Capital Market Developments · table 1 yields, volume and reception corporate bond market yields...

r r

Capital Market Developments

June 5, 1978

Prepared by the CAPITAL MARKETS SECTION in conjunction with the MORTGAGE and CONSUMER FINANCE SECTION

DIVISION OF RESEARCH AND STATISTICS

BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM • Washington, D C. 20551

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index

SUBSCRIPTION RATES: Weekly $15.00 per year or $.40 each in the United States, its possessions, Canada, and Mexico; 10 or more of the same issue to one address, $13.50 per year or $.35 each. Elsewhere, $20.00 per year or $.50 each. Address requests to Publications Services, Divi-sion 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 SECURITY VOLUME AND YIELDS 7, 8 STOCK MARKET AND SECURITY

CREDIT 9 - 1 6 MORTGAGE MARKET

SYMBOLS e ESTIMATE p PRELIMINARY r REVISED n.a. NOT AVAILABLE

DATA DO NOT EXIST


Table 1

YIELDS, VOLUME AND RECEPTION

CORPORATE BOND MARKET

YIELDS VOLUME WEEK ENDING NEW ISSUE 1 RECENTLY 2 GROSS 3 PER CENT NEW ISSUES 4

Aaa UTILITY OFFERED OFFERINGS SOLD BY END IN SYNDICATE Aaa UTILITY Aaa UTILITY ($ MILLIONS) OF WEEK ($ MILLIONS)

1978 - April 7 8.88 8.82 300 87 23 14 8 .88 8.84 558 98 10 21 8.93 8.84 813 82 145 28 8.92 8 .91 192 96 8

May 5 8.90 128 96 5 12 8.87 8.92 288 93 21 19 8.95 8.98 515 94 31 26 9.02r 9. lOr 647 94 41

June 2 9.07p 36 100 0

MUNICIPAL BOND MARKET YIELDS VOLUME

WEEK ENDING MOODY'S BOND BUYER GROSS 3 PER CENT NEW ISSUES 4

NEW ISSUE 2Q-BOND OFFERINGS SOLD BY END IN SYNDICATE Aaa INDEX ($ MILLIONS) OF WEEK ($ MILLIONS)

1978 - April 7 5 .40 5.76 346 84 189 14 5.40 5.74 785 91 186 21 5.40 5.79 739 89 185 28 5.45 5.89 1,264 88 248

May 5 5.45 5 .98 739 79 281 12 5.55 5.99 1,213 87 191 19 5.55 5.98 1,518 91 290 26 5.75 6.16 1,097 81 294

June 2 5.75 6.19 134 92 213

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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table 2

HIGH GRADE BOND YIELDS

DATE 1

NEW ISSUE Aaa UTILITY

2 RECENTLY OFFERED

Aaa UTILITY

3 MOODY'S SEASONED

CORPORATE Aaa

4 U.S. GOVT. 20-YEAR

CONSTANT MATURITY

5 BOND BUYER

2 0 - B 0 N D INDEX

1974 - High 10.61 (10/4) 10.52 (10/11) 9.39 (10/11) 8 .68 (8/30) 7.15 (12/12) Low 8.05 (2/15) 8 .13 (1 /4) 7.73 (1/4) 7.39 (1/4) 5 .15 (2 /7)

1975 - High 9.80 (5 /2) 9.71 (5/25) 9.01 (5/2) 8 .63 (9/19) 7.67 (10/3) Low 8.89 (2/7) 9.06 (2/28) 8.57 (2/28) 7.63 (2/21) 6.27 (2/13)

1976 - High 8.95 (5/28) 9.10 (1 /2) 8.66 (5/28) 8 .17 (5/28) 7.29 (1/2) Low 7.93 (12/10) 7.84 (12/31) 7.91 (12/31) 7.27 (12/31) 5.95 (12/16)

1977 - High 8 .36 (12/16) 8.48 (12/30) 8.28 (12/30) 7.99 (12/30) 5 .93 (2 /4) Low 7.90 (1/7) 7.95 (1/7) 7.88 (1/7) 7.26 (1/7) 5 .45 (11/17)

1978 - High 9.02 (5/26) 9.07 (6 /2) 8.79 (6/2) 8.50 (6/2) 6.19 (6 /1) Low 8.60 (3/24) 8 .48 (1 /6) 8 .30 (1/6) 8 .02 (1/6) 5 .58 (3/17)

1978 - Apr. 7 8 .88 8 .82 8.53 8 .31 5 .76 14 8.88 8.84 8.56 8 .33 5.74 21 8 .93 8.84 8.57 8 .35 5.79 28 8.92 8.91 8.59 8 .36 5.89

May 5 8.90 8.62 8.40 5.98 12 8.87 8.92 8.65 8 .44 5.99 19 8.95 8.98 8.69 8.44 5 .98 26 9.02r 9.10r 8. 76r 8.47r 6.16

June 2 — 9 .07 p 8. 79p 8.50p 6.19

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 OF DOLLARS

GROSS PROCEEDS PERIOD CORPORATE 1 STATE AND LOCAL 2 PERIOD

1978 3 19 7 7 1 1976 1 1978 J 1977 2 1976z

January 3,013 4,362 3,381 3,288 3,402 2,451 February 2,657 2,792 3,863 2,728 3,442 2,885 March 3,700e 5,578 6,632 4,538 4,063 3,365

April 3,300e 3,998 3,507 3,500e 3,409 2,218 May 3,200e 3,797 4,186 5,lOOe 4,566 3,575 June 5,660 6,439 5,786 3,115

July 4,289 3,216 3,113 2,734 August 3,469 3,357 4,118 2,821 September 4,177 4,817 4,013 2,814

October 4,221 4,511 3,807 3,524 November 5,331 3,074 3,332 3,336 December 6,531 6,503 3,646 2,342

Q1 9,370e 12,732 13,876 10,554 10,907 8,701 02 13,455 14,132 13,761 8,908 0 3 11,935 11,390 11,244 8,369 0 4 16,083 14,088 10,785 9,202

1st Half 26,187 28,008 24,668 17,609 3 Qtrs. 38,122 39,398 35,912 25,978 Year 54,205 53,488 46,697 35,180

NOTES: 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts. 3 Estimated by Federal Reserve on the bas i s of avai lable data. Digitized for FRASER

http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table 4

NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER

IN MILLIONS OF DOLLARS

Ox

PERIOD

GROSS PROCEEDS BY TYPE OF ISSUE

TOTAL BONDS

PUBLICLY OFFERED

PRIVATELY PLACED

GROSS PROCEEDS BY TYPE OF ISSUER

COMMON MEMO MANUFAC-

TURING PUBLIC UTILITY

COMMUNI-CATIONS

OTHER ISSUERS AND

DDCCCDDCn ISSUES INCLUDED MANUFAC-TURING

PUBLIC UTILITY

COMMUNI-CATIONS

OTHER ISSUERS rntrtnnCU

STOCK FOREIGN CONVERTIBLE

MANUFAC-TURING

PUBLIC UTILITY

COMMUNI-CATIONS

OTHER ISSUERS

3,553 1,340 262 4,497 4,044 765 4,596 3,121 1,843 478 3,757 3,140 1,879 5,358 1,861 1,267 199 2,982 3,317 378 4,715 2,573 1,795 55 4,259 3,917 541 5,369

2,707 858 6 3,031 3,047 1,415 5,238 2,874 1,810 108 3,440 4,125 1,059 4,830 2,214 1,560 495 3,250 2 ,901 644 5,140 4,217 1,025 39 4,054 4,246 1,320 6,460

602 300 0 1,129 989 50 2,194 910 433 6 757 470 557 1,006

1,195 125 0 1,145 1,588 808 2 ,038 591 600 50 1 ,381 984 334 1,298

1,248 350 2 643 1,670 309 1,176 1,035 850 56 1,416 1,471 41b 2,356

695 935 25 1,349 903 277 1 ,761 557 150 262 1,068 497 45 1,858 700 475 208 633 1 ,501 322 1,521

1,128 300 1 731 1,437 8 2,045 1,920 425 22 782 1,729 1,013 1,805 1,169 300 16 2,541 1,080 299 2,610

633 325 0 273 644 519 1,578 526 0 0 716 465 34 1,441

1976 -

1977 -

1977 -

I 13,876 7,569 2,754 II 14,132 7,427 3,584 I I I 11,390 4,904 4,624 IV 14,088 6,553 4,962

I 12,732 6,498 3,527 I I 13,455 5,606 4,975 I I I 11,935 6,215 3,506 IV 16,083 5,867 5,999

January 4,362 2,786 974 February 2,792 1,102 780 March 5,578 2,610 1,773 April 3,998 1,961 1,446 May 3,797 1,600 949 June 5,660 2,045 2,580 July 4,289 2,360 972 August 3,469 1,947 965 September 4,177 1,908 1,569 October 4,221 2,114 979 November 5,331 2 ,211 1,200 December 6,531 1,542 3,820

January 3,013 1,382 998 February 2,657 1,464 667

NOTES: 1 Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other.

Source: Securities and Exchange Commission.

* # # # # # * # # I Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

# e # # # # * * # #

Table SA

INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS

OTHER THAN U.S. TREASURY ' May 30 through June 2, 1978

ISSUER TYPE AMOUNT

(MILLIONS OF

DOLLARS)

MATURITY COUPON RATE OFFERING YIELD

MOODY'S/S&P'S RATINGS

CORPORATE

Crocker National Corp. Public Service of New Mexico Tyler Corp. Finland, Republic of

Com. s tk . Com. s t k . Debt. Bonds

50.0 31.2 30.0

100.0 2008 1983

8.75

10.50 8.75

8.75

10.50 8.90

A/ —

Ba/BB+ Aa/AAA

NOTES: * Rights offering. 1 Includes only corporate and other security offerings of $15 million and over; excludes options, exchanges, and secondary offerings.


1

00

Table 5B

INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS

OTHER THAN U.S. TREASURY ' May 30 through June 2, 1978

ISSUER TYPE AMOUNT

(MILLIONS OF DOLLARS)

MATURITY NET INTEREST COST

OFFERING YIELD

MOODY'S/S&P'S RATINGS

STATE AND LOCAL Portland, Ore. Chelan Co. Pub. U t i l . D l s t . , Wash. Chelan Co. Pub. U t i l . D i s t . , Wash.

Rev. Rev. Rev.

15.0 2 .0 8.0

1979-1998 1981-2006

2029

6.70 6 .77 6.77

4 .75-6 .70 4 .50-6.50

6.75

A/— —/A+ —/A+

NOTES: 1 Includes only state and local security offerings of $10 million and over; excludes secondary offerings. 2 For State and local government securities, G O. denotes general obligation; Rev. denotes revenue obligations.


Table 6A

FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS

OTHER THAN U.S. TREASURY As of June 2, 1978

1

ISSUER TYPE AMOUNT

(IN MILLIONS OF DOLLARS)

APPROXIMATE DATE OF OFFERING

CORPORATE

Detroit Edison Co. 1 s t . mtg. 70.0 June 6 Niagara Mohawk Power Com. s t k . 45.0 June 6

^Rainier Bancorp Com. s t k . 30.0 June 6 New Jersey Tele . Co. Deb t . 100.0 June 6 American Tel . & Tele . Co. Deb t . 100.0 June 6 P a c i f i c Gas & E l e c t r i c Co. 1st mtg. 200.0 June 7 Arizona Public Service Co. Com. s tk . 49.0 June 7 John Deere Credit Co. Debt. 75.0 June 7 Pennsylvania E l e c t r i c Co. 1st mtg. 60.0 June 13 Carolina Power & Light Co. 1st mtg. 100.0 June 14 Security P a c i f i c Corp. Notes 100.0 June 14 Central I l l i n o i s Public Service Com. s tk . 22.5 June 1 4 New York Tele. Co. Debt. 150.0 June 20 New York State E l e c t . & Gas Co. 1st mtg. 50.0 June 20 Chrysler Corp. Pfd. s t k . 150.0 June 21 Public Service E l e c t r i c & Gas Co. Com. s tk . 60.0 June 21 Delmarva Power & Light Co. 1st mtg. 50.0 June 22 Baltimore Gas & E l e c t r i c Co. 1st mtg. 75.0 June 27 Consumer Power Co. Pfd. s t k . 50.0 June 27 Lou i sv i l l e Gas & Elec. Co. Pfd. s t k . 25.0 June 27 Missouri P a c i f i c Railroad Co. Equip. t r . 15.9 June 29 H.H. Robertson Co. Notes 15.0 June

%Tiger International Inc. Com. Stk. 25.0 June Transcontinental Oil Co. Debt. 20.0 June Crystal Oil Co. Debt. 30.0 June Arrow Electronics Inc. Debt. 17.0 June Bango Punta Co. Conv. debt. 50.0 June Ticor Debt. 50.0 June Anglo Co. Debt. 20.0 June Prime Computer Inc. Debt. 15.0 Indef . United Il luminating Co. Com. s t k . 21.0 Indef Interpool Ltd. Pfd. s tk . 26.0 Indef . Texas Internat ional Co. Pfd. s t k . 15.0 Indef •

OTHER Caisse Centrale de Cooperation Economique Bonds 75.0 June 6

Ito-Yakado Co. Notes 20.0 June Ito-Yakado Co. Conv.-debt. 50.0 June

NOTES: * Included in table for first time. 1 Includes only corporate and other security issues of $15 million and over; excludes exchanges, options


10

Table 6B


OTHER THAN U.S. TREASURY 1

As of June 2, 1978

AMOUNT APPROXIMATE ISSUER TYPE (IN MILLIONS DATE OF OFFERING ISSUER

OF DOLLARS)

STATE & LOCAL Tucson, A r i z . W. Lake S u p e r i o r S a n t . D i s t . , Minn W i n s t o n - S a l e m , N .C. West V i r g i n i a , S t a t e o f

*Delaware Co. A u t h . , P a . She lby Co. H e a l t h & E d u c . F a c .

B d . , Tenn. J e f f e r s o n C o . , Ky. Omaha, Neb. Cambridge, M a s s .

* 0 h i o , S t a t e o f *North C a r o l i n a Educ. A s s t . A u t h . *Hawai i , S t a t e o f

P i t t s b u r g h , Pa. M i s s o u r i Bd. o f P u b l i c B u i l d i n g s G e o r g i a Mun. E l e c t r i c A u t h . Iowa S t a t e U n i v e r s i t y

* W o r c e s t e r , M a s s . * 0 h i o , S t a t e o f ^Wyoming Mun. Power Agy .

U n i v . o f Texas S y s t e m Texas A and M U n i v . S y s .

*New York , S t a t e o f *Goose Creek I n d . S c h . D i s t . , Tex .

F l i n t , M i c h i g a n I l l i n o i s , S t a t e o f

* L o u i s i a n a , S t a t e o f I n d e p e n d e n c e , Mo. Washtenaw C o . , Mich .

* F l o r i d a , S t a t e of *West J e f f e r s o n , A l a .

Fond Du Lac , W i s e . * P l a t t e C o . , Wyo.

New Mex ico Albuquerque , N.M. P e n n s y l v a n i a , S t a t e o f Maryland, S t a t e o f P o r t l a n d , Ore .

* 0 s h k o s h , W i s e .

Rev . G.O. G.O. G.O. R e v .

Rev . R e v . G.O. G.O. R e v . R e v . R e v . G.O. G.O. Rev . Rev . G.O. R e v . Rev. R e v . R e v . G.O. G.O. G.O. G.O. G.O. R e v . G.O. R e v . Rev . G.O. Rev . R e v . G.O. G.O. G.O. Rev . Rev .

15.4 June 5 16.0 June 6 10.2 June 6 50.0 June 6 18.4 June 6

22.0 June 6 42.0 June 6 20.0 June 6 23.0 June 7 25.5 June 7 19.0 June 7 20.0 June 7 14.0 June 7 13.5 June 7

100.0 June 7 12.0 June 7 12.2 June 8 17.5 June 8 22.0 June 8 21.0 June 8 11.0 June 8 56.2 June 9 10.5 June 12 10.0 June 12

150.0 June 13 115.8 June 13

38.8 June 13 13.0 June 13

137.3 June 14 48.0 June 14 19.3 June 14 60.0 June 15 32.2 June 19 18.0 June 19 69.0 June 20

115.0 June 21 15.0 June 29 13.9 June

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. 9


m

11

Table 6B Continued


OTHER THAN U.S. TREASURY 1

As of June 2, 1978

AMOUNT APPROXIMATE ISSUER TYPE (IN MILLIONS DATE OF OFFERING ISSUER OF DOLLARS)

STATE & LOCAL *Valdez, Alaska North Carolina Medical Care Comm.

POSTPONEMENT I l l i n o i s Health Fac. Auth.

Rev . Rev.

Rev .

24.0 69.0

34.1

June June

May 31


Table 7

STOCK PRICES AND VOLUME

TRADING VOLUME STOCK PRICES

AMEX DATE NASDAQ AMEX NYSE NASDAQ BJ INDUSTRIALS NYSE INDEX

1974-High Low

1975-High Low

1976-High Low

1977-High Low

1978-High Low

May 5 12 19 26

June 2

53.37 (3/13) 32.89 (10/3)

51.24 (7/15) 37.16 (1 /8)

57 .51 (9/21) 48.04 (1 /2)

57.69 (1 /3) 49.78 (11/2)

55.68 (5/17) 48.37 (3 /6)

53.97 54.85 54.95 54.14

55.03

891.66 (3/13) 577.60 (12/6)

881.81 (7/15) 632.04 (1 /2)

1014.79 (9/21) 858.71 (1 /2)

999.75 (1 /3) 800.85 (11/2)

858.37 (5/17) 742.12 (2/28)

829.09 840.70 846.85 831.69

847.54

102.01 (3/14) 58.26 (12/9)

96.86 (7/15) 62.20 (1 /2)

107.05 (7/12) 84.31 (1/2)

127.89 (12/30) 109.61 (1/12)

145.85 (5/22) 119.73 (1/11)

139.89 142.57 144.86 144.30

145.61

96.53 (3/15) 54.87 (10/3)

24.9 7.5

(1 /3 ) (7 /5)

4 . 4 .9

(1 /3 ) (9 /26)

7 .5 2 . 8

(1 /3) (7 /5 )

88.00 (7/15) 60.70 (1 /2)

35.2 8 .7

(2/13) (9/15)

4 . 2 1 . 1

(2 /21) (9 /15)

8 . 1 2 .5

(2 /13) (9 /15)

92.52 (7/15) 78.06 (1 /2)

44.5 10 .3

(2/20) (1 /2)

8 .6 1 . 1

(2 /20) (1 /2 )

1 1 . 1 3 .5

(2/20) (1 /2 )

105.05 (12/30) 93.66 (4 /5)

35 .3 10.6

(11/11) (10/10)

4 .2 1 . 4

(1 /13) (9 /22)

11 .2 5 . 1

(11/10) (5 /27)

121.93 (5/22) 99.09 (1/11)

63.5 7 .6

(4/17) (1/20)

6 . 2 1 . 3

(4 /17) (1 /20)

18 .8 2 . 8

(5 /18) (1 /20)

117.27 119.40 121.57 119.86

39.2 36.4 40.8 28.6r

5 . 3 5 .2 5 .5 4. l r

14.6 13 .7 16 .6 12 .5r

121.03 26 .3 3 .4 10 .8

NOTES: 1 Figu.es other then 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 Breed 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 OF PERIOD

OUTSTANDING 1977 - February

March April May June July August September October November December

1978 - January February March Apri l

CHANGE IN OUTSTANDING

1977 -

1978

BROKERS ON 1

MARGIN STOCK

8,480 8 ,690 8,880 9 ,070 9,230 9,460 9 ,560 9,590 9,560 9,610 9,740

9,590 9,780 9,920

10,260

- F e b r u a r y 210 March 210 A p r i l 190 May 190 June 160 J u l y 230 August 100 September 30 October -30 November 50 December 130

- J a n u a r y -150 F e b r u a r y 190 March 140 A p r i l 340

BROKERS ON2

CONVERTIBLE BONDS

197 199 196 196 198 204 200 196

250

246 242 250

1 2

- 3

2 6

- 4 - 4

-4 -4 8

BANKS

844 810 807 801 873 875 885 881 882 872 873

851 877 824

12 -34

- 3 —6 72 - 2 10 - 4

1 - 1 0

1

- 2 2 26

-53

UNREGULATED NONMARGIN STOCK CREDIT

AT BANKS

2,319 2,312 2,350 2,345 2 ,551 2 ,568 2,587 2 ,581 2,579 2 ,604 2 ,568

2,565 2 ,544 2,544

7 -7 38 - 5

206 17 19 - 6 —2 25

-36

- 3 - 2 1

T l l i g m 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 report,ng

sample which accounted for 60 per cent of security credit outstanding at banks on June 30. * — =

value. 5 Data prior to November not strictly comparable due to changes in reporting.


t Table 9

SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN MILLIONS OF DOLLARS

TOTAL SAVINGS & LOAN ASSOCIATIONS MUTUAL SAVINGS BANKS SHARE CAPITAL REGULAR DEPOSITS

DATE

1974 1975 1976 1977

1977 -

1978 -

September October November December

January February March / April

1977 -

1978 -

NET FLOW

2,165 11,070 12,670 10,647

ANNUAL 3 GROWTH

RATE

NET NEW

MONEY

2.3 11.3 11.6

8.8

September 1,131 10.5 uctoDer 1,257 11.6 November 515 4.7 December 655 5.9

January 721 6.5 February 370 3 .3 March , April

448 4.0 March , April 301 2.7

-2,822 4,757 5,275 2,811

1,200 -137 5,961 683 296 2,396 406 — 99 1,729

1,425 -115 5,542

626 -59 2,745 476 170 2,297

1,712. 338 7,153 -250 -550 518

NET FLOW

ANNUAL 3 GROWTH

RATE

NET NEW

MONEY

16,006 42,769 50,169 50,963

7.1 17.6 17.6 15.2

4,668 29,276 34,369 31,972

NOT SEASONALLY ADJUSTED

SEASONALLY ADJUSTED

5,656 18.2 3,832 12.2 3,711 11.7 3,410 10.6

2,012 6.2 2,226 6.8 2,846 8.7 2,093 6 .3

NET FLOW

18,171 53,839 62,839 61,610

6,787 5,089 4,226 4,065

2,733 2,596 3,294 2,394

ANNUAL 3 GROWTH

RATE

5.6 15.8 15.9 13.5

16.2 12.0

9.9 9 .4

6 .3 5.9 7.5 5 .4

1 R•pilar 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 yowth rate for monthly data is the ennualized monthly percentage increase in deposits. •: National Association of Mutual Savijjos Banks and Federgl Home Loan Bank Board.

NET NEW

MONEY

1,846 34,033 39,644 34,783

1,666 7,161 1,529 2,270 3,079 2,566 1,516 2,135 1,615

883 6,967 768

2,877 3,371 2,818 2,073 2,773 2,243 2,592 8,865 2,930

364 268 —186

a pce: I H.16


15 Table 10

MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS

BILLIONS OF DOLLARS, SEASONALLY ADJUSTED

OUTSTANDING COMMITMENTS NET CHANGE

PERIOD ALL SAVINGS MUTUAL ALL SAVINGS MUTUAL PERIOD TOTAL & LOAN SAVINGS BKS TOTAL & LOAN SAVINGS BKS

ASSOCIATIONS (N Y. STATE) ASSOCIATIONS (N Y. STATE)

1972 25.2 20.3 4 .9 7.48 6 .28 1.20

1973 19.9 16.4 3 .5 - 5 . 3 1 - 3 . 9 2 -1 .39

1974 14.7 12.5 2 . 2 - 5 . 2 0 - 3 . 9 1 -1 .29

1975 20.6 18,6 2 .0 5 .81 6 .06 - .25

1976 - Jan 20.6 18.6 2 .0 .35 .35 Feb 21.3 19.4 2 .0 .79 .84 - .05 Mar 21.8 19.6 2 .2 .33 .16 .17 Apr 21.8 19.6 2 .2 .12 .04 .08 May 22.4 20 .1 2 . 3 .50 .46 .04 Jun 22.9 20.7 2 .2 .57 .59 - .02 Jul 23.2 21.0 2 . 3 .30 .27 .03 Aug 23.6 21.3 2 .3 .40 .35 .05 Sep 24.5 21.9 2 .6 .89 .62 .27 Oct 25.7 23.1 2 .6 1 .21 1 .21 —

Nov 27 .1 24.3 2 .7 1.35 1 .24 .11 Dec 27.9 25.0 2 .8 .76 .70 .06

1977 - Jan 28.0 25.4 2 .8 .45 .38 .07 Feb 28.6 25.6 3 .0 .43 .23 .20 Mar 29.7 26.5 3 .2 1.07 .90 .17 Apr 30.2 27.0 3 .2 .49 .49 May 30.6 27.3 3 .3 .37 .30 .07 Jun 31.9 28.1 3 .8 1.33 .80 .53 Jul 32.4 28.7 3 .8 .54 .57 - .03 Aug 34.0 30.0 3.9 1 .50 1 .32 .18 Sep 35.1 31.0 4 . 1 1 .24 1.07 .17 Oct 37.4 32.8 4 .5 1.95 1.78 .37 Nov 38.8 34.0 4 .7 1.41 1.18 .23 Dec 39.2 34.3 4 .6 .24 .34 - .10

1978 - Jan 38.6 34.2 4 .4 - .35 - .11 - .24 Feb 37.6 33.3 4 . 3 -1 .05 - .96 - .09 Mar 36.9 32.7 4 .2 - .65 - .59 - .06 Apr 36.3 32.1 4 . 2 - .69 - .65 - .04

NOTES: Data r e v i s e d due t o r e - e s t i m a t i o n of s e a s o n a l f a c t o r s . Based on data from Federal Home Loan Bank Board and Savings Banks Association of New York State. Both series include a minor amount of non-residential commitments; S&L commitments also include loans in process. Net changes are derived directly from unrounded endof period outstanding levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding.

H.16 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 T a b l e 11

NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES

IN MILLIONS OF DOLLARS

PERIOD

TOTAL INCLUDING

SHORT-TERM DISCOUNT

NOTES

INTERMEDIATE AND LONG-TERM I S S U E S

TOTAL FHLB FHLMC FNMA

0 +300 -64 0 0 302 0 100 115 0 700 -263

200 0 —48 o 600 69

0 - 0 -197 196 300 -360 -4 -300 -547 -7 700 -569 -7 0 -346 —6 -200 99 -9 300 : -349

+190 0 597 -10 200 5

—8 318 -347 - 9 12 -255 -7 -212 364

-189 -1 -176 -393 1 -270

-4 -350 643 0 752 -402

200 -8 235 3 200 402

-47 600 -22 -3 0 46

9 -300 486 11 200 —36

200 0 -34 0 0 1,078

-12 0 411 -12 0 324 -17 0 904

0 600 248 0 0 1,000

FNMA & FHLB SHORT-TERM

DISCOUNT NOTES 1

1975 - July Aug. Sept. Oct. Nov. Dec.

1976 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

1977 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

1978 - Jan. Feb. Mar. April May e

+236 -398

215 587 152 669

-197 -964 -851

124 -953 -107

-58 787 195 -37

-552 145

12 -862

289 344 532 605 531 347 195 247 466

1,078

399 1,712

887 848

2,600

+300 -700

100 850 200 600

0 —604 -304

693 -607 - 2 0 6

291 +190

190 310

-297 -219

188 -592 -354

746 297 203 553 301

-291 211 500

0

- 1 2 1,388

-17 600

1,600

0 -700

0 +150

0 0

0 -1,100

0 0

—600 0 0 0 0 0

-300 0

0 - 2 0 0

0 —6

105 0 0

304 0 0

300 0

1,400 0

0 1,600

NOTES: Based on data from Treasury Survey of Ownership.

1 Sales of FHLB discount notes began in May 1974.

p Preliminary


Table 12

NET CHANGE IN MORTGAGE HOLDINGS IN MILLIONS OF DOLLARS

17

PERIOD TOTAL

INCLUDING FNMA-GNMA

FINANCIAL INSTITUTIONS 2 FNMA-GNMA PERIOD

TOTAL INCLUDING

FNMA-GNMA TOTAL COMMERCIAL

BANKS MSB's S & L's INSURANCE

COMPANIES

2 FNMA-GNMA

1970 21,930 17,020 2,462 1,956 10,254 2,348 4,910 1971 41,406 39,018 9,940 3,938 23,919 1,221 2,388 1972 57,587 55,562- 16,800 5,377 31,932 1,452 2,026 1973 58,372 55,072 19,600 5,642 25,552 4,278 3,300 1974 42,739 36,517 11,700 2,172 17,567 5,078 6,222 1975 43,497 38,658 4,200 2,236 29,289 2,933 4,839 1976 62,783 64,903 13,900 4,074 44,515 2,414 -2 ,120 1977 96,814 95,924 25,700 6,474 58,566 5,184 890

Not Seasonally Adjusted

1977 - Oct 8,349 8,380 2,300 690 4,876 614 -31 Nov 7,940 7,844 2,100 564 4,754 426 96 Dec 9,096 8,874 1,700 771 4,748 1,655 222

1978 - Jan 5,457 5,137 1,300 412 3,019 406 320 Feb 5,655 5,157 1,100 344 3,409 304 498 Mar 2,400 553 4,835 473 Apr 2,600 4,812

Seasonally Adjusted

1977 - Oct 8,533 8,625 2,265 675 5,162 523 -92 Nov 8,822 8,729 2,284 605 5,437 403 93 Dec 9,192 9,117 1,951 647 5,262 1,257 75 •-

1978 - Jan 7,488 7,109 1,688 572 4,305 544 379 Feb 7,102 6,502 1,509 515 4,041 377 600 Mar 2,329 587 4,830 560 Apr 2,249 4,256

NOTES:

1 Monthly data for commercial banks based on Federal Reserve estimates bench marked to Call Report data on real estate loans outstanding as avail-able. 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 de-rived from regular quarterly series because of minor conceptual differences for which adjustments are not made in the monthly series. Altogether, these groups accounted for 83 per cent of the net increase estimated for all holders in 1974.

2 Beginning January 1972 data reflect activity in limited amount of conventional mortgages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 Table 13

NET INCREASE IN MORTGAGE DEBT OUTSTANDING

IN BILLIONS OF DOLLARS, SEASONALLY ADJUSTED ANNUAL RATES

1 COMMERCIAL

<

MULTFAMi-Y &

COMMERCIAL FARM

6 . 7 1 6 . 2 1 . 7 9 . 3 2 0 . 0 2 . 1

1 2 . 1 2 1 . 4 2 . 6 1 1 . 6 2 0 . 7 3 . 1

1 4 . 8 2 6 . 1 3 . 5 1 6 . 5 2 9 . 6 3 , 5 1 4 . 9 2 5 . 9 3 . 6 2 1 . 0 3 6 . 7 3 . 6

1 9 . 1 2 7 . 3 5 . 6 2 1 . 7 3 4 . 7 5 . 8 1 9 . 4 3 1 . 9 5 . 0 1 6 . 4 2 4 . 3 5 . 5

1 7 . 5 2 7 . 0 3 . 6 1 8 . 7 2 5 . 6 4 . 9 1 3 . 6 2 0 . 3 5 . 8 1 1 . 2 1 5 . 5 5 . 9

9 . 0 9 . 8 5 . 3 1 0 . 3 1 0 . 3 4 . 9 1 2 . 9 1 3 . 3 4 . 0 1 2 . 8 1 1 . 7 4 - 1 ,

1 3 . 7 1 5 . 0 5 . 3 1 4 . 5 1 4 . 4 4 . 8 1 3 . 4 1 7 . 2 6 . 9 1 3 . 0 1 5 . 5 7 . 6

1 5 . 5 1 9 . 1 8 . 6 ' 2 0 . 3 2 7 . 2 9 . 3 2 0 . 4 2 7 . 8 8 . 9 2 4 . 9 3 4 . 1 8 . 5

2 0 . 6 2 8 . 7 9 . 8 ,

QUARTER

1971 -

1972 -

1973 -

1974 -

1975 -

1976 -

I I I I I I IV

I I I I I I IV

I I I I I I IV

I I I I I I IV

I I I I I I IV

I I I I I I IV

1977 - I I I I I I IV

1978 - I (p)

TOTAL

4 1 . 2 5 1 . 8 5 7 . 8 5 9 . 5

6 7 . 6 7 4 . 1 7 7 . 6 88.1

8 0 . 6 8 7 . 4 8 0 . 7 7 0 . 4

6 9 . 9 7 0 . 9 5 4 . 5 4 6 . 7

4 4 . 0 5 5 . 0 6 2 . 3 6 7 . 7

7 8 . 6 7 7 . 1 9 4 . 0 9 8 . 5

1 0 6 . 4 1 3 4 . 3 1 4 0 . 0 1 4 6 . 1

1 2 4 . 1

RESIDENTIAL

TOTAL 1- to 4-FAMILY

3 2 . 7 4 0 . 3 4 3 . 44 .

49 . 54, 59. 6 3 . 6

5 6 . 0 5 9 . 9 5 6 . 2 4 8 . 5

4 8 . 7 4 7 . 2 3 5 . 1 2 9 . 7

2 9 . 7 3 9 . 8 4 5 . 3 5 0 . 8

5 9 . 7 5 7 . 8 7 3 . 8 7 8 . 0

8 2 . 2 1 0 4 . 7 1 1 0 . 7 1 1 2 . 7

9 3 . 7

2 3 . 2 2 9 . 6 3 3 . 8 3 5 . 7

3 8 . 0 4 1 . 0 4 8 . 1 4 7 . 9

4 7 . 8 4 6 . 9 4 3 . 7 40.6

3 9 . 2 4 0 . 3 2 8 . 4 2 5 . 4

2 8 . 9 3 9 . 8 4 4 . 9 5 1 . 9

5 8 . 3 5 8 . 0 7 0 . 0 7 5 . 5

7 8 . 7 9 7 . 8

1 0 3 . 3 1 0 3 . 5

8 5 . 6

MULTI-FAMILY

9 . 5 1 0 . 7

9 . 3 9 . 1

1 1 . 3 1 3 . 1 11.0 1 5 . 7

8.2 1 3 . 0 1 2 . 5

7 . 9

9 . 5 6 . 9 6 . 7 4 . 3

0 . 8 0.0 0 . 4

- 1 . 1

1 . 4 - 0 . 1

3 . 8 2 . 5

3 . 5 6 . 9 7 . 4 9 . 2

8 . 1

NOTES: 1 Derived from data on mortgage de rt 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 o n l y and i s sum of 1 - t o 4 - f a m i l y and m u l t i f a m i l y mortgage d e b t .


Table 14

PRIVATE HOUSING PERMITS, STARTS, COMPLETIONS, AND MOBILE HOME SHIPMENTS

IN THOUSANDS OF UNITS, SEASONALLY ADJUSTED ANNUAL RATES

COMPLETIONS STARTS PERMITS 1

PERIOD

1969 1970 1971 1972 1973 1974 1975 1976 1977

1977 -

1978

July Aug. Sept. Oct. Nov. Dec.

Jan. Feb. Mar. Apr.

TOTAL 1—FAMILY 2 - O R MORE FAMILY

1,324 1,352 1,925 2,219 1,820 1,074

939 1,297 1,677

1,639 1,772 1,695 1,850 1,893 1,811

1 ,526 1 ,534 1,647 1 ,752

626 647 906

1,033 882 644 676 894

1,125

1,089 1,156 1,135 1,216 1,257 1,210

1 ,032 95 7

1,037 1,160

698 705

1,018 1,186

937 431 264 403 552

550 616 560 634 636 601

493 577 610 592

TOTAL 1—FAMILY 2 - O R MORE FAMILY

1,407 1,434 2,052 2,357 2,045 1,338 1,160 1,538 1,987

2,072 2,038 2,012 2,139 2,096 2,203

1,548 1,569 2,060 2,189

811 813

1,151 1,309 1,132

888 892

1,162 1,451

1.453 1.454 1,508 1,532 1,544 1,574

1,156 1 , 1 0 3 1 ,444 1 ,502

656 621 901

1,048 914 450 268 376 375

619 584 504 607 552 629

392 474 635 687

TOTAL 1 —FAMILY 2 - O R MORE FAMILY

1,399 1,418 1,706 1,972 2,014 1,692 1,297 1,362 1,652

1 ,671 1,677 1,875 1,665 1,769 1 ,641

1,759 1 ,692 1,815

808 802

1,014 1,143 1,174

932 867

1,026 1,254

1,253 1,269 1,458 1,249 1,280 1.299

1 .300 1 ,235 1 ,381

592 617 692 828 840 760 430 336 398

419 409 417 416 489 342

4 5 9 45 7 434

MOBILE HOME

SHIPMENTS

413 401 497 576 567 329 216 246 277

251 270 300 319 318 324

322 269 276

NOTES

home shipments are Mobile Home Manufacturers Association data converted to seasonally adjusted annual rate by Census Bureau.

1 Permit data for 1969 and 1970 based on 13,000 areas with permit systems

H vo


Table 15

AVERAGE RATES AND YIELDS ON HOME MORTGAGES ro o

CONVENTIONAL LOANS PRIMARY MARKET SECONDARY MARKET

SPREAD BETWEEN

DFTIIRNQ flN NFW Aaa NEW HOMES EXISTING HOMES NEW HOMES 1

nC 1 UnPIO VM CONVENTIONAL

n t n na<i UTILITY

PERIOD RATE

(IN PER CENT)

1 SPREAD (BASIS

POINTS)

RATE (IN PER CENT)

1

SPREAD (BASIS

POINTS)

YIELD (IN PER CENT)

1 SPREAD (BASIS

POINTS)

-j < :

DISCOUNT (PERCENTAGE

POINTS)

AND HUD(FHA) NEW HOME

MORTGAGES (BASIS

POINTS)

BOND YIELD

(IN PER CENT)

1976 - High Low

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

1977 - High Low

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

1977 - July Aug. Sept. Oct. Nov. Dec .

9.00 9.00 9.00 9.00 9.05 9.10

83 99 86 72 82 N.A.

9.05 9.05 9.05 9.05 9.05 9.10

88 104

91 77 82 N.A.

8.74 8.74 8.72 8.78 8.78 8 .91

57 73 58 50 55 N.A.

1.9 1.9 1.7 2 .2 2 .2 3 .2

26 26 28 22 27 19

8.17 8.01 8.14 8.28 8.23 N.A.

1978 - Jan. Feb. Mar . Apr.

9.15 9.25 9.30 9.40

N.A . 54 47 48

9.20 9.25 9.30 9.45

N.A. 54 47 53

9.11 N.A. 9.29 9.37

N.A. N.A. 46 45

4 . 7 N.A. 4 . 1 4 .7

4 N.A.

1 3

N.A. 8 .71 8.83 8.92

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 down-payment, prepaid in 15 years, for immediate delivery, are used.


21

Table 16

FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS

DATE OF AUCTION

GOVERNMENT-UNDERWRITTEN AMOUNT

(IN MILLIONS OF DOLLARS) OFFERED ACCEPTED

AVERAGE YIELD

CONVENTIONAL AMOUNT

(IN MILLIONS OF DOLLARS) OFFERED ACCEPTED

AVERAGE YIELD

1977

1977

High

Low

July 11 25

Aug. 8 22

Sept . 7 19

Oct. 3 17 31

Nov. 14 28

Dec. 13 27

1978

Feb. 6 21

Mar. 6 20

Apr. 3 17

May 1 15 30

855 (12/27) 570 (12/27) 8 . 9 8 ( 1 2 / 2 )

50 (9 /7 ) 35 (9 /7) 8 . 4 6 ( 1 / 1 0 )

130.5 75.9

195.0 119.9

50 .3 62 .6

131.3 325.8 156.1

110.6 99 .8

329.1 855.4

Jan. 9 1011.0 23 768.8

640.9 558.2

358.8 64 .9

525.5 283.8

655.1 611.4 851.2

77.3 54 .1

143.1 78.3

35 .1 40 .3

82 .2 212.6 105.7

69.5 83 .2

224.3 569.7

605.3 356.6

338.0 285.5

218.5 116.4

363.7 165.5

349.9 269.9 446.9

8 .72 8 .71

8.75 8.77

8 .74 8 .74

8.77 8 .84 8 .86

8 .86 8.85

8 .89 8 .98

9.13 9 .21

9.27 9.35

9.36 9 .33

9.44 9.44

9 .52 9 .63 9 .83

383 (5 /2 ) 278 (5 /2 ) 9 .21 (12/27)

123 (7 /25) 71 (9 /19) 8 .81 (1/10)

163.9 122.9

199.8 170.4

138.9 107.5

187.3 242.7 328 .1

308.6 229.0

262.2 329.4

403.6 546.3

633.6 580.5

444.8 378.7

522.8 451.4

645.8 716.9 573.1

101.6 82.8

144.4 92 .3

113.9 70.5

137.2 167.8 224.0

202.8 183.5

168.9 190.5

192.8 256.8

299.3 266.7

266.4 246.1

295.3 282.8

305.4 362.5 300.4

9.08 9.06

9.06 9.06

9.06 9.05

9.07 9 .11 9.14

9.16 9.16

9.17 9 .21

9.28 9.37

9.45 9 .53

9.59 9.62

9.69 9.74

9.80 9.89

10.01

NOTES: Average secondary market yields are gross before deduction of the fee of 38 basis points paid for mortgage servicing. They reflect the average ac-cepted 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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