Market Developments. Digitized for FRASER Federal Reserve Bank of St. Louis. October 27,1975

Transcription

1 Market Developments October 27,1975 Prepared by the CAPITAL MARKETS SECTION in conjunction with the MORTGAGE, AGRICULTURAL, CONSUMER FINANCE SECTION and DIVISION OF RESEARCH AND STATISTICS BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM Washington, D C

2 Index TABLES 1-6 SECURITY VOLUME AND YIELDS 7, 8 STOCK MARKET AND SECURITY CREDIT 9-16 MORTGAGE MARKET SYMBOLS 6 ESTIMATE p PRELIMINARY r REVISED n.a. NOT AVAILABLE DATA DO NOT EXIST

3 Table 1 YIELDS, VOLUME AND RECEPTION 3 CORPORATE BOND MARKET YIELDS VOLUME WEEK ENDING NEW ISSUE 1 RECENTLY 2 3 GROSS PER CENT NEW ISSUES 4 Aaa UTILITY OFFERED OFFERINGS SOLD BY END IN SYNDICATE Aaa UTILITY ($ MILLIONS) OF WEEK ($ MILLIONS) Aug Sept Oct r p 9.30p MUNICIPAL BOND MARKET YIELDS VOLUME WEEK ENDING 3 MOODY'S BOND BUYER GROSS PER CENT NEW ISSUES 4 NEW ISSUE 20-BOND OFFERINGS SOLD BY END IN SYNDICATE INDEX ($ MILLIONS) OF WEEK ($ MILLIONS) - Aug Sept QZ- Oct 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.

4 Table 2 HIGH GRADE BOND YIELDS DATE NEW ISSUE Aaa UTILITY 1 RECENTLY OFFERED Aaa UTILITY 2 MOODY'S SEASONED 3 CORPORATE Aaa 4 U.S. GOVT. 20-YEAR CONSTANT MATURITY BOND BUYER 20-BOND INDEX High 8.26 (7/30) 8.23 (1/1) 7.71 (8/21) 6.51 (6/18) 6.23 (6/23) Low 7.02 (2/5) 7.17 (12/31) 7.06 (2/12) 5.69 (3/23) 4.97 (10/21) High 7.60 (4/21) 7.49 (4/21) 7.36 (4/28) 6.19 (4/14) 6.54 (4/13) Low 6.99 (11/24) 7.15 (12/1) 7.05 (2/12) 5.74 (11/17) 4.96 (10/21) High 8.52 (8/10) 8.32 (8/10) 7.77 (8/24) 7.79 (8/10) 5.59 (8/3) Low 7.29 (1/21) 7.28 (1/5) 7.11 (1/5) 6.42 (1/5) 4.99 (10/11) High (10/4) (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) 5.16 (2/7) 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) Sept Oct r , r 8.86r 8.34% p 9.30p 8.83p 8.28p Federal Reserve series of implied yield on newly issued, Aaa-rated utility bond with 5-year call protection. 2 Federal Reserve series of implied free-market yield on competitively bid Aaa-rated utility bond with 5-year call protection released from price restrictions sometime during the last 4 3 Weekly average of daily closing figures. 4 Weekly average of daily figures. U.S. Treasury data. 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. Digitized for FRASER

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 i January February March 5,376 4,526 5,368 3,328 2,687 3,217 2,327 1,962 3,933 2,361 2,387 2,135 2,255 2,003 2,025 1,977 1,515 2,467 April May June July August September 4,439 5,646 5,570 3,060 3,164 2,981 3,248 2,667 1,617 2,497 2,543 3,578 2,631 1,806 1,915 2,406 2,900 3,064 3/ 3,563", 3,3462/ 2,6521/ 2,397 2,304 2,166 1,459 1,106 1,701 1,826 1,939 2,152 2,028 1,657 1,750 October November December * 4,609 3,739 3,511 3,398 3,563 3,238 2,860 2,483 1,479 2,313 2,257 2, ,270 15,655 9,232 9,205 7,532 11,859 8,222 8,618 6,352 10,199 6,883 8,370 9,561 6,283 6,867 4,266 6,822 5,959 5,917 5,435 6,659 1st Half 3 Qtrs. Year 30,925 18,437 25,969 37,828 16,840 23,192 33,391 13,150 17,416 24,238 11,876 17,311 23,970 1 Securities and Exchange Commission estimates of gross proceeds. 2 Securities Industry Association estimates of principal amounts. 3 Includes Municipal Assistance Corporation bonds. Digitized for FRASER I

6 Table 4 NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER IN MILLIONS OF DOLLARS PERIOD TOTAL GROSS PROCEEDS BY TYPE OF ISSUE BONDS COMMON MEMO AND PUBLICLY PRIVATELY ISSUES INCLUDED OFFERED PREFERRED PLACED STOCK FOREIGN [CONVERTIBLE GROSS PROCEEDS BY TYPE OF ISSUER MANUFAC- TURING PUBLIC COMMUNI- OTHER UTILITY CATIONS ISSUERS III 7,532 5,025 1,222 1, ,887 2,376 1,008 2,263 IV 11,859 8,611 1,571 1, ,079 3, , I 15,270 10,829 2,333 2,108 1, ,055 4,732 1,380 3,105 II X 15,655 10,510 1,564 3,581 1, ,513 4,405 1,338 3, June 2,981 1, , July 3,248 2, , ,242 Aug. 2,667 2, , Sept. 1, Oct. 4,609 3, , ,297 Nov. 3,739 3, , Dec. 3,511 2, , , Jan. 5,376 3,657 1, ,901 1, ,268 Feb. 4,526 3, ,675 1, Mar. 5,368 3, ,479 1, ,066 Apr. 4,439 2, , ,731 1, May 5,646 3, , ,479 1, ,207 5,570 3, , ,303 1, ,426 1 Other issuers are extractive, railroad and other transportation, real estate and finance, and commercial and other. Source: Securities and Exchange Commission. Digitized for FRASER

7 Table 5A INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 1 October 1, thru October 24» 1975 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OFFERING YIELD MOODY'S RATING CORPORATE AT&T Com stk Standard Oil Co. (Ohio) Com stk Cities Service Co. SF debt A Hartford Elect. Light & Power Co. 1st mtge A/BBB Pacific Gas & Electric 1st mtge Aa/AA- Union Pacific Ry Co. Equip tr Aaa Brockton Edison Co. 1st mtge Baa/A Michigan Bell Tele. Co. Debt 200, Aaa Morton-Norwich Products Inc. SF debt A Mack Trucks Inc. Notes Baa/BBB Savannah Elect. & Power Co. 1st mtge Ba/BB Jerrico Inc. Com stk 31.6 Louisville Gas & Electric Co. Com stk 15.6 Rochester Gas & Electric Pfd stk A Rochester Gas & Electric Com stk 15.4 United Nuclear Com stk 15.3 Central Illinois Light Pfd stk A Iowa Public Service Com stk Sundstrand Corp. Com stk Pennsylvania Electric Co. Pfd stk Baa/BBB Public Service Corp., New Hampshire Com stk Toledo Edison Co. 1st mtg A/A+ Gen. Tel. of Indiana Debt Aa Rights offering. 1 Includes only corporate and other security offerings of $15 million and over; excludes options, exchanges, and secondary offerings.

8 Foreign Municipal Fin. Auth. of British Columbia SF debt A Digitized for FRASER INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY October 1, thru October 24, 1975 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OFFERING YIELD MOODY'S RATING CORPORATE Public Service Corp. of New Hampshire 1st mtg Baa/BBB Pennsylvania Power 1st mtg 25, A. Nat'l Rural Util. Coop. Fin. Corp. Coll tr A/AA Kewanee Industries, Inc. SF debt A Exxon Pipeline Co. Debt Aaa Exxon Pipeline Co. Notes Aaa Avondale Shipyard, Inc. SF debt NR Avondale Shipyard, Inc. SF debt NR New York State Elect. & Gas Com stk 26.1 Public Service of Colorado Com stk 30.0 Northern Indiana Public Service Com stk 33.5 Sundstrand Corp. Com stk 17.1 Kerr Glass Manuf. Co. Com stk 15.0 Houston Light & Power Pfd stk Aa/AA- Houston Light & Power Com stk 42.5 Interstate Power Co. 1st mtge A ITT Financial Corp. Notes A Itt Financial Corp. Debt A Public Service of Colorado 1st mtge Aa Walter Kidde & Co. Notes Baa/BBB Airco Inc. SF debt A Macy Credit Corp. Debt A Hospital Corp. of America 1st mtge NR/A Missouri Pacific RR Co. Equip tr A/AA

9 Table 5B INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 1 October 1, thru October 24, 1975 ISSUER TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY NET INTEREST COST OFFERING YIELD MOODY'S RATING STATE AND LOCAL Ohio, State of Rev A Oregon, State of G.O Aaa Smithtown Central Sch. Dist., N.Y. G.O Baa-1 Illinois Health Facilities Auth. Rev A Illinois Health Facilities Auth. Rev A Tallahassee, Fla. Rev A-l, Monroe Co., Mich. G.O Aa San Antonio, Texas Rev Aa Philadelphia Hospital Auth., Pa. Rev Aa Philadelphia Hospital Auth., Pa. Rev Aa Massachusetts Hsg. Finance Agy. Rev A-l Massachusetts Hsg. Finance Agy. Rev A-l Nebraska Public Power Dist. Rev \ MIG 2 Nebraska Public Power Dist. Rev MIG 2 Neibraska Public Power Dist. Rev MIG 2 Racine, Wise. G.O A-l Phoenix, Ariz. G.O Aa Beaumont, Texas G.O A-l Fairfield Indust. Dev. Bd., Ala. Rev Aa Fairfield Indust. Dev. Bd,, Ala. Rev Aa Des Plaines, 111. Rev * A Des Plaines,.111. Rev A Des Plaines, 111. Rev A 1 Includes only state and local security offerings of $10 million and over; excludes secondary offerings. 2 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. 3 Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal Agencies. Digitized for FRASER

10 Table SB Continued INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY October 1, thru October 24, 1975 STATE AND LOCAL ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY NET INTEREST COST OFFERING YIELD MOODY'S RATING Des Plaines, 111. Rev * 9.25 A Beaver Co. Indust. Dev. Auth., Pa. Rev A Philadelphia, Pa. Rev M1G1 Georgia, State of G.O , Aaa Virginia Housing Dev. Auth., Va. Rev A-l Virginia Housing Dev. Auth., Va. Rev A-l Fairfax Co., Va. G.O Aaa Monroe Co., Mich. Rev , Baa Monroe Co., Mich. Rev , 9.25 Baa Minneapolis-St. Paul Metro. Area, Minn. G.O , Aa Illinois Health Fac. Auth. Rev , A Illinois Health Fac. Auth. Rev A Illinois Health Fac. Auth. Rev A Gulf Coast Waste Disposal Auth., Tex. Rev Aaa Connecticut, State of* G.O Aa Connecticut, State of G.O Aa Connecticut, State of G.O Aa Maryland, State of G.O Aaa California Educ. Facilities Auth. Rev Aa California Educ. Facilities Auth. Rev Aa El Paso Co. Jr. College Dist., Tex. G.O Aa S. Vermillion High Sch. Bldg. Corp., Ind. Rev Baa-1 Newport News, Va. G.O A-l

11 Table 6A 11 FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 1 as of October 24, 1975 ISSUER TYPE AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING CORPORATE Pacific Northwest Bell Tel. Co. Debt October 28 Georgia Power Co. Pfd stk 75.0 October 28 Mallinckrodt Inc. Conv debt 30.0 October 28 Ohio Power Co. 1st mtge 25.0 October 29 *Commonwealth Edison Pfd stk 75.0 October 29 Tucson Gas & Elect. Co. 1st mtge 50.0 October 29 Mississippi Power Pfd stk 15.0 October 29 *West Point Pepperell Conv debt 25.0 October 30 Wisconsin Power & Light Com stk 25.0 October 30 GATX Equip tr 45.0 October 30 GATX Equip tr 15.0 October 30 First Maryland Bancorp Notes 25.0 October Transamerica Corp. Notes 50.0 October American Financial Corp.. Debt : 50.0 October North Carolina Power & Light Com stk 60.0 October Central Hudson Gas & Elect. 1st mtge 20.0 November 5 *Pacific Lighting Ser. Co. Debt 25.0 November 6 Pacific Gas & Elect. Co. Pfd stk 75.0 November 6 Florida Power & Light Co. 1st mtge 50.0 November 6 *International Minerals & Chemical Corp. SF debt November 6 Clark Equipment Credit Corp. Notes 50.0 November 11 Chesapeake & Ohio Ry Co. Equip tr 15.0 November 12 Arizona Public Service 1st mtge 60.0 November 12 Arkansas Power & Light Co. Pfd stk 40.0 November 12 Columbus & Southern Ohio Elect. 1st mtge 60.0 November 13 *General Motors Acceptance Corp. Notes November 13 Virginia Elect. & Power Co. 1st mtge November 13 Madison Gas & Elect. 1st mtge 25.0 November 13 *Southern Railway Co. Equip tr 15.0 November 18 *Iowa Public Service Co. Com stk 16.0 November 18 El Paso Elect. 1st mtge 15.0 November 18 Penn. Power & Light 1st mtge November 18 *Utah Power & Light Com stk 20.0 November 19 Utah Power & Light 1st mtge 60.0 November 19 Columbia Gas 1st mtge 75.0 November 19 Wisconsin Gas Co. 1st mtge 20.0 November 19 Wisconsin Elect. Power Co. 1st mtge 60.0 November 20 Included in table for first time. 1 Includes only corporate and other security issues of $15 million and over; excludes exchanges, options

12 12 Table 6A Continued FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS CORPORATE ISSUER OTHER THAN U.S. TREASURY 1 as of October 24, 1975 TYPE AMOUNT (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING Arizona Public Service Pfd stk 30.0 November 20 ^Georgia Power 1st mtge November 24 Brad Ragen Inc. Conv debt 10.0 November 25 *Gulf Power Pfd stk 15.0 November 25 Public Service Elect. Co. Pfd stk 40.0 November 25 *Super Vain Stores Com stk 16.5 November ^Stanley Works SF debt 50.0 November *American Communication Com stk 15.0 November ^Weyerhaeuser Co. Pfd stk November Consumers Power Com stk 55.0 November ^Southwest Gas Co. Pfd stk 40.0 November Kentucky Utilities Com stk 15.0 November FMC Finance Corp. Notes 50.0 November Virginia Elect. & Power Co. Com stk 47.5 November Panhandle Eastern Pipeline Debt 40.0 December 3 Panhandle Eastern Pipeline Com stk 45.0 December 3 Shenandoah Oil Corp. Conv debt 20.0 INDEF Consol Edison Co. of New York 1st mtge 80.0 INDEF Mead Corp. SF debt INDEF Armco Steel Corp. Notes 21.0 INDEF Pan American Bancshares Notes 20.0 INDEF Texas Gas Transmission Co. Debt 40.0 INDEF Allied Finance Co. Notes 20.0 INDEF Other Hudson Bay Mining & Smelting Co. "" Ltd. SF debt 50.0 October *European Investment Bank Notes 50.0 November 6 Matsushita Elect. Indust. Co. Ltd. Conv debt November Postponement General Telephone & Electronics Pfd stk October 30

13 FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS OTHER THAN U.S. TREASURY 1 13 STATE & LOCAL as of October 24, 1975» AMOUNT ISSUER TYPE (IN MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING Los Angeles Co. Courthouse Bldg. Corp. Rev 12.0 October 27 California, State of G.O October 28 *Hawaii, State of G October 28 Jacksonville Electric Auth, Fla. Rev 20.0 October 28 West Virginia, State of G.O October 29 *Oakland Co., Michigan G.O. 11,.9 October 30 Chicago Public Bldg. Comm.., 111. Rev 36,.0 October 30 Minnetonka, Minn. G.O November 3 Sonoma Co. Water Agency, Calir. Rev 11.,0 November 4 *Wayne Co., Michigan G November 5 Los Angeles Dept. of Water & Power Rev November 5 *Tampa, Fla. Rev 49, 0 November 6 *PennsyIvania, State of G.O November 6 * Raleigh, N.C. G.O November 25 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.

14 Table 7 STOCK PRICES AND VOLUME 0J INDUSTRIALS STOCK PRICES TRADING VOLUME (1/11) (12/13) (1/11) (12/5) (1/11) (12/20) (1/11) (12/13) 26.0 (9/20) 9.0 (8/20) 5.5 (1/12) 11.3 (1/11) 1.4 (8/20) 3.5 (8/27) (3/13) (10/3) (3/13) (12/6) (3/14) (12/9) (3/15) (10/3) 24.9 (1/3) 7.5 (7/5) 4.4 (1/3) (9/26) 2.8 (1/3) (7/5) (7/15) (1/8) (7/15) (1/2) (7/15) (1/2) (7/15) (1/2) 35.2 (2/13) 8.7 (9/15) 4.2 (2/21) 1.1 (9/15) 8.1 (2/13) 2.5 (9/15) , , , r , ,2r Figures 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 Based on average price change until September 4, 1973 thereafter, based on market value of shares listed.

15 Table 8 SECURITY CREDIT 15 REGULATED MARGIN CREDIT EXTENDED BY 4 END OF PERIOD BROKERS ON 1 BROKERS ON % 3 UNREGULATED NONMARGIN STOCK CREDIT MARGIN CONVERTIBLE BANKS AT BANKS STOCK BONDS OUTSTANDING July 4, ,023 2,091 Aug. 4, ,119 Sept. 4,020: ,060 Oct. 3 j? 30: ,024 Nov. 3,960: ,053 Dec. 3, , Jan. 3, ,919 Feb. 4, ,897 Mar. 4, ,882 Apr. 4,360: ,885 May 4,700: ,883 June 4, n.a. July 5,300: 144 n.a. Aug. 5,220: Sept. 5,250: CHANGE IN OUTSTANDING July Aug Sept Oct Nov Dec Jan Feb Mar. *> Apr May June July Aug. -80 Sept Margin account debt as reported by the New York Stock Exchange, excluding credit for subscription issues and convertible bonds. 2 New York Stock Exchange data. 3 June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which accounted for 60 per cent of security credit outstanding at banks on June Nonmargin stocks are those not listed on a national securities exchange and not included on the Board of Governors of the Federal Reserve System's list of OTC margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no

16 Table 9 SAVINGS FLOWS AT NONBANK THRIFT INSTITUTIONS IN MILLIONS OF DOLLARS / DATE MUTUAL SAVINGS BANKS SAVINGS & LOAN ASSOCIATIONS TOTAL REGULAR DEPOSITS SHARE CAPITAL DEPOSITS NET NET NET 2 ANNUAL 3 NEW ANNUAL 3 NEW ANNUAL 3 NET NET NET NEW GROWTH FLOW MONEY GROWTH FLOW MONEY GROWTH FLOW MONEY RATE RATE RATE , ,378 W ,653 37, , , ,451 32, ,884 42, , , , ,507 25, , , ,822 16, ,669 18, , May June , , July ,002-1,314 August ,147-1,218-1,793-2; May 1, ,895 3,690 5,038 4,620 1, ,226-3,089 8,053 3,805 July ,055 2,865 3,564 3,129 August _/ ,460 1,313 1,685 1,323 SEASONALLY ADJUSTED January , , February , , March 1, , , April , , May 1, , , June 1, , , July , , August / , , Regular deposits at mutual savings banks exclude items such as Christmas club and certain escrow accounts, which represent a very small part of total deposits. 2 New deposits net of both withdrawals and interest. Data for S&L's are for insured associations only, which represent 96 per cent of industry total resources. 3 Annual growth rate for monthly data is the annualized monthly percentage increase in deposits. Digitized for FRASER.... ;.

17 17 MORTGAGE COMMITMENTS AT SELECTED THRIFT INSTITUTIONS BILLIONS OF DOLLARS, SEASONALLY ADJUSTED OUTSTANDING COMMITMENTS NET CHANGE PERIOD ALL SAVINGS MUTUAL ALL SAVINGS MUTUAL TOTAL & LOAN SAVINGS BK5 3 TOTAL & LOAN SAVINGS BKS ASSOCIATIONS (N.Y. STATE] 1 ASSOCIATIONS (N.Y. STATE) Dec Dec Jan Feb Mar Apr May July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug fr m F«der«l Home Loan Bank Board and Savings Banks Association of New York State. Both series include a minor amount of nonresidential commitments; S&L commitments also include loans in process. Net changes are derived directly from unrounded end^f period outstandino levels as reported and after seasonal adjustment by Federal Reserve. Subtotals may not add to totals because of rounding. Digitized for FRASER

18 18 Table 11 NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES IN MILLIONS OF DOLLARS July Aug. Sept. Oct. Nov. Dec Jan. Feb. Mar. Apr. May- June July Aug. Sept. Oct. Nov. Dec Jan. Feb. Mar. Apr. May July p TOTAL INCLUDING SHORT-TERM DISCOUNT NOTES +1,475 +1,693 +1,910 +1, ,442 +2,699 +1, ,768 +1, , TOTAL INTERMEDIATE AND LONG-TERM ISSUES +1, ,349 +1,349 +1,850 +1,500 +1,950 +1, ,250 +1,500 +1,499 +1, ,750 +1, ,599 +1, ,279-1, o , ; FNMA SHORT-TERM DISCOUNT NOTES Notes: Based on data from the Treasury Survey of Ownership. u Sales of FHLB discount notes began in May / Preliminary.

19 Table 12 NET CHANGE IN MORTGAGE HOLDINGS IN MILLIONS OF DOLLARS TOTAL FINANCIAL INSTITUTIONS 2 PERIOD INCLUDING TOTAL COMMERCIAL MSB's S & L's INSURANCE FNMA-GNMA FNMA-GNM/ BANKS COMPANIES! Not Seasonally Ad lusted ,736 16,827 2,462 1,845 10,254 2,348 4, ,647 39,259 9,940 3,938 23,919 1,221 2, ,587 55,561 16,800 5,377 31,932 1,452 2, ,372 55,072 19,600 5,642 25,552 4,278 3, ,748 36,526 11,700 2,170 17,578 5,078 6, Oct. 2,419 1, Nov. 1,992 1, Dec. - 2,255 1, Jan. 1, Feb. 1,586 1, , Mar. 2,329 1, , Apr. 3,458 3, , May 3,966 3, , June 4,443 4, , July 4,493 3, , Aug , Seasonally Ad lusted Oct. 2,847 2, , Nov. 2,461 1, Dec. 1,986 1, Jan. 2,612 2, , Feb. 2,827 2, , Mar. 2,469 1, , Apr. 3,519 3, , May 3,488 3, , ,246 3, , July 3,851 3,329, , * Aug. 31 2, Monthly data for commercial banks based on Federal Reserve estimates benchmarked to Call Report data on real estate loans outstanding as available. Other data derived from mortgage debt outstanding as reported separately by National Assn. of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual savings banks and for Life Insurance companies may differ somewhat from those derived from regular quarterly series because of minor conceptual differences for which adjustments are not made in the monthly series. Altogether these groups accounted for 83 per cent of the net increase estimated for all holders in Beginning January 1972 data reflect activity in limited amount of conventional mortgages. Digitized for FRASER

20 20 NET INCREASE IN MORTGAGE DEBT OUTSTANDING 1 IN BILLIONS OF DOLLARS, SEASONALLY ADJUSTED ANNUAL RATES QUARTER TOTAL RESIDENTIAL 3 MULTFAMB.1 f TOTAL r 1- to 4- MULTI- COMMERCIAI & FAMILY FAMILY COMMERCIAI FARM I II IV I II III IV I II III IV I II III IV I II III IV I II III IV , I II III IV I II Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board. Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations and extrapolations, where required, estimated mainly by Federal Reserve. 2 May differ somewhat from related flow of funds series mainly because of more aggregative type of seasonal adjustment. 3 Residential mortgage debt includes nonfarm only and is sum of 1 to 4- family and multifamily mortgage debt^combined.

21 Table 14 PRIVATE HOUSING PERMITS, STARTS, COMPLETIONS, AND MOBILE HOME SHIPMENTS IN THOUSANDS OF UNITS, SEASONALLY ADJUSTED ANNUAL RATES PERMITS 1 STARTS COMPLETIONS MOBILE PERIOD TOTAL 1 FAMILY 2-OFt MORE TOTAL 1 FAMILY 2-OR MORE TOTAL 1 FAMILY 2-OR MORE HOME FAMILY FAMILY FAMILY SHIPMENTS , , , , , , , ,018 2,052 1, ,706 1, ,219 1,033 1,186 2,357 1,309 1,048 1,972 1, , ,045 1, ,005 1, , , Jan , Feb , , Mar , Apr , May , , June , , July 1, , , Aug , , Sept. 1, , Private building permits (for 14,000 areas with permit systems, excluding farm), starts, and completions are Census Bureau data. A dwelling unit is started when excavation begins. In the case of ro " apartment buildings, all units are considered started at that time; however, all such units are considered completed when more than half of the units in the structure are ready for use. Private mobile ^ home shipments are Mobile Home Manufacturers Association data converted to seasonally adjusted annual rate by Census Bureau. Permit data for 1969 and 1970 based on 13,000 areas with permit systems Digitized for FRASER

22 Table 15 AVERAGE RATES AND YIELDS ON HOME MORTGAGES 8 PERIOD High Low High Low Oct. Nov. Dec Jan. Feb. Mar. Apr. May June July Aug. RATE (IN PER CENT) CONVENTIONAL LOANS PRIMARY MARKET HUD(FHA) INSURED LOANS SECONDARY MARKET NEW HOMES EXISTING HOMES NEW HOMES SPREAD (BASIS POINTS) n.a ' RATE (IN PER CENT) SPREAD (BASIS POINTS) n.a YIELD (IN PER CENT) SPREAD (BASIS POINTS) DISCOUNT (PERCENTAGE POINTS) n.a. n.a. n.a n.a n.a. n.a. n.a SPREAD BETWEEN RETURNS ON NEW Aaa CONVENTIONAL UTILITY AND HUD(FHA) BOND NEW HOME YIELD MORTGAGES (IN PER CENT) (BASIS POINTS) n.a Gross yield spread is average mortgage return before deducting servicing costs, minus average yield on new issues of high-grade utility bonds with 5-year call protection. Rates on conventional first mortgages (excluding additional fees and charges) are based on unweighted HUD (FHA) field office opinions on prevailing contract interest rates in the market areas of the insuring offices, rounded to the nearest 5 basis points. For secondary market data, weighted HUD office opinions on the average bid price for HUD (FHA) loans with minimum downpayment, prepaid in 15 years, for immediate delivery, are used.

23 Table 16 FNMA AUCTION RESULTS HOME MORTGAGE COMMITMENTS GOVERNMENT-UNDERWRITTEN CONVENTIONAL DATE OF AUCTION AMOUNT (IN MILLIONS OF DOLLARS) OFFERED j ACCEPTED AVERAGE YIELD AMOUNT (IN MILLIONS OF DOLLARS) OFFERED ACCEPTED AVERAGE YIELD High 1155 (3/25) 333 (3/25) (9/9) I 164 (4/18) 63 (4/8) (9/9) Low 26 (11.18) 18 (11/18) 8.43 (2/2! i 14 (10/21) 7 (11/18) 8.47 (3/11: Jan Feb Mar Apr May , June July Aug , Sept , Oct Average secondary market yields are gross before deduction of the fee of 38 basis points paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for Federal National Mortgage Association (FNMA) commitment fees and FNMA stock purchase and holding requirements on 4-month commitments. Mortgage amounts offered by bidders relate to total eligible bids received. Digitized for FRASER