Full text of H.16 Capital Market Developments : September 7, 1971
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CONFIDE;,"IP! a a m m m 15.1 C r f i ^ M f f H ) ( : t "Ttof^&r-•• • - . _ J ^ £ - O ~ — CAPITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. G S.ptMj.r • / I ?, 1971 — • INDEX Developments in the Corporate and Municipal Bond Markets Capital Market Yields Capital Market Volume Stock Market Mortgage Market SYMBOLS: Estimate Preliminary Revised Not available 3 TABLE 1: Yields, Volume and Reception W E E K ENDING: YIELDS MOODY'S SEASONED NEW ISSUE Aaa CORPORATE BOND MARKET VOLUME2 PER CENT SOLD BY END BONDS SCHEDULED GROSS OF WEEK WITHIN 28 DAYS OFFERINGS 6 13 <20 27 8.02 7.97 7.33 7.48 8.69 n * 7.71 7.51 7.50 247 194 239 383e Sept. 3 7.38 n. a. 7.45/ n. a. 413 1971 - Aug. 10 1971 " Aug. 6 13 20 21 Sept. 3 10 MOODY'S SEASONED Aaa 76 79 n.a. n.a. n.a. 54 n.a. n.a. n.a. MUNICIPAL BOND MARKET VOLUME7" YIELDS W E E K ENDING: 250e 100 100 BOND BUYER SEASONED 20 BOND INDEX 5.88 5.80 5.15 5.45 6.07 6.03 5.49 5.71 5.30 n.a. 5.39 n.a. GROSS OFFERINGS 203 570 232 415 474 319e PER CENT SOLD BY END OF WEEK 72 80 90 78 91 BONDS SCHEDULED WITHIN 28 DAYS 1,076 588 750 970 805 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 AMOUNT (MIL. $) ~ DATE" OFFERED 22.0 150.0 100.0 20.0 35.0 60.0 30.0 20.0 50.0 9/1 8/31 8/30 8/26 8/25 8/23 8/19 8/19 8/17 DATE OFFERED | "RELEXSED CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND YIELD CALL PROTECTION COUPON ISSUER 7.80 7.90 7.75 8.00 7.20 7.63 8.00 8.50 7.38 Gen. Port. Cement Consolidated Ed Florida P&L Hawaiian Tel Appal. Pwr Baltimore Gas & Elec Arkansas P & L Penn Elec Co Cinn. Bell Tel 7.80 7.90 7.60 7.90 7.20 7.52 7.80 8.35 7.40 A A Aa A A Aaa A Baa Aaa 10 5 5 5 5 5 5 5 5 ESTIMATED PROPORTION SOLD yrs yrs yrs yrs yrs yrs yrs yrs yrs 85% 30% 15% 98% 70% 75% 65% 98% 80% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER COUPON AMOUNT IN YIELD CALL PROT. PORTION RELEASED YIELD None INVENTORIES 1 1 MUNICIPALS BLUE LIST | IN SYNDICATE DATE 1971 - August Sept 6 13 20 27 3 551 533 495 58 6 r 600 CORPORATES IN SYNDICATE 115 168 32 105 0 0 58 32 67 240 N.C. - No call protection. V All figures in millions of dollars. Blue List is daily average for week ended Friday,except for FRASER which is daily average of three days ended Wednesday. All other figures arc as of Friday. Digitized for latest week TABLE 3: High Grade Bond Yields DATE NEW CORPORATE Aaa1 MOODY'S SEASONED CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 BOND BUYER'S SEASONED MUNICIPALS4 1969 - High Low 8.85 (12/5) 6.90 (2/21) 7.84 (12/26) 6.55 (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) 1971 - Aug. 13 20 27 7.97 7.33 7.48 7.71 7.51r 7.50 6.41 6.12 6.19 6.03 5.49 5.71 Sept. 3 7.38 7.45 6.06 5.39 •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 1 falls midway between the four top groups as classified by Moody's Investors Service. Note--Highs and lows are for individual series and m a y 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 PERIOD 1971 1 STATE A N D LOCAL 2 1970 1969 1970 1969 January February March 3,115 3,000 6,075 2,636 1,802 3,539 2,075 2,045 2,098 2,705 1,839 2,144 1,340 1,214 1,555 1,262 987 538 April May June 4,007 3,174 4,100e 3,170 3,909 3,389 2,748 2,076 2,530 1,907 2,135 2,008 1,647 996 1,085 1,801 1,110 737 July August September 4,000e 2,768 2,274 3,518 2,478 1,427 2,427 1,8506 1,348 1,359 1,758 1,097 808 559 3,777 4,182 3,980 1,933 2,375 2,532 1,924 1,748 2,190 1,280 886 816 12,190 11,2816 7,977 10,468 8,560 11,939 6,218 7,354 6,332 6,840 6,688 6,050 4,109 3,728 4,465 5,862 2,787 3,648 2,464 2,982 23,471e 18,445 27,005 38,944 13,572 19,904 26,744 12,738 7,837 12,302 18,164 6,435 8,899 11,881 October November December 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 1971 Excluding finance companies 3 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year 1 2 3 6,170 7,037 . 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. j TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH TOTAL GROSS PROCEEDS BY TYPE OF ISSUE COMMON MEMO: AND BONDS ISSUES INCLUDED PUBLICLY PRIVATELY PFD. FOREIGN | CONVERTIBLE PLACED STOCK OFFERED 1970 - II 10,468 6,994 1,282 2,190 135 III IV 1971 - I II 8,560 11,938 12,190 11,688 5,987 7,827 8,369 6,546 914 1,421 1,516 1,758 1,659 2,690 2,306 3,384 83 226 84 215 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 1971 - Jan. Feb. Mar. 3,115 3,000 6,075 2,033 2,201 4,135 594 275 647 489 524 1,293 Apr. May June e/julv 4,042 3,2*1 4,375 4.000 2,116 2,148 2,282 1.250 1 710 GROSS PROCEEDS BY TYPE OF ISSUER MFG. PUBLIC UTILITY COMMUNICATIONS OTHER ISSUERS 1 287 737 824 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 1,606 896 3,048 2,663 4,020 3,594 4,753 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 43 3 38 99 168 557 716 661 2,417 676 1,069 1,452 391 683 532 507 1,419 116 384 1,267 1,135 633 491 47 255 588 789 760 1,332 52 1,206 1,055 712 500 2,250 II.a. 165 600 560 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 . 273 405 218 ' M 1 5 1 1,332 587 1,675 1,367 1,489 1,897 1 ,225 \ : TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 August 2 thru Sept, 3, 1971' ISSUER / TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST OFFERING YIELD MOODY'S RATING Corporate Gulf Life Holding Co. Pepsico Inc. Dayton Pwr & Light Co Dayton Pwr & Light Co Illinois Pwr Co Louisville Gas & Elec Co Indiana Bell Telephone Co Consumer Pwr Co Jersey Central Pwr & Light Co Kansas-Nebraska Nat. Gas Co Duke Pwr Co First at Orlando Corp Weyerhaeuser Co City Investing Co Arkansas Elec Co Arkansas Pwr & Lt Co Penri Elec Co First Penna Mtg Trst Cincinnati Bell Inc Hospital Inv Public Service Elec & Gas Co CMI Investment Corp Tesoro Petroleum Corp Debs Debs 1st mtg Pref stk Pref stk 1st mtg Debs 1st mtg 1st mtg S.F. debs Cum pref stk Debs . Conv pref stk Sub debs 1st mtg Pfd stk Debs Conv debs Debs Benf int Debs Com stk Com stk 25.0 50.0 45.0 20.0 30.1 100.0 100.0 120.0 25.0 15.0 60.0 15.0 100.0 50.0 30.0 15.0 20.0 30.0 50.0 25.0 75.0 29.0 28.1 1991 1996 2001 5.50 4.75 8.13 5.50 4.75 8.15 Baa A — tmmm —— — «# —— —1 *» *— *» mm 2001 2011 2001 1996 1991 8.20 8.13 8.13 9.13 8.45 8.10 8.20 8.13 8.92 8.45 Aaa Aa Aaa Baa A ' w mm 8.20 5.75 8.20 5.75 —— -- -- 1996 — 1991 2001 -- 8.00 8.00 -«• 8.00 7.80 A 8.50" 6.75 7.38 8.35 6.75 7.40 Baa 7.75 A —— 1996 1991 2011 -- - 1996 —— __ Aaa -- 7.75 . TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) 1 Aug 2 through Sept 3, 1971 ISSUER American Gen'l Bond Fund Pelto Oil Co Zayre Corp Appalachian Pwr Co TYPE2 Consolidated Edison Co Florida Pwr & Light Co J.C. Penney Financial Corp Com stk Com stk S.F. debs Cum pref stk 1st mtg 1st mtg Debs Notes Sr debs 1st mtg Com stk Debs Com stk Cum pref stk 1st mtg 1st mtg Debs Girard Trst Bk Notes Appalachian Pwr Co Baltimore Gas & Elec Co Southern Bell & Tele Co Southern Bell & Tele Co G A C properties Credit Inc. Hawaiian Tele Co A M F A C , Inc. Gen'l Portland Cement Co National Liberty Corp Delmarva Pwr & Light Co AMOUNT (MILLIONS OF DOLLARS) 132.5 31.3 25.0 30.0 35.0 60.0 100.0 75.0 50.0 20.0 38.7 22.0 18.3 \ MATURITY 8.00 8.00 1979 2001 2008 1978 1977 2001 7.20 7.63 7.60 7.00 11.00 8.00 7.20 7.52 7.60 6.90 11.00 7.90 1996 7.80 7.80 — 2001 2001 1991 40.0 1979 V OFFERING YIELD 1996 20.1 150.0 100.0 75.0 - COUPON RATE OR NET INTEREST COST -- —* —— 7.90 • 7.75 7.88 7.13 MOODY'S RATING Baa . A Aaa Aaa Aaa ' A A • —— ## — 7.90 7.60 7.93 7.13 —— A Aa —— TABLE 6: Large Long-term Public Security Issues for New Capital (Ottfer than U.S. Treasury) 1 August 1 through Sept. 3 TYPE2 ISSUER AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST OFFERING YIELD MOODY'S RATING State and Local 26.5 G.O. Houston, Texas 26.9 Rev. New York State Dorm Authority ' 19.5 Rev. Los Angeles D W A P 19.5 Rev. L o s Angeles DWAP Greater Anchorage Area Borough 10.0 G.O. Alaska 70.0 G.O. Albany Co., N. Y . 29.0 G.O. M e m p h i s , Tenn. 22.9 Detroit City Sch Dist G.O. 15.0 G.O. Cleveland, Ohio 12.0 Rev. East B a y M U D , Calif. 12.0 G.O. East B a y MUD, CAL 100.0 . G.O. Connecticut 92.6 • Rev. Louisiana Stadium Exp Dist. 20.4 Rev. Louisiana Stadium Exp Dist. 25.0 Rev. Texas Wtr Dev 13.6 Sacramento Comm Center Auth, Calif Rev. 5.5 Sacramento C o m m Center Auth, Calif Rev. Maryland-National Capital Park & 11.5 G.O. Planning Comm. Cornell Twnship, Mich 6.2 G.O. Cornell Twnship, M i c h G.O. 5.5 New York St Housing Finance Agency Bonds 127.0 T u l s a , Okla 16.0 G.O. Baton Rouge, La 30.0 G.O. Washoe Co. S/D, Ohio Rev • 10.0 Virginia Pub Sch Auth 13.0 G.O. 26.0 G.O. Ind Trans -Thoroughfare Autly, Inc. 30.0 G.O. forWisconsin FRASER 5.0 LM sconsin G.O Digitized I I I 1 1972-1991 1974-2003 1977-1996 2011 5.32 6.83 5.90 5.90 3.40-6.00 4.50-6.90 4.50-5.80 6.00 Aa 1973-1991 1972-1995 1973-1999 1972-1981 1972-1991 1972-1991 1972-1991 1972-1991 1983 1975-1982 1972-1986 2006 1975-1991 6.76 5.99 5.80 5.75 5.98 . 5.26 5.26 5.30 6.00 6.00 4.95 6.22 6.22 4.75-7.10 3.70-6.30 3.60-6.10 4.00-6.00 3.70-6.40 3.40-5.95 3.40-5.95 3.30-5.75 5.94 4.20-5.40 3.30-5.30 6.00 4.25-6.00 Baa A Aa Baa A Aa Aa Aaa A A Aaa A A 1972-1996 5.48 3.60-6.10 1976-1987 1996 —— 6.75 4.75-6.30 6.75 1972-2013 1973-1996 1972-1981 1974-1988 1973-1992 1973-1993 1972-1991 2001 6.43 4.78 4.49 5.77 4.98 5.05 4.87 5.28 3.50-6.40 3.10-5.40 3.40-4.50 4.00-5.90 3.30-6.00 3.20-5.20 3.00-5.20 3.00-5.40 -- Aa Aa A A A Baa A Aa Aaa Aa Aa T A B L E 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury) 1 AMOUNT (MILLIONS i ISSUER State and Local D a l l a s - F t . W o r t h Resg A r p t , T e x Dallas-Ft. Worth Reg Arpt, Tex Ohio, State Connecticut M t g e Auth S o u t h C a r o l i n a Pub S e r v A u t h South Carolina Pub Serv N e w Y o r k , S t a t e of W a s h i n g t o n , S t a t e of W a s h i n g t o n , S t a t e of H a w a i i , S t a t e of Los Angeles, California S o u t h M i d d e s e x R e g V o c T e c h S / D NJ Other I n t ' l B k for R e c o n s t r & D e v A l b e r t a G o v ' t T e l Coram F.N;M.A. F.N.M.A. F.N.M.A. Province of New Brunswick TYPE 2 OF DOLLARS) MATURITY COUPON RATE OR N E T INTEREST COST 1 ! i | OFFERINC YIELD Rev. 85.0 Rev 15.0 100.0 G.O. 26.2 Bds E l e c R e v 77.2 22.8 Rev 94.0 G.O. Rev 34.0 u 30.1 G.O. 55.0 G.O. 20.0 G.O. 12.0 G.O. 2001 1979-1986 1976-1991 1973-2011 2010 1976-1991 1972-2001 1972-1996 1972-1991 1974-1991 1972-1991 1972-1986 Bonds Debs Debs Debs Debs S.F. debs 1996 1996 1981 1977 1974 •8.13 7.88 7.20 6.87 . 6.45 8.13 7.90 7.20 6.87 6.45 1996 8.20 8.25 175.0 25.0 250.0 300.0 450.0 25.0 • 6.78 6.78 5.07 5.93 4.72 5.55 4.83 4.91 4.63 —- MOODY'S RATING 6.75 5.30-6.40 4.00*5.45 3.50=6.08 6.34 4.30-5.90 3.00-5.75 3.30=5.85 3.00-5.00 3.50-5.40 3.00-4.90 3.30-5.40 Aaa Baa Aaa -- A A Aa A Aa A Aa —— Aa . ; -- . ' Rights oftaring. I n c l u d e s c o r p o r a t e and other security offerings of $15 m i l l i o n and over; State and local security o f f e r i n g s of $10 m i l l i o n and over. In c a s e of S t a t e and local government s e c u r i t i e s , G . O . d e n o t e s general o b l i g a t i o n ; •Xev.-Ut., revenue o b l i g a t i o n s secured only by i n c o m e from public utilities; R e v . - Q . - U t . , revenue b o n d s secured only by income from q u a s i - u t i l i t i e s ; Rev.-S.T.', r e v e n u e b o n d s secured by revenue from specific t a x e s only; R e v . - R e n t . , revenue b o n d s secured solely b y lease p a y m e n t s . I n c l u d e s foreign government and International B a n k for R e c o n s t r u c t i o n and Development issues and non-guaranteed issues by F e d e r a l A g e n c i e s . ( TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury) 1 (continued) As o f S e p t e m b e r 3> ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) 1 9 7 1 APPROXIMATE DATE OF OFFERING Corporate Florida Gas Co Conv debs Cenco Instrument Corp Debs Kentucky Utilities Co 1st mtg Tidewater Marine Service, Inc Debs VEPCO Com stK 1st mtg VEPCO ^ Debs Hall Craft Homes Inc. Joseph E. Seagram & Son Debs Central Illinois Pub Serv Co 1st mtg Chrysler Financial Corp Debs Debs ~ Southwestern Bell Tel 1st mtg Iowa Public Service 1st mtg Central Tel Co Bonds Central Illinois Light Co Debs Lincoln First Bank Inc Debs Mobil Oil Corp; 1st mtg Tucson Gas ^ f E l e c 1st mtg Public Service Co of N. M e x i c o Bonds San Diego Gas & Elec Co 1st ref mtg Southern Calif Edison Debs Columbia Gas System Inc Bonds Union Elec Co Debs Consolidated Natural Gas Conv debs Bank of California -Debs Instrument Systems Corp Notes Continental Can Co Debs Genstar Ltd Debs Valu Vend Credit Corp Com stk Cleveland Elec 111 Notes Monumental Corp Bonds Beneficial Corp .Bonds Beneficial Corp Notes Microdot Inc 1st mtg Central Tel & Utility Corp Conv debs Barnett Mtg Trst Bonds General Tel Co of the S.E. Debs Equimark Corp Debs i Colwell Mtg Trst Debs C & P Tel Co of Maryland Equip trst ctfs General A m e r i c a n Trans Corp Debs Carolina Tel & Tel 25.0 30.0 35.0 15.0 80.0 50.0 15.0 50.0 22.5 60.0 200.0 15.0 25.0 30.0 35.0 200.0 25.0 20.0 45.0 100.0 60.0 60.0 25.0 20.0 25.0 60.0 25.0 25.0 50.0 20.0 25.0 50.0 20.0 20.0 20.0 40.0 15.0 15.0 100.0 50.0 20.0 / ~ 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 September October 6 6 7 8 8 8 8 9 13 13 14 14 14 15 15 15 15 16 16 20 22 22 30 — TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital <0th»r than U.S. Treasury)' ISSUER AMOUNT (MILLIONS OF DOLLARS) TYPE As o f Sept 3 , 1971 APPROXIMATE DATE OF OFFERING State & Local New Jersey, State of California, State of Arlington Co., Va Middlesex Co. N . J . Hierto Rico Aqueduct Swr jfcutk Mass Health & Ed Facil Aut i New York State pwr Auth Norfolk Port & Industrial Auth Brookline, Mass., Co Mississippi, State of Pittsburgh S/D, P. A. Port of Tacoma, Wash Kentucky Turnpike, Auth Buffalo, N.Y. G.O. G.O. G.O. Bonds Rev. Bonds Rev. Rev. GkO. G.O. G.O. Rev. Rev. G.O. - 75.0 100.0 20.0 12.3 27.0 11.0 100.0 Sept. Sept. Sept. Sept. Sept. Sept. Sept. 8 8 8 9 9 14 14 26.5 10.0 20.0 15.0 15.7 85.0 19.5 Sept. Sept. Sept. Sept. Sept. Oct. Oct. 15 15 16 21 23 6 7 45.0 300.0 258.2- Sept. Sept. Sept. 1. 10 29 Other The Guam Economic Dev Auth Farmers Home Admin HUD * 1 2 Rev Notes Bonds / - . . Included in table for first time. Includes corporate and other issues of $15 million and over; State and local Government issues of $10 million and over. Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. u Table 8 STOCK PRICES AND VOLUME TRADING VOLUME 2 ' STOCK PRICES1DATE NYSE INDEX 3 - D J . INDUSTRIALS AMEX NYSE AMEX * 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) 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 3 55.66 912.75 25.61 11.4 3.1 1971 - Aug. 6 13 20 27 Sept 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 In recent years, however abbreviated trading to the extent, and over the time Days / Through: From Week 0*? January 3, 1969 July 7, 1969 January 2, 1970 July 3, 1969 December 31, 1969 May 1, 1970 3. 12/31/65 = 50 4. Average dollar value of shares listed. 4 4-1/2 5 5 5 5 27-1/2 hours per week. periods, shown below: Hours/ Week 20 22-1/2 25 15 TABLE 9: Security Credit CREDIT EXTENDED TO MARGIN CUSTOMERS B Y : BROKERS 1 I BANKS 2 I TOTAL END OF PERIOD 1970 3,800 July Aug. 3,810 Sept. .3,920 Oct. .4,010 Nov. 4,010 Dec. .4,030 .1971 - Jan. Feb. •Mar. Apr. -May June July ,4,000 4,090 4,300 4,530 4,620 4,720 4,790 CUSTOMERS' N E T DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED BY FREE CREDIT BROKERS A N D DEALERS 3 BALANCES 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) 2 ,300 2,,330 2,,360 2 j,340 21,340 ,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 (4) (4) (4) (4) (4) (4) 2 - Change in 2,660 2,550 2,440 2,210 (4) Outstanding 1970 July Aug. Sept. Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May June July - 60 10 110 90 - - - 20 - 30 90 210 230 90 100 70 - 10 30 60 50 10 - 30 30 30 20 - - 50 30 - 60 20 140 30 50 30 171 97 153 - 73 34 89 - 60 120 240 210 90 150 100 166 291 55 -138 -110 110 230 Margin debt, as reported by the N e w 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' GROWTH NET RATE 1 FLOW SAVINGS & LOAN ASSOCIATIONS NET SHARE CAPITAL NEW ANNUAL MONEY: GROWTH NET FLOW RATE 1 TOTAL DEPOSITS ANNUAL NET GROWTH FLOW RATE 1 NET NEW MONEY? Not Seasonally Adjusted 1968 1969 1970 4,203 2,549 4,466 7.0 4.0 6.7 1,143 -763 936 7,432 4,200 11,173 1,801 1970 - May June July 326 504 297 224 -133 174 1971 - M a y r/ June r/ July i ] 819 935 450 710 2Z7 6.0 3.2 8.2 2,738 -1,003 5,295 11,635 6,749 15,639 705 1,079 2,305 840 929 147 659 2,979 4,027 2,791 1,552 n.a. 753 280 543 485 2,160 2,081 3,092 1,531 1,275 6.3 3.4 7.7 1,438 3,881 -1,766 6,231 Seasonally Adjusted 1971 - January February March April May r/ June r/ July ? / 916 946 1,287 1,176 795 818 600 15.5 15.8 21.2 19.0 12.6 12.9 9.4 3,619 2,472 3,376 2,997 1,996 2,152 2,578 29.8 19.8 26.7 23.1 15.1 16.1 19.0 4,535 3,418 4,663 4,173 2,791 2,970 3,178 25.1 18.5 24.9 21.8 14.3 15.1 15.9 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 96% 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 DATE TOTAL OUTSTANDING COMMITMENTS ALL MUTUAL SAVINGS SAVINGS & LOAN BANKS (N.Y. STATE) ASSOCIATIONS TOTAL 1 NET CHANGE ALL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS (N.Y. STATE) (Billions of Dollars, Seasonally Adjusted) 1/ 1970 - June July Aug. Sept. Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May r/ June 8.2 8.6 9.8 8.9 9.3 9.6 10.1 10.4 11.2 12.6 . 6.1 6.5 2.1 2.0 .17 .37 .26 .41 -.09 -.04 6.8 2,0 .21 .29 .36 .37 .34 -.08 7.1 7.5 7.8 1.8 1.8 2.0 .25 .30 .35 .51 8.3 8.9 2.1 .25 8.1 10.1 !i> 16.1 13.0 1.8 2.3 2.5 .80 2.8 1.36 1.30 3.1 3.1 1.56 .77 -.11 -.07 .28 .23 .20 .60 .05 1.01 1.21 .29 1.16 .72 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. .01 .20 .20 .34 .05 18 TABLE 12: Net Change in Mortgage Holdings 1 FINANCIAL INSTITUTIONS MUTUAL SAVINGS & SAVINGS COMMERCIAL LOAN BANKS ASSOC. BANKS LIFE INSURANCE COMPANIES TOTAL INCLUDING FNMA-GNMA TOTAL 20,016 23,781 24,189 21,822 18,219 21,273 19,814 16,913 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 1970 - M a y June July 1,548 2,136 2,089 1,170 1,739 1,626 125 187 200 144 209 160 723 1,140 1,079 178 203 187 378 397 463 1971 - M a y June July 3,154 3,204 4,311r n.a. 700 1,200 900 303 435 389 2,185 2,693 2,479 16 -17 789 1,055 983 1,104 1,175 1,289 1,710 1,311 1,425 1,774 2,044 2,095 2,339 2,452 222 213 83 151 200 131 232 24 97 154 38 25 23 DATE FNMA-GNMA Not Seasonally Adlusted 1967 1968 1969 1970 & / \ " 5 0 Seasonally Adiusted June July Aug. Sept. Oct. Nov. Dec. 1971 - Jan. Feb. Mar. Apr. May June July 1,749 2,083 1,917 2,192 2,128 2,049 2,604 1,860 1,997 2,888 2,739 1,281 1,575 1,509 1,828 1,808 1,820 2,504 1,893 2,084 2,896 2,818 81 165 268 328 295 224 312 383 345 588 453 3,080 3,073 3,872 640 1,097 869 n.a. 189 142 175 245 138 176 250 175 217 380 283 313 4l3r 373 468 508 408 364 320 229 100 -33 -87 -8 -79 7 n.a. n.a. Monthly data for commercial banks based on Federal Reserve estimates benchmarked to Call Report data on real estate loans outstanding as available. Other data derived from mortgage debt outstanding as reported separately by National Assn. of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual savings banks and for Life Insurance companies may differ somewhat from those derived from regular quarterly series because of minor conceptual differences for which adjustments are not made in the monthly series. Altogether, these groups accounted for 8 4 per cent of the net increase estimated for all holders in 1970. 19 TABLE 13: Net Increases in Mortgage Debt Outstanding 1 Billions of dollars, SAAR-QUARTER TOTAL RESIDENTIAL 3 1- to 4 FAMILY MULTIFAMILY COMMERCIAL MULTI-AND COMMERCIAL FARM 1966 - II IV 18.6 15.1 10.9 9.1 8.3 7.0 2.6 2.1 5.5 4,1 8.2 6.0 2,2 1.8 1967 - 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 7.3 8.4 8.8 8.4 1.8 1.8 2.5 2.8 1968 - 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 9.4 9.2 10.2 11.1 2.3 2.2 1.8 1.8 1969 - 1 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 6.2 5.2 2.2 2.2 s4:! 1:1 10.4 10.1 1970 - 1 II III IV 20.2 22.7 28.5 30.5 13.8 16.9 21.2 21.6 8.8 11.5 14.9 15.1 5.0 5.4 6.3 6.4 1971 32.9 22.6 15.6 7,0 - Ip io0:? 1:1 4.9 4.3 5.2 6.9 9.9 9.7 11.5 . 13.3 1.5 1.5 2.1 2,1 8.3 15.3 2.0 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 i n t e r p o l a t i o n and extrapolations, where required, estimated mainly by Federal Reserve. "May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. Residential mortgage debt includes nonfarm only and is sum of 1-to 4 - family and multifamily mortgage debt combined. TABLE 14: FNMA Weekly "Auction" Results WEEK ENDED Apr. 12 26 COMMITMENTS IN $ MILLIONS ACCEPTED 901-YEARH TOTAL TOTAL 6OFFERED MONTH & OVER DAY IMPLICIT YIELD 2 (per cent) 90DAY 6MONTH 1-YEAR & OVER 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 57.8 77.1 133.7 47.3 191.8 \ 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 28 606.0 689.0 241.1 183.3 161.8; 183.3 21.1 7.98 8.07 8.23 8.31 58.2 1 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. 2 Average 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. 21 TABLE 15: Private Housing Starts and Permits STARTS DATE UNADJUSTED TYPE OF FINANCING FHA | VA OTHER SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE 1970 - June July Aug. Sept. Oct. Nov. Dec. 1,393 1,603 1,425 1,509 1,583 1,693 2,054 1971 - Jan. Feb. Mar. Apr. May June July £ / 1,725 1,754 1,959 1,912 1,975 1,995 2,218 BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 890 934 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 1,285 1,309 1,378 1,388 1,523 1,487 1,768 946 985 1,048 1,098 1,124 1,174 1,177 779 769 911 814 851 821 1,041 110.6 102.2 32.2 27.3 33.4 44.6 40.7 46.1 42.0 4.6 4.7 6.9 8.5 8.4 9.3 9.3 72.8 68.4 127.6 148.0 149.4 137.8 142.6 1,635 1,563 1,627 1,638 1,927 1,849 2,072 835 827 838 881 167.9 201.1 198.5 193.2 193.9 Total starts are Census estimates including farm for both permit-issuing and nou-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. 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 w e l l as other differences in timing and coverage. 2? TABLE 16: Mortgage and Bond Yields FHA MORTGAGES DATE 30-year 2 CONVENTIONAL MORTGAGES 3 SPREAD BETWEEN YIELDS ON CONV. & FHA MORTGAGES 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 7.24 7.28 7.46 7.57 8.01 7.90 7.96 n.a. 1971 - Jan. Feb. Mar. Apr. May June July — —— 7.32 7.37 7.75 7.89 7.97 7.95 7.75 7.60 7.55 7.65 7.70 7.80 n.a. .28 .18 -.10 -.19 -17 -.14 -.20 -.26 -.01 .01 1 Neither mortgage nor bond yields include allowance for servicing costs which are much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to a semi-annual interest investment, would be slightly higher than given in the 2 Based*on FHA-field-office opinions about average bid prices in the private secondary market for new-home mortgages for immediate delivery. Data shown are for 30-year mortgages 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-field-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 F H A secondary market yield less new Aaa corporate bond yield. 23 TABLE 17: Conventional Mortgage Terms DATE NEW HOMES CON- FEES & TRACT CHARGES EFFEC- MATURITY (PER RATE (YEARS) TIVE CENT) RATE (PER CENT) 3 2 LOAN/ PRICE LOAN RATIO AMT. (PER ($000) CENT) 4 EXISTING HOMES CON- FEES & LOAN/ TRACT CHARGES EFFEC- MATU- PRICE (PER RATE TIVE RITY RATIO CENT) RATE (YEARS) (PER (PER CENT) CENT) 2 3 LOAN AMT. ($ooo; 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 7.47 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 7.38 7.50 0.82 0.79 0.77 0.75 0.71 0.74 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. ? 0 . 73 7.62 24.2 74.4 23. 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-in 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