 1968 - High Low 1969 - High Low 7.52 6.78 8.62 7.99 7.40 6.75 8.35 7.55 .02 -.27 -.13 -.40 6.79 6.15 8.75 6.91 1.20 .26 1.08 -.13 1970 - High Low 9.29 8.40 8.60 8.30 -.10 -.74 9.11 7.80 .99 .01 1971 - Jan. Feb. Mar. Apr. May June July Aug. -- 7.95 7.75 7.60 7.55 7.65 7.70 7.80 7.85 7.24 7.28 7.46 7.57 8.01 7.90 7.96 7.65 n.a. —— 7.32 7.37 7.75 7.89 7.97 7.92 n.a. .28 .18 -.10 -.19 -17 -.07 -.14 -.20 -.26 -.01 .01 .27 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 m the 2 Based"on FHA-fieId-office opinions about average bid prices in the private secondary market for new-home mortgages for immediate delivery. Data shown are for 30-year mortgaged with minimum downpayments, and weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 3 15 years for 30-year mortgages. Based on FHA-fi^ld-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office cities. 4 5 6 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. 23 TABLE 17: Conventional Mortgage Terms 1 DATE _ N E y HOMES CON- FEES & TRACT CHARGES EFFEC-I MATURITY RATE (PER TIVE : (YEARS) CENT) RATE : (PER CENT) 2 3 • LOAN/ PRICE ! LOAN RATIO AMT. (PER ($000) CENT) 4 EXISTING HOMES CON- FEES & LOAN / TRACT CHARGES EFFEC- MATU- PRICE (PER RATE TIVE RITY RATIO CENT) RATE (YEARS) (PER (PER CENT) CENT) 2 3 LOAN AMT. ($000) 4 1970 July Aug. Sept. Oct. Nov. Dec. 1971 Jan. Feb. Mar. Apr. MayJune July 8.32 8.35 8.31 8.33 8.26 8.20 1 .01 0 .98 1 .03 1 .05 0.99 1,.07 8 .49 8 .52 8 .48 8 .51 8 .43 8 .38 25.1 24.8 25.2 25.1 25.3 25.8 71.5 71.6 72.7 72.4 72.1 73.8 24.9 25.5 25.3 24.8 25.2 25.8 8.21 8.25 8.27 8.20 8.18 8.12 0.95 0; 89 0.88 0.88 0.85 0.85 8.37 8.41 8.42 8.35 8^.32 8/26 23.1 23 1 22.8 22.8 22.7 23.3 71 .5 71 .5 71 .7 71,.5 71 .5 71,.9 21.7 21.4 21.0 20.5 21.1 21.7 8.03 7.74 7.52 7.37 7.36 7.38 7.51 0..92 1..00 0..83 0..73 0. 71 0. 74 0.,88 8 .18 7 .91 7,.66 7,.49 .47 7 .50 25.8 26.2 25.9 26.3 26.1 26.3 26.2 73.3 73.9 73.7 73.6 74.0 73 . 7 74.3 26.4 26.2 26.0 26.2 26.7 27.2 27.1 7.94 7.67 7.47 7.34 7.33 7.3§ 7.50 0.82 0.79 0.77 0.75 0.71 0.74 0.73 8.08 7.80 7.60 7.47 7.45 7.50 23.5 24.0 24.1 24.2 24.0 24.3 72..5 73..1 73.,5 73. 6 73. 2 73. 9 22.0 22.5 23.0 23.1 23.3 28.3 7.62 24.2 74.4 23.3 7 .65 1 Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted opinions of field-office directors of the Federal Housing Administration, are available somewhat sooner than the results of the FHLBB-FDIC survey, and are included-i.n the case of new home mortgage rates--in Table 16. 2 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. 4 Derived by FRB.
@FedFRASER