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
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Capital Market Developments · table 1 yields, volume and reception corporate bond market yields volume week ending new issue 1 recently 32 gross per cent new issues 4 aaa offereutility
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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 $.50 each. Address requests to Publications Services, Divi-sion of Administrative Services, and make payment remittance payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. Currency.
TABLES
1 - 6 SECURITY VOLUME AND YIELDS 7, 8 STOCK MARKET AND SECURITY
CREDIT 9 - 1 6 MORTGAGE MARKET
SYMBOLS e ESTIMATE p PRELIMINARY r REVISED n.a. NOT AVAILABLE
DATA DO NOT EXIST
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Table 1
YIELDS, VOLUME AND RECEPTION
CORPORATE BOND MARKET
YIELDS VOLUME WEEK ENDING NEW ISSUE 1 RECENTLY 2 GROSS 3 PER CENT NEW ISSUES 4
Aaa UTILITY OFFERED OFFERINGS SOLD BY END IN SYNDICATE Aaa UTILITY Aaa UTILITY ($ MILLIONS) OF WEEK ($ MILLIONS)
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
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.
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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
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
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Table 4
NEW CORPORATE SECURITY ISSUES BY TYPE OF ISSUE AND ISSUER
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.
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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.
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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
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10
Table 6B
FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS
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
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m
11
Table 6B Continued
FORTHCOMING INTERMEDIATE AND LONG-TERM PUBLIC SECURITY OFFERINGS
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
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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.
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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
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.
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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.
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.
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16 T a b l e 11
NET NEW MONEY BORROWINGS BY MAJOR HOUSING AGENCIES
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
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 .
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Table 14
PRIVATE HOUSING PERMITS, STARTS, COMPLETIONS, AND MOBILE HOME SHIPMENTS
IN THOUSANDS OF UNITS, SEASONALLY ADJUSTED ANNUAL RATES
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.
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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