Full text of H.16 Capital Market Developments : February 3, 1969
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DECOraOLLED AFTER SIX MONTHS (?api 4 « i CAPITAL MARKET DEVELOPMENTS Capital Markets Section, D i v i s i o n of Research and S t a t i s t i c s , Board of Governors of the Federal Reserve System, Washington, D, C. tnydjiJ- INDEX 3-5 x Developments in the Corporate and Municipal Bond Markets 6-7 C a p i t a l Market Y i e l d s 8-13 Capital Market Volume 14-17 . Stock Market 18-33 Mortgage Market ' TABLE 1: Yields, Volume and Reception CORPORATE BOND MARKET . ' VOLUME 2 PER CENT GROSS SOLD BY END BONDS SCHEDULED OF WEEK MOODY'S Aaa OFFERINGS WITHIN 28 DAYS YIELDS WEEK ENDING: NEW ISSUE 1 1968 - Jan. 3 10 17 24 31 6.55 6.58 6.59 6.59 6.59 6.90 6.93 6.92 6.92 1969 - Feb. 0 283 177 393 96 —— 67 r/52 57 t/81 172 844 718 700: 354 674 ; n.a. MUNICIPAL BOND MARKET VOLUME* 1 PER CENT SOLD BY END GROSS BOND BUYER OF WEEK 20 BOND INDEX OFFERINGS YIELDS WEEK ENDING: MOODY'S Aaa 1968 - Jan. 1969 - Feb. 3 10 17 24 31 4.57 4.58 4.58 4.58 4.60 ?£/ 4.85 4.85 4.83 4.82 4.91 14 385 371 194 jc/304 81 65 70 66 r/51 BONDS SCHEDULED WITHIN 28 DAYS 698 836 825 721 630 2/298 1 Derived by adjusting to an Aa@ 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. n. a.-- Not available. .V, TABLE 2: Details on Inventories AMOUNT (MIL. $) DATE OFFERED . 1/30 1/28 1/21 1/14 OFFERED CORPORATE BONDS IN SYNDICATE END OF LATEST.WEEK . . /• ORIGINAL • RATING AND YIELD CALL PROTECTION ISSUER COUPON 20.0 13.0 85.0 60.0 DATE | RELEASED Puget Sound Pwr. & Lt. Oklahoma Gas & Electric Virginia Elec. & Pwr. General Tele, of California DATE ' 1969 - Jan. 7-1/2 7-1/2 7-1/8 7-1/8 7.45 7.05 7.13 7.13 Bzla A;a A A 5 5 5 5 yrs. yrs. yrs. yrs. .90% 35% 90% 35% CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER COUPON IN YIELD CALL PROT. PORTION' RELEASED YIELD AMOUNT 1/30 1/29 1/29 1/29 1/28 1/23 1/21 1/14 , EST-xrlAXED PROPORTION SOLD 3 10 17 24 3l£/ N.C. - No call protection. others as of Friday; 13.0 75.0 40.0 25.0 • Gen. Tele, of Wisconsin So. Calif. Edison Public Svc. of Indiana Public Svc. of Oklahoma 7-1/8 7-1/8 7-1/8 7-1/4 7.,15 7.,06 7.,04 7.-20 INVENTORIES 1 MUNICIPALS BLUE LIST | IN SYNDICATE 541 526 r/533 r/528 561 129 190 207 176 250 +10 + 7 + 4 + 6 Aa Aa Ad . Aa 5 yrs. 5 yrs. 5 yrs. N,,C. CORPORATES IN SYNDICATE 1 p Daily average of three days ended Wednesday, in millions of dollars. 0 100 64 150 70 1 Blue List is daily average; 25% 60% 25% 35% BONDS IN SYNDICATE Millions of dollars : CORPORATE BONDS IN SYNDICATE 200 100 i i — ~ — i — i — i — i — i — T MUNICIPAL BONDS IN SYNDICATE T 300 200 100 . SEPT. DEC. '67 " JUN. 1968 SEPT, DEC. JUN. 1969 SEPT. DEC. DATE TABLE 3: High Grade Bond Yields / U.S. GOVERNMENT • 1 NEW CORPORATE 20-YEAR ' MOODY'S SEASONED CORPORATE ISSUES(ADJUSTED CONSTANT 1 2 Aaa TO Aaa BASIS) ' MATURITIES SEASONED STATE AND LOCAL .. GOVERNMENT Aaa 3 1966 - High Low 5.99 (9/2) 4.82(1/7) 5.52 (9/9) 4.73 (1/7) 5.04 (2/9) 4.50 (1/21) 1967 - High Low 6.55 (12/8) 5.11 (2/10) 6.24 (2/29) 5.00 (2/10) 5.73 (11/17) 4.48 (1/20) 4.15 (12/28) 3.25 (2/9) 1968 - High Low 7.02 (12/13) 6.13 (8/30) 6.53 (12/27) 5.95 (9/13) 5.90 (12/20) 5.18 (8/9) 4.57 (12/26) 3.80 (8/8) 6.94 6.93 6.94- . 6.92. 6.55 6.58 6.59 6.59 6.59/ 5.96 6.01 5.97 5.96 6.05 4.57 4.58 4.58 4. 58 4.60 1969 - Jan. 3 10 17 "24 ^31£/ p 1 2 3 \4.04 (8/25) 3.39 (1/10) Preliminary. ' Weekly average of daily figures. Average term of bonds included is 22-24 years. Weekly average of daily figures. Thursday figures. Only general obligation bonds are included; average term is 20 years. SOURCE: MOODY'S INVESTORS SERVICE Note--Highs and lows are for individual series and may be on different dates for dif. ferent series. HIGH GRADE BOND YIELDS Per cent NEW CORPORATE Aaa V MOODY'S ^ CORPORATE Aaa v U.S. GOVT. 2 0 - Y R . CONSTANT MATURITIES MOODY'S MUNICIPAL Aaa 1965 1966 1967 1968 1969 / TABLE 4: Long:term Corporate and State and Local Government Security Offerings and Placements (In millions.of dollars) NEW CAPITAL CORPORATE 1 PERIOD 1969p 1967 1969p 1,706 1,568 1,740 1,648 1,398 2,317 l,200e/ 1,000e/ April May June 1,385 1,825 2,334 1,973 1,474 2,611 July August September 2,091 1,394 1,497 October November December 1st Quarter 2nd Quarter 3rd.Quarter 4th Quarter January " February March 1968p STATE AND LOCAL 2 1,750e l,000e . 1st half Three quarters Year 1968Y/ 1967 1,138 1,156 1,394 1,482 .1,196 1,438 1,314 1,140 1,396 1,111 1,229 1,497 2,457 2,406 1,723 1.466 1,688 1,435 -43 858 1,300 e/1,900 e/1,675 e/1,850 2,289 1,467 2,336 2,227 997 1,112 974 1,400 1,182 5,014 5,544 4,982 e/5,425 5,364 6,058 6,584 6,092 3,698 3,850 4,589 4,336 4,119 3,837 ' 3,131 3,556 ' 10,558 15,540 e/ 20,965 11,421 18,007 24,098 8,925 12,127 £.'/16., 463 . 7,956 11,087 , 14,643 Excluding finance companies 3 1st 2nd 3rd 4th Year Quarter Quarter Quarter Quarter 4,943 5,265 4,882 j e p 1 2 Y 5,207 5,913 6,338 5,657 23,115 ' ... - Estimated by Federal Reserve. Preliminary. Securities and Exchange Commission estimates, .of net proceeds. Investment Bankers Association of America estimates- of principal amounts. Total new capital issues excluding offerings of sales and consumer finance companies. -—Note: Due to rounding components may not add. TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) QUARTER OR MONTH TOTAL 1967 - III ' IV 1968 - I II III . IV £ / 6,833 6,294 5,178 5,705 5,133 5,733 1967 - Dec. 1968 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. 2/ Dec. e. 2,385 1,771 1,607 1,800 1,428 1,867 2,418 2,144 1,433 1,556 2,099 .1,729 1,905 1 GROSS PROCEEDS FOR NEW CAPITAL AND REFUNDING 1 COMMON MEMO: ) AND BONDS PUBLICLY PRIVATELY V F p . ISSUES INCLUDED fSTOCK FOREIGN | CONVERTIBLE OFFERED PLACED 234 ' 1,632 678 4,604 1,551 93 1,327 1,051 3,107 2,137 313 584 989 2,465 1,724 172 758 956 3,105 1,644 124 1,037 2,606 1,166 1,361 n.a. n.a. 2,559 1,829 1,345 1,087 903 796 766 . 719 1,046 1,340 1,244 637 —725 1,016 938 605 1,020 546 585 593 438 521 685 528 400 433 574 355 900 278 322 226 441 271 300 385 372 396 398 509 436 400 30 16 61 236 31 89 52 47 49 28 24 49 n.a. 608 224 161 199 139 380 239 605 » 211 221 395 194 n.a. NET PROCEEDS FOR NEW CAPITAL MFG. PUBLIC UTILITY 1 COMMUNICATIONS 595 269 411 529 483 240 2,792 2,527 1,855 1,653 1,599 1,575 1,219 1,255 1,394 1,201 1,143 1,205 1,109 537 556 761 353 550 750 818 349 432 e/575 e/485 e/500 278 II 6 8 186 417 546 147 78 431 189 178 103 549 237 474 236 236 438 92 469 155 e/75 e/550 e/390 e?145 , e/20 e/250 2 OTHER ISSUES 1,976 2,040 1,356 2,159 1,758 2,455 881 566 321 469 663 622 874 801 515 442 e/700 e/655 e/1,080 pi Preliminary, e Estimated by Federal Reserve. 1 Gross proceeds exceed net proceeds by the cost of flotation. 2 For total see Table 4 ; other issuers are extractive, railroad and other transporation, real estate and finance, and coirpnercial and .'other;. SOURCE: Securities and Exchange Commission. Quarterly supplements are available. \ X, TABLE b: Large Long-term Public Security Issue^fqr New Capital. (Other than U.S., Treasury) v ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON RATE OR NET INTEREST COST OFFERING YIELD MOODY'S RATING Corporate Penria. Power & Light Co. 1st mtg. bds. 40.0 Northwestern Bell Telephone Debs. Company 75.0 Northern States Power Pfd. stk. 25.0 Cleveland Electric Illuminating Company 1st mtg. bds. 50.0 Conv. sub .debs .16.5 Famous Artists Schools 1st mtg. bds. 25.0 Duquesne Light Company Libby-McNeil & Libby Conv. sub .debs .15.0 Panhandle Eastern Pipeline Debs. 30.0 General Telephone of Calif. Debs. 60.0 Public Service Co, of , Indiana 1st mtg. bds. 40.0 Baystate Corporation Conv. debs. 15.0 Illinois Power Company Com.' stk. 19.0 . Surveyor Fund, Inc. Conv. debs. 20.0 Central Hudson Gas & Elec. 1st mtg. bds. 20.0 Virginia Electric & Power Company 1st mtg. bds. 85.0 S.S.I. Computer Corp. Debs. 15.0 Allegheny Power System Com. s t k . 34.5 Purex Corporation Conv. debs. 35.0 Public Service Co. of Oklahoma 1st mtg. bds. 25.0 Trans World Airlines ]onv. debs. 150.0 Southern Calif. Edison Co. 1st mtg. bds. 75.0 D.P.A. 3r. sub. debs. 15.0 Puget Sound Power & Light 1st mtg. bds. 20.0 Dallas Power & Light Pfd. stk. 20.0 1999 7 6.94 Aa 2008 7 6.95 Aaa Aaa B Aaa Ba A • A 1990 1988 1998 1989 1988 1999 7-1/8 5 ' 7 5 7-1/4 • 7-1/8 7.00 5.00 6.96 5.00 7.26 7.12 1999 1993 7-1/8 5 . 7.04 5.00 1983 1999 5 7-1/8 1999 1989 7-1/8 6-3/4 7.05 6. 75 Aa 1994 4-7/8 4.88 Baa 1999 1994 1999 1984 1999 7-1/4 5 7-1/8 6-3/4 7-1/2 7.20 5.00 7.06 6.75 7.45 Aa Ba Aa n. a. Baa • 5.00 7.12 Aa Aa TABLE 6: Large Long-term Public Security Issues for New Capital (Other than U.S. Treasury) (continued) ISSUER State & local Government State of New Jersey New York State Dormitory Authority Springfield, Illinois Los Angeles Convention and Exhibition Center Auth. Omaha, Neb., Public Power District Williamsport Area Jt. Sch. Authority, Pennsylvania State of Oregon Vigo Co. Sch. Bldg. Auth., Indiana New York City Houston, Texas Delaware River Joint Toll Bridge Comm. Fresno City, California U.S.D. New York City New York City State of Maryland Puerto Rico Salt River Proj. Agri. \ Impr. & Pwr. Dist., Ariz University of Texas San Francisco, California New York State Pennsylvania, State of Montgomery Co., Maryland Port of Seattle, Wash. Houston I.S.D., Texas Buffalo, New York FRASER Broward Co., Fla.,S.T.D.#1 Digitized for AMOUNT (MILLIONS OF DOLLARS) TYPE MATURITY COUPON RATE OR NET INTEREST COST During January, 1969 OFFERING YIELD MOODY 1 S RATING G.O. 75.0 1973-99 4. 49 3.95-5.15 Aa lev. -Rent. Rev. -Ut. 40.7 16.0 1971-2000 1972-98 5. 64 5. 00 4.25-5.70 4.00-5.00 A. Aa lev. -Rent. 20.5 1973-2003. 5, 71 4.40-5.70 A lev. -Ut. 20.0 1972-99 5. 03 i 4.00-5.25 Aa 3.0. 5.0. 12.0 30.0 1970-89/06 1983-85 5. 70 4. 57 lev. -S.T. 5.0. 5.0. 13.5 40.4 28.6 1972-86. 1970-74 1970-89 4.,82 5.,70 4.,73 lev. -Q.-Ut. 20.6 1970-84/91 n., a. 4.00-5.20/5.38 Baa 3.0. 5.0. 5.0. 5.0. 3.0. 16.2 61.5 38.5 55.8 50.0 1970-89 1970-99 1970-83 1972-84 1970-90 4.,65 5,,70 5.,70 4.,33 5.,12 3.75-4.75 4.50-5.75 4.50-5.75 3.90-4.40 4.05-5.20 Aa BaaBaaAaa A-l 26.0 25.0 30.7 83.0 75.0 20.0 20.0 12.0 15.1 20.0 1971-99 1972-05 1970-89 1970-99 1971-98 1970-89 1972-99 1970-89 1969-82 1971-88 3.90-5.25 4.15-5.40 3.80-4.60 3.80-4.75 3.90-4.93 3.90-4.90 4.20-5.50 3.90-4.90 3.70-4.50 4.10-5.10 A n. a. Aa . Aa Aa A A A Aa A , 3.0. lev. -Rent. 3.0. 3.0. 3.0. 5.0. lev. -Rent. 5.0. 5.0. 3.0. r 4.,85 5 .35 4,,50 . 4,,57 4,,94 4.,79 5,,32 •7° 4, , a. 5.00 3.90-5.40/5.70 4.45-4.70 4.00-5.00 4.50-5.75 3.90-4.85 n.a Aa Aa Baa-! A-l TABLE 6: Large Long-term Public Security Issues for New Capital (continued) (Other than U.S. Treasury)1 (continued) n„rln| ISSUER • • • Other TYPE . • ' 1 I 1 1 AMOUNT (MILLIONS OF DOLLARS) j COUPON RATE OR MATURITY NET INTEREST COST OFFERING YIELD MOODY'S RATING —/ Federal Land Banks Bonds 33.0 1970 6.70 6.70 Rights offering. Includes corporate and other security offerings of $15 million and over; State and local security offerings of $10 million and over. Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal Agencies. 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. TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)1 (continued) SSUER TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING Corporate Kansas City Power and Light 1st mtg. bds. 26.0 Company Duplan Corporation Conv. sub. debs 15.0 Manufacturers Bank of Detroitjjkmv. notes 15.0 Pfd. stk. 40.0 Philadelphia Electric Co. Conv. debs. 25.0 Forest Oil Corporation Texas Gas Transmission Debs. 50.0 Duke Power Company 1st mtg. bds. 75.0 Chesapeake & Potomac TetT^ 50.0 Debs. Co. (Wash.) • International Leisure Corp. Units 25.0 ^Continental Computer Associates . Conv. debs. 15.0 Owens Corning Fibreglass Debs. 30.0 ^Northern States Power Com. stk. 29.2 Conv. sub. debs., , 25.0 Sunshine Mining Pan American World Airways Conv. debs. 175.0 " 25.0 Instrument Systems Corp. Conv. sub. debs., Southern Company 65.0 Com. stk. *Neon Products of Canada Ltd. Conv; debs. 20.0 Pi lisbury Company Conv. debs. . 20.0 *State Street Bank & Trust Company Cap. notes . 20.0 Conv. debs. G.A.C. 70.0 *Del Monte Corporation Conv. debs. 30.0 *Gulf States Utilities 50.0 1st mtg. bds General Telephone of Mich. Debs. 22.0 Alco Standard Corporation 30.0 Com. stk. 20.0 Alexanders Dept. Stores Com. stk. 30.0 G.S.I. Computer Com. stk. Gamble-Skogrno, Inc. Cap. notes 20.0 Philadelphia Electric Pfd. stk. 40.0 .39.0 F. & M. Schaefer Corp. Com. stk. Tesoro Petroleum . Debs. 15.0 15.0 U.S. Financial Conv. debs. 20.0 Integrated Container Service Com. stk. Beneficial Finance Debs. 50.0 35.0 *Levin-Townsend Computer Cocp, Conv. sub. debs. February February February February February February February 4 4 4 4 5 5 6 February . 10 February 10 . February February February February February February February February February 11 11 11 (rts. 11 12 17 18 18 18 February 19 February 25 February 24 February 25 February Indefinite Indefinite Indefinite Indefinite Indefinite Indefinite Indefinite Indefinite Indefinite Indefinite Indefinite TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital As of January 31, 1969. ISSUER, TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING State & local Government State o & Vermont State of California State of Connecticut Tacoma, Washington Anne Arundel Co., Maryland Milwaukee Co., Wisconsin Los Angeles Dept. of Water and Power Fairfax Co., Virginia *Local Public Authorities Los Angeles Airport Comm.. Cobb Co., Georgia *Mass. Port Authority G.O. Rev. -Ut. G.O. Rev.-Rent. G.O. G.O. 30.0 97.9 60.0 16.0 12.0 11.6 February February February February February February .4 5 6 18 18 18 Rev.-Ut. G.O. Bonds Rev. -Rent. Rev.-Ut. Rev. -Rent. 21.0 17.2 159.5 60.0 32.5 105.6 February February February February February March 19 19 26 Debs. S.F. debs. 75.0 25.0 February February 3 20 Other * Province of Ontario * Province of Nova Scotia 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. Postponed were New York City*s $30 million issue and Columbus & Southern Ohio Electric f s $25.0 million issue. 14 TABLE 8: Stock Prices and Volume STOCK PRICES 1 S&P 500 3 DATE D.J. - IND. / . AMEX 4 TRADING1 VOLUME 2 NYSE AMEX 1966 - High Low 94.06(2/9) 995.15(2/9) 73.02(10/7) 774.32(10/7) 17.00(4/21) 12.07(10/7) 10.7(4/15) 5.0(9/23) 6.1(4/15) 1.3(9/23) 1967 - High Low 97.59(9/25) 943.08(9/25) .80.38(1/31 786.41(1/3) 24. 52(12/29] 13.78(1/27) 12.3(12/29) 6.9(1/6) 6.7(10/27) 2.1(1/6) 1968 - High Low 108.37(11/29) 985.21(12/3) 87.72(3/5) 825.13(3/21) 33.25(12/20) 22.00(3/22) 17.1(7/12) 8.2(3/29) 9.2(5/31) 2.9(3/29) 1969 - Jan. 3 10 17 24 - 31p/ 103.99 100.93 102.03 102.38 1 0 3 . 0 1 — .... p 1 951.89 937.22 935.54 938.59 946.05 32.91 31.52 31.98 32.60 32.66 11.9 13.4 11.7 11.8 11.9 6.8 6.6 6.2 r/6.7 7.9 Preliminary. . Figures, except highs and lows are Friday's only. Highs and lows are for the year and are not necessarily for Friday's. 2 Averages of daily trading volume on the New York and American Stock Exchanges. - Millions of shares. 3 1941-43 = 1 0 4 Based on actual dollar value, rather than a formula. STOCK PRICES AND TRADING VOLUME AM EX Weekly DJ. (Ind.) S&P (500) STOCK PR'CES AMEX PRICE LEVEL INDEX S&P's 5 0 0 1040 104 980 98 920 92 860 86 800 80 740 74 D J IND AMEX TRADING VOLUME 10 ill Jlii II i,i. !. 0 - N Y S E TRADING VOLUME 20 I'1' .. , ; 15 10 5 / / . v W v / v 1965 y: \ 1966 1967 0 1968 f TABLE 9: Stock Market Credit CUSTOMERS' CREDIT EXTENDED TO CUSTOMERS BY: NET DEBIT BROKERS 1. | BANKS 2 | TOTAL BALANCES END OF PERIOD NET CREDIT CUSTOMERS\ NET EXTENDED BY FREE CREDIT BROKERS AND DEALERS 3 BALANCES Outstanding: 1967 - Dec. 6)300 2,460 8^760 1968 - Jan. Feb, Mar. Apr. May June July Aug. Sept. Oct. Nov.j)/ Dec.2/ .6,170 6,150 6,190 6,430 6,640 6,690 6,500 6,460 6,390 6,230 6,300 2,430 2,420 2,370 2,350 2,360 2,410 2,420 2,490 2,520 2,560 2,630 2,710 8,600 8,570 , 8,560 8,780 9,000 9,100 8,920 8,950 8,910 8,790 8,930 Change in Outstanding: 1967 - Dec. 1968 - Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. £/ Dec.2/ 7,948 2,763 5,183 7,797 7,419 7,248 7,701 8,268 8,728 8,860 8,489 8,724 8,859 8,994 9,757 2,942 2,778 2,692 2,979 3,064 3,293 3,269 2,984 3,126 3,406 3,422 3,717 4,855 4,641 4,556 4,722 5,204 5,435 5,591 5,505 5,590 5,543 5,572 6,040 250 20 270 748 265 485 -130 -20 40 240 210 50 -190 -40 -70 160 70 n.a. -30 -10 -50 -20 10 50 10 70 30 40 70 80 -160 -30 -10 220 220 100 80 30 . -40 120 140 151 378 -171 453 567 460 132 -371 235 135 135 763 -179 -164 -86 287 85 229 -24 -285 142 280 16 295 -328 -214 -85 166 482 231 156 -86 85 -47 29 468 1 Margin debt, as reported by the New York Stock Exchange. Although margin debt until March 1968 included loans secured by U.S. governments, the amount of such loans included is thought to have been small. 2 "Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments." 3 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. TABLE 10: Savings. Flows',at' Nonbank Depositary Intermediaries, (S millions) DATE 1966 1967 1968 £/ 1967 - Oct. Nov. Dec. 1968 - Oct. Nov.r/ Dec. ]>/ 1968 - Aug. Sept. Oct. Nov. r/ Dec. £/ 1 2 3 p MUTUAL SAVINGS BANKS . NET REGULAR DEPOSITS 3 NEW .. ANNUAL 2 MONEY GROWTH, NET 1 RATE , FLOW 2,591 5,079 4,158 210 321 627 202 359 .670 319 356 364 r/397 335 4.9 9.3 7.0 -—— -t. - — . 6.2 6.8 6.9 r/7.5 6.3 Not Seasonally Adjusted ,552 3,656 3.3 6,136 10,686 9.1 2,676 5.9 7,333 227 2,376 1,139 495 582 1,612 495 . 648 1,579. 94 273 -17 89 293 -30 — —— -— SAVINGS • & LOAN ASSOCIATIONS " NET SHARE CAPITAL ANNUAL NEW •net' ' MONEY 2 GROWTH FLOW RATE 1 • 644 770 793 585 553 --- • -- -- 454 552 157 446 618 118 *•'. TOTAL DEPOSITS i NET NEW ANNUAL "• NET GROWTH MONEY 2 RATE 1 FLOW 6,247 15,765 LI,941 705 873 239 697 1,007 2,249 Seasonally Adjusted — 963 6.1 - - • 1,126 7.2 -1,157 7.4 5.5 981 • -888 5.1 3.8 9.2 6.3 -— -- -- 6.1 7.1 7.2 6.1 5.5 -325 8,512 3,815 548 825 147 535 911 -88 -- -- Annual growth rate for monthly data is the annualized monthly percentage increase in deposits Net New Money'is the net change in deposits net of both withdrawals and interest• Data for S&Ls are for insured associations only, which represent 967= of the total resources of the industry. 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, .Preliminary. r / Revised. SAVINGS FLOWS (seasonally adjusted) Monthly Millions of dollars 1200 800 SAVINGS & LOANS 400 800 400 MUTUAL SAVINGS BANKS 400 1965 1966 1967 1968 1969 TABLE 11: Mortgage Commitments at Selected Thrift Institutions DATE TOTAL OUTSTANDING COMMITMENTS ALL x MUTUAL SAVINGS SAVINGS & BANKS LOAN (N.Y. STATE) ASSOCIATIONS TOTAL 1 • NET CHANGE \ ALL , "\ SAVINGS &, \ . LOAN ASSOCIATIONS MUTUAL SAVINGS , BANKS (N.Y. STATE) (Billions of Dollars, Seaisonally Adjusted) 1/ .. '1 1967-Dec. 1968-Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. £/ 1 1 8.5 8.4 8.5 8.6 8.8 ^ 8.6 8.6 8.8 9.0 9.1 9.5 9.8 9.8 ' 5.9 5.8 5.9 6.1 6.2 6.1 6.0 6,1 6.2 6.2 6.5 6.6 6.7 2.6 2.6 2.5 2.5 2.5 2.6 2.6 2.7 2.9 2.9 3.0 3.2 3.1 -.04 -.05 .05 .18 .11 -.13 -.05 .19 .24 ai .35 .27 .03 .03 — .10 .16 .11 -.15 -.10 .11 .08 • 07 .22 .10 .12 • Based on data from Federal Home Loan Bank Board and Savings Bank Association Qf New York State; 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. -.07 -.05 -.05 .02 .0 .02 .06 .08 .16 .04 .13 .17 -.10 MORTGAGE COMMITMENTS OUTSTANDING (saar) Monthly Billions of dollars I ! ,; | | .| | 10 TOTAL S&L'S MSB'S 1 J_ 1959 1961 1963 I 1965 1969 TABLE 12: Itfet Change in Mortgage Holdings 1 DATE TOTAL INCLUDING FNMA TOTAL FINANCIAL INSTITUTIONS SAVINGS MUTUAL & SAVINGS COMMERCIAL LOANS BANKS BANKS LIFE INSURANCE COMPANIES FNMA - 1965 - I II III IV 4,761 6,365 6,469 6,303 4,813 6,431 6,403 5,947 823 1,749 1,805 1,322 965 946 1,072 1,078 1,860 2,706 2,460 1,947 1,165 1,030 1,066 1,600 -52 ~66 66 356 1966 - I II - HI. IV 5,413 5,671 3,953 3,088 4,618 5,120 3,445 2,619 975 1,656 1,300 774 753 513 739 715 1,671 1,674 350 86 1,219 1,277 1,056 1,044 795 551 508 469 1967 - I II III IV 2,623 4,896 6,275 6,290 2,273 4,790 5,696 5,528 151 1,200 1,751 1,537 770 786 839 758 492 2,147 2,585 2,364 860 657 521 869 350 106 579 762 1968 - Jan Feb. Mar. Apr. . May June July Aug. Sept. • Oct. Nov. Dec. 1,421 1,540 1,788 1,969 2,227 2,101 1,819 1,950 1/953 2,308 2,081 1,071 ! 1 1,236 i 1,514 1 1,723 1,992 . 1,881 j 1,667 1,809 | 1,845 2.147 1,936 n. a. 215 197 137 160 203 219 248 233 221 313 310 319 381 542 789 879 957 877 719 875 809 846 731 846 175 97 188 68 216 ,169 200 201 115 188 195 n. a. 350 304 274 246 235 220 152 141 1S3 161 145 172 300 400 400 616 616 616 500 500 700 800 700 400 . ' . 1 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 the Federal National Mortgage Associ,atipn. 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. ' NET CHANGE IN MORTGAGE HOLDINGS Monthly Billions of dollars TOTAL, INCL. FNMA 2.5 2.0 , 1.5 1.0 FINANCIAL INSTITUTIONS 1966 1967 1968 1969 QUARTER 1965 TOTAL TABLE 13: Net Increases in Mortgage Debt Outstanding (Seasonally Adjusted Annual Rate) 1- to 4- MULTIMULTI-AND RESIDENTIAL 2 FAMILY FAMILY COMMERCIAL COMMERCIAL* 25.5 25.3 25.7 18.6 3.5 3.5 3.8 3.8 4.2 4.5 4.4 4.6 14.7 c 4.3 3.3 2.3 6.1 26.2 19.6 15:1 15.1 15.5 15.8 1966 - I II III IV 29.1 23.617.7 14.6 19.0 15.3 12.1 9.2 8.3 7.2 1967 - I II II :v 16.2 28l0 9.9 13.7 19.1 20o9 27.7 18.2 I II I'll IV 1968 - I II ' II. IV 20.3 18.5 19.3 10.6 26.0 18.5 25.7 284 n. a. 18.0 6.8 10.5 15.3 16.5 16.3 14.6 14.6 n. a. 7.0 2.0 5.1 4.0 3.1 3.3 3.8 4.4 3;8 4.8 4.8 5.1 2.0 6.3 5.3 5.5 n. a. 3.9 -3.4 n. a. 8.0 FARM 8.1 2.2 2.1 8.3 7.9 2.4 11.7 9.4 7.7 5.6 2.2 2.4 2.2 2.1 1.7 7.3 1.8 8.8 1.9 2.4 8.0 8.8 2.6 -6.6 9.2 9.2 2.5 2.3 2.3 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 by Federal Home Loan Bank Board and the Federal Reserve. Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family and multifamily mortgage debt combined. E/ Preliminary. NET INCREASES IN MORTGAGE DEBT OUTSTANDING Quarterly Billions of dollars, seasonally adjusted annual rate 32 TOTAL TOTAL RESIDENTIAL I 1 - 4 FAMILY COMMERCIAL MULTIFAMILY 1965 1967 1969 TABLE 14: FNMA Weekly "Auction". Results .COMMITMENTS TOTAL TOTAL OFFERED " WEEK ENDED IMPLICIT YIELD2/ (per < IN $ MILLIONS ACCEPTED . 69061 -1 / 901YEAR & oMONTH Year&ov< >r DAY MONTti. DAY - Dec. 2 9 . 16 23 30 119.9 105.1 93.7 123.3 104.4 57.9 56.1 56.6 56.3 62.4 17.5 18.4 15.1 15.3 20.4 25.8 23.5 32.6 31.6 32.3 14.6 14.1 8.9 9.4 9.8 7.43 7.47 7.52 7.55 7.61 1969 - Jan. 6 13 21 27 82.1 127.5 124.3 232.9 59.8 57.9 61.4 61.0 16.9 . 8.1 9.8 8.4 28.4 36.7 39.1 38.6 14.5 13.0 12.5 14.1 7. 63 7.67 7.69 7.82 Feb. 3 7.46 7.51 7.57 7.60 x \ 7.65 '7.66 7.68 7-72 7.86 7.35 7.42 7.46 7.48 7.49 7 = 48 7.52 7.54 7.66 (75.0)-/ 1 . / ' . 1 Note: U n d e r the F N M A a u c t i o n s y s t e m , a p p r o v e d s e l l e r s bid for a p r e d e t e r m i n e d v o l u m e of F N M A forward p u r c h a s e c o m m i t m e n t s . These commitments, awarded to those s e l l e r s w h o s e b i d s a r e a c c e p t e d , a u t h o r i z e tiie s e l l e r to d e l i v e r G o v e r n m e n t - u n d e r w r i t t e n h o m e m o r t g a g e s to F N M A w i t h i n a s p e c i f i e d period o f time. F i n a l d e l i v e r y o f the m o r t g a g e is a t the o p t i o n o f the s e l l e r . 1 F o r "proposed c o n s t r u c t i o n " o f new h o m e s o n l y . Average secondary market yield after allowance for commitment fee and required purchase and holding 9f FNMA stock, assuming prepayment of 15 years for 30-year Government-underwritten mortgages. Yields shown are gross, before deduction of 50 basis point fee paid by investors to servicers. 3 FNMA announced limit of accepted bids for next week's auction. I! 2 7 FNMA WEEKLY "AUCTION" RESULTS $ Millions 120 A M O U N T OF ACCEPTED B I D S BY C O M M I T M E N T PERIOD 100 80 \ 6-MONTHS x y v 20 1 YEAR 9 0 DAYS IMPLICIT YIELD 6 - M O N T H COMMITMENTS 8.0 7.6 7.2 6.8 JUNE AUGUST 1968 OCTOBER DECEMBER FEBRUARY 1969 APRIL 5 TABLE 15: Private housing starts and Permits STARTS SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE TOTAL 1,250 797 453 80.1 1,456 Feb. 1,537 1,511 Mar. 1,591 • Apr. May 1,364 1,365 June July ' 1,531 Aug. 1,5-18 Sept. 1,592 Oct. 1,570 Nov. 1,717 1 Dec. 1,454 912 1,075 920 922 838 790 904 867 944 965 897 891 544 462 591 669 526 575 627 651 648 605 820 563 80.5 84.6 126.6 162.0 140.9 137.9 139.8 136.6 134.3 140.8 125.7^ 93.0 ' DATE 1967 - D e c . 1968 - Jan. 1 2 UNADJUSTED . TYP E OF FINANCING FHA VA . OTHER 3.6 60.8 13.9 3.4 17.0 4.1 19.6 .4.5 22.6 5.4 20.5 5.5 19.8 5.0 18.8 4.9 20.9 4.8 18.6 4.6 21.4 5.3 17.5 4.2 16.4 4.4 63.2 63.5 102.4 134.0 114.9 113.1 116.2 110.9 111.1 114.0 104.0 72.2 15.7 BUILDING PERMITS (SEASONALLY ADJUSTED ANNUAL RATE) 2 1,368 1,148 1,394 1,416 1,340 1,280 1,281 1,289 1,290 1,393 1,378 1,425 1,400 , Tvral. starts are Census estimates including farm for both permit-issuing and non-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 shafted 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. Capehart military housing units are excluded. 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 before January 1963 are Census estimates for about 10,000 areas identified- as having a local building permit system in' 1959. Estimates beginning January 1963, are for approximately 12,000 and beginning January 1967 13,000, or all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per month, as well as other differences in timing and coverage. r Revised. p Preliminary. • PRIVATE HOUSING STARTS AND PERMITS Monthly, annual rates - o Millions of units SEASONALLY ADJUSTED DATA 2.0 1.6 HOUSING STARTS 1.2 BUILDING PERMITS (in issuing areas) f CHANGE IN SERIES PER CENT OF UNADJUSTED TOTAL STARTS MULTI-FAMILY GOVERNMENT UNDERWRITTEN 1963 1965 1967 1969 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES 2 DATE 25 -YEAR 30-YEAR 1957 - High -1958. - Low 1959--60 - High 1961-66 - Low 1966 - High 1967 - High Low 1968 - H i g h . Low 1968 - Aug. Sept. Oct. Nov. Dec. 5 .63 5 .35 6 .24 5,.43 6,.73 CONVENTIONAL MORTGAGES 3 .a. 5.44 6.81 6.81 6.29 7.52 6.78 6.00 5.55 6.30 5.80 6.70 6.65 6.40 7.30 6.75 a. a. n.a. n. a. n. a. 7.35 7.28 7.29 7.36 7.50 7.30 7.30 7.25 7.30 7.40 SPREAD BETWEEN YIELDS ON C0NV. & . FHA MORTGAGES 4 . .47 .15 .23 .25 .30 .11 -.12 . .02 -.27 1 NEW Aaa CORPORATE BONDS 5 4.94 3.65 5.25 4.41 5.82 r/6.51 r/5.18 r/6.79 r/6.15 SPREAD BETWEEN YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES 1.58 .88 1.69 .77 1.16 r/1.28 r/ .27 r/1.2.0 r/ .26 -.05 r/1.20 r/6./15 .02 r/6.27 r/1.01 r/ .82 r/6.47 -.04 r/6.61 r/ .75 -.06 r/6.79 r / .71 -.10 l- Neither mortgage nor bond yields take into account servicing costs"which are much higher for mortgages than 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 table. 2 . Based on FHA-field-office opinions about average bid prices in the private secondary market for new-home mortgages for immediate delivery. Separate data available for 25-year and--beginning July .1961 —30-year mortgages with minimum downpayments, weighted by probable volume of transactions. Yields computed by FHA, assuming prepayment period of 12 years for 25-year mortgages and 15 years for 30-year mortgages. Over the. period for which they can be compared, the movement of the two mortgage yield series has been similar. Dashed lines indicate periods of adjustment to changes in contractual interest rates. , 3 Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring, office cities. Beginning with April 1960, rate relates only to new-home mortgages; prior "to that date, rate related to both new as well as existing-home mortgages. Dashed line indicates this change in the series. 4 FHA-mortgage yield data are for 25-year mortgages through June 1961; 30-year mortgages thereafter. 5 See note for Table 1. (Data prior to 1965 is based on a composite of issues with and without call protection.) n.a. Not available. M O R T G A G E A N D B O N D YIELDS Percent Monthly TTTTTT H O M E MORTGAGES: A a a C O R P O R A T E BONDS: 1961 1963 1965 1967 1969 TABLE 17: Conventional Mortgage Terms NEW HOMES CONFEES & T R A C T CHARGES EFFEC- MATURITY DATE ' RATE - (PER (YEARS) TIVE (PER CENT). RATE CENT) 3 2 LOAN/ PRICE LOAN RATIO AMT. (PER ($000) CENT) - 1 EXISTING HOMES CONFEES & LOAN/ T R A C T CHARGES EFFEC- M A T U - PRICE (PER RATE TIVE RITY RATIO (PER C E N T ) RATE (YEARS) (PER CENT) CENT) 2 3 LOAN AMT. ($000: 1967 Dec. 1968 . 6.41 0.84 6.54 25.4 6.52 6.62 6.64 6.71 6.84 7.03 7.17 0.87 - 7.24 0.87 7.24 .0.88 7.23 0.84 7.21 /.23 0.89 25.4 25.5 25.7 25.3 25.0 'Jr,. 4 25.5 25.5 25.5 25.6 25.4 26.0 11.1 21.5 6.51 72.9 21.7 74.5 74.3 73.4 73.2 74.4 73.7 22.2 6.57 6.58 0.83 6.64 23.1 73.1 18.4 22.7 22.6 23.0 73.7 73.6 73.3 72.8 73.1 73.1 72.6 73.0 72.6 7.07 0.82 - 6.70 0.81 6.71 6.72 0.79 0.-80 6.77 0.87 6.95 0.86 7.12 0.83 7.23 7.26 0.85 0,82 7.25 0.84 7.22 7.21 0.82 18.4 18 i0 18.-6 18.3 18.5 18.4 18.6 .18.7 18.4 18.5 19.1 7.09 0.85 - 6.39 Feb;. 6.47 M a r v . 6.50 Apr c 6.57 May 6.69 June 6.88 July 7.04 Aug, •7.10 Sept. 7.10 Oct". 7 c 09 Nov.r/ 7.07 Dec.2/ 7.09 0.86 0.94 0c 88 0.88 0.95 0.95 0.85 73.6 74.2 74.5 ?4„ 1 7,4.0 22.4 22.2 22.1 22.6 22.5 22.8 22.5 . 23. 1 22.7 25.0 6.59 6.64 6.81 6.97 7.10 7.12 7.11 7.09 7.23 22.6 22.5 22.6 22.5 22.7 22.6 22.5 • 72.4 22.7 23.4 72.9 73.2 r .1 Revised. p Preliminary. Compiled by Kedeia I 'ionic Loan Bank Boat d in uooperation with Federal Deposit Insurance Corporation. Data are w e i g h t e d 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--in this exh i b i t.--permanent loans which are ooupled with construction loans to owner-builders. D a t a prior to 1965 on a comparable basis with the new series are pending. Related s c r i e s on conventions! mortgage rates only, based on unweighted opinion's of r e g i o n a l - o i f i c e 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 & chavu.es amortized over a 1-0 .year period in addition to the contract interest rate. ' : 20.6 ' 33 CONVENTIONAL MORTGAGE TERMS Monthly 30 MATURITY NEW EXISTING 80 LOAN/PRICE RATIO NEW EXISTING 70 1963 1965 1969 1967 * CHANGE IN SERIES 1