Full text of H.16 Capital Market Developments : May 26, 1969

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DECONTROLLED AFTER 8 H MORTBS

CAPITAL
MARKET _____
DEVELOPMENTS

C o p i t g l 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.




INDEX

3-5

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
MOODY'S Aaa OFFERINGS
OF WEEK
WITHIN 23 DAYS

YIELDS
WEEK ENDING:
NEW ISSUE 1
1968 - Apr. 11
18
25
May

2
9
16
23
30 e/

7.30
7.02

6.97
6.88
6.81

--

7.18
7.10
7.08
7.28
n. a.

6.80
6.79
6.75
6.78

307
176
372

100
95
79

227
184
374
r/197
130e

96
88
85
r/78
n.a.

548
437
478
870
630
983
926
n.a.

MUNICIEAL BOND MARKET
VOLUME 2
PER CENT
BONDS SCHEDULED
SOLD BY END
GROSS
BOND BUYER
OF WEEK
WITHIN 28 DAYS
20 BOND INDEX OFFERINGS

YIELDS
WEEK ENDING:

1968 - Apr. 11
18
25
May

2
9
16
23
30e/

MOODY'S
Aaa
5.08
5.00
4.95
4.95
4.95
5.10
5.30
n.a.

-

5.29
5.13
5.09
5.10
5.17
5.31
5.46
n.a.

420
345
415
191
r/185
~ 267
r/352
250e

„

87
69
71

791
705
550

59
54
64
r/63
n.a.

770
886
943
527
n.a.

1 Derived by adjusting to an Aap 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, an^bonds guaranteed by the Federal Government.)
/'
2 Millions of dollars unless otherwise indicated.
n. a.-- Not available.
Estimated.




X
TABLE 2: Details on Inventories
DATE
OFFERED .
5/22
5/20
5/20
5/19
5/16

AMOUNT
(MIL, $)
30
25
8
25
50

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND
YIELD CALL PROTECTION
COUPON
ISSUER
Houston Light & Power
7-1/2
7.375 Aaa 5 years
Pacific Bower & Light 1st
8
7.85
Baa 5 years
Interstate Pwr. 1st
7.65
7-3/4
A
5 years
Kentucky Utilities 1st
7-5/8
7.50
Aa
5 years
Southern National Gas Debs4
7-65
7.65
Aa
5 years

ESTIMATED PROPORTION SOLD
33%
50%
35%
75%
80%

I

DATE.
OFFERED | RELEASED
5/14

5/19

40.0

Wisconsin Elec. Pwr.

7-1/4

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
1969 - Apr.
May

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROCOUPON
ISSUER .
AMOUNT
IN YIELD CALL PROT. PORTION RELEASED
YIELD

25
2
9
16
23£/

457
513
520
r/583
~ 553

110
132
r/159
7/198
215

N.C. - No call protection, p Daily average of three days ended Wednesday.
others as of Friday; in millions of dollars, r/ Revised.




7.25

18

Aa

5 yrs.

CORPORATES
IN SYNDICATE

1

93
76
59
44
54

i Blue List is daily average;

50%

BONDS IN SYNDICATE




Millions of dollars

I I .1 lllllll ill

JUN.

1968

DEC.

MAR.

JUN.

1969

SEPT.

DEC.

•

'
'
TABLE 3: High Grade Bond Yields

NEW CORPORATE
MOODY'S SEASONED
ISSUES(ADJUSTED !
CORPORATE
Aaa 1
TO Aaa BASIS)

DATE

••:

'

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 2

'

\
SEASONED
STATE AND LOCAL
GOVERNMENT
Aaa 3

1967 - H i g h
Low

6.55(12/8)
5.11(2/10)

6.24(2/29)
5.00(2/10)

5.73(11/7)
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(1/27)
5.95(9/13)

5.90(1/20)
5.18(8/9)

4.57(12/26)
3.80(8/8)

1969 - High
Low

7.57(3/21)
6.90(2/21)

6.99(4/3)
6.55(1/3)

6.27(3/21)
5.96(1/24)

5.30(5/22)
4.57(1/2)

7.07

6.81

5.95

4.95

1969 - A p r .

25

May

.' 2
7.18
6.80
5.98
4.95
9
7.10 ...
6.79
5.92
'
4.95
16
7.08
r/6.01
6.75
5.10
23p/
7.28
6.78
6.01
5, i n
p
Preliminary, r / Revised.
V
Weekly average of daily figures. Average term of bonds included is 22-24 years.
•2
Weekly average of daily figures.
3
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 different series.




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa

MOODY'S
V*
CORPORATE Aaa

U.S. GOVT. 20-YR.
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)
GROSS PROCEEDS
CORPORATE1

PERIOD

January
February
March
April
May
June

1969p

1968p

1967

1969 p

1968p

1967

r/2,075
r/2,045
2,098

1,771
1,608
1,799

1,684
1,418
2,362

1,260
986
525

1,178
1,158
1,404

1,492
1,236
1,450

1,428
1,866
2,411

2,015
1,518
2,674

1,625e/
9751/
900e/

1,318
1,143
1,395

1,130
1,254
1,497

2,143
1,432
1,557

2,589
2,481
1,763

1,469
1,699
1,444

950
860
1,340

6,218
6,810e/

2,129
1,7.67
2,054

2,409
1,500
2,385

2,230
1,021
1,115

975
1,401
1,182

6,218
6,810e/

5,178
5,704
5,133
5,950

5,464
6,208
6,832
6,294

3,740
3,856
4,612
4,366

4,177
3,881
3,150
3,557

10,882
16,015
21,965

11,672
18,504
24,798

7,956
12,008
16,574

8,059
11,209
14,766

2,410*/
2,100%/
2,300e/

July
August
September
October
November
..December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
.Three quarters
Year

STATE AND LOCAL 2

2,771
3,500e/

Excluding finance companies 3
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

5,308
6,063
6,584
5,859
23,814

Year
e
p
1
2
3

5,107
5,427
4,785

Estimated by Federal Reserve.
Preliminary.
Securities and Exchange Commission, estimates. of gross proceeds.
Investment Bankers Association of America•estimates of principal amounts.
Total new capital issues excluding offerings of sales and consumer finance
companies.




TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

QUARTER
OR '
MONTH
1968 - I
II
III
IV
1969 - I
lie/
1968 - Apr.
May
June
July
Aug.
Sept
Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr. e/

TOTAL
5,178
5,705
5,133
5,951
6,218
1,428
1,867
2,418
2,144
1,433
1,556
2,129
1,767
2,055
2,075
2,045
2,098
2,360

GROSS PROCEEDS BY TYPE
OF ISSUE
COMMON
AND
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
OFFERED
PLACED
STOCK
FOREIGN
CONVERTIBLE

hm

1,724
1,644
1,361
1,922
1,539

989
956
1,166
1,474
2,023

313
172
124
113
215

584
758
1,037
902
1,355

719 '
1,046
1,340
1,244
637
727
1,009
939
607
r/ 980
842
835
1,260

438
521
685
528
400
433
595
362
965
r/636
r/395
508
500

271
300
385
372
396
398
525
466
483
jr/460
r/808
755
600

31
89
52
47
49
28
24
49
40
r/103
74
38

139
380
239
605

2,465
3,105
2,606

211

221
365
211
326

r/376
r/578
401

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

OTHER
ISSUERS 1

1,907
1,703
657
1,712
1,407

1,442
1,244
1,160
1,435
1,346

422
536
490
319
473

1,407
2,223
1,825
2,483
2,991

373
563
767
843
362
453
640
421
651
r / 403
r/513
491
430

180
557
507
239
446
475
674
443
319
627
Mr/315
r/404
520

192
104
239
239
95
156
115
162
41
186
56
231
50

683
642
898
822
530
472
700
741
1,044
r/860
r/1,161
970
1,360

p
Preliminary.
e Estimated by Federal Reserve. 1 Other issuers are extractive, railroad and
other transportation, real estate and finance, and commercial and other. SOURCE: Securities and Exchange Commission. Quarterly supplements are available.




TABLE 6: Large Long-term Public Security issues for New Capital
(Other than U.S. Treasury) .

ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

May 1 through May 23, 1969.
COUPON
\
RATE OR
OFFER- MOODY'S
RATING
NET INTERING
EST COST
YIELD

Corporate
Columbus & Southern Ohio
Electric Company
Union Electric Company
Teledyne, Inc.
Western Union Telegraph Co.
C. & P. Telephone Co. of
West Virginia
Hoener Waldorf Corp.
Tappan Company
V
Homestake Mining Co.
Southern Natural Gas Co.
Burroughs Corp.
Fruehauf Corp.
Cincinnati Gas & Elec. Co.
Hammermill Paper Co.
Wisconsin Electric Pwr. Co.
U . S . Realty Investment
Mid-Continent Realty Corp.
Pacific Pwr. & Lt. Co.
Kentucky Utilities Co.
Tandy Corp.
Dial Finance
American Enka Corp.
Houston Lighting & Pwr. Co.




Debs.
1st mtg. bds.
Debs.
Com. stk.

25.0
35.0
30.0
65.0

1999
1999
1994

7-5/8
7-3/8
7-7/8

7. 50
7. 25
8.00

Debs.
Conv. debs.
Conv. debs.
Com. stk
Debs.
Conv. debs.
Conv. debs.
1st mtg. bds.
Conv. debs.
1st mtg. bds.
Conv. debs.
Conv. debs.
1st mtg. bds.
1st mtg. bds:
Conv. debs.
Debs.
Conv. debs.
1st mtg. bds.

40.0
30.0
20.0
18.9
50.0
100.0
60.0
50.0
30.0
40.0
20.0
16.0
25.0
25.0
35.0
15.0
45.0
40.0

2009
1994
1994

7-1/4
5
5-1/2

7. 20
5.00
5. 50

Aaa
Ba
Ba

1972
1994
1994
1999
1994
1999.
1989
1989
1999
1999 .
1989
.1989
1994
1999

7.65
4-5/8
5-1/2
7-3/8
5
7-1/4
5-3/4
5-1/2
8
7-5/8
5
8-1/4
5-1/4
7-1/2

7. 65
4. 63
5..50
7.,20
5.,00
7.,25
5.,75
5,,50
7. 85
7. 50
5.,00
8.,25
5.,25
7..375

A
Baa
Ba
Aaa
Ba
Aa

\
*

A

Aa.
Baa

—-

Baa
Aa
Ba
Baa

!

.

TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury)1
May 1 through M a y 2 3 1 9 6 9.

ISSUER

.

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

State & local Government

4.82
4.00-5. 40
12.0
1970-94
Winston-Salem, IT. C.
Aa
G.O.
4.98
4.10-5. 05
11.5
1970-84
Hawaii, State of
A
G.O.
4.00-5. 30
1970-89
4.92
12.0
Aa
Madison, Wisconsin
G.O.
1970-99
5.74
5.10-5. 85
35.0
Baa
Denver, Colorado
Rev.
North Penna. Sch. Dist.
5.70
6.5
5.75
Rev.
1999
Auth., Penna.
A
North Penna. Sch. Dist.
,60
5.70
4.10-5.
1970-91
8.4
A
Auth., Penna.
Rev.
5.02
4.10-5.,40
42.9
Delaware, State of
A
G.O.
-23.5
5.34
4.25-5.,60
Prince George's Co., Md.
1970-94
A
G.O.
5.65
4.25-5..70
15.0
1970-89
Alabama Highway Authority
Rev.
A-l .
4.70-5,.25,6 N.R.
40.0
Hawaii, State of
Rev.
1972-79,,1994 5.93
5.07
4.20-5 .20
1970-89
Aa
11.9
Worchester, Mass.
G.O.
5.20-6 .40
6.49
1980
35.0
Rev.
Cobb County, Ga.
'
4.25-5
.55
Aaa
1970-2009
182.3
Bonds
H.A.A.
Nashville & Davidson Co.
4.70-5 .70
5.89
1984
A
11.0
Rev.
Metro. Gov't., Tenn.
Other 2/
7-3/4
7.87
1974
Debs.
Quebec, Province
of
8.00
7.87
35.0
1999
Debs.
Ouebec. Provin<?pl
Rights offering. N.R. -- Not rated.
Includes corporate and other security offerings of $15 million and o v e r ; 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 bond^ 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
f Mav 23. 1969.

ISSUER

AMOUNT
(MILLIONS
OF
DOLLARS)

TYPE

APPROXIMATE DATE
OF OFFERING

Corporate
Jersey Central Pwr.&Lt. Co. 1st mtg. bds.
Southern New England Tele.Co Debs.
1st mtg. bds.
Long Island Lighting Co.
1st mtg. bds
Va. Electric & Power Go.
Va. Electric & Power Co.
Pfd. stk.
Bds.
^Virginia Elec. & Pwr.
^
1st mtg. bds
Consumers Power Co.
Rev.
Perina. Electric Co.
1st mtg.
Penna. Power & Light Co.
*Colorado Interstate Corp.
Bds.
Debs.
Beneficial Finance
Wisconsin Power & Light
1st mtg.
1st mtg. bds .
Florida Power & Light Co.
1st mtg. bds,
Illinois Bell Tele. Co.
Indiana & Michigan Elec. Co.Bonds
South Carolina Elec. &
Rev.
Gas Co.
1st mtg.
Washington Gas Light Co.
1st mtg.
West Penna. Power Co.
Pfd. stk.
Consumers Power Co.
1st mtg. bds.
D'uquesne Light Co.
Rev.
Hawaiian Telephone Co.
Conv. debs.
Vernitron Corp.
Conv. debs.
Performance Systems Inc.

-

May
May
May
June
June
J une
June
June
June
June
June
June
June
June
June

33.0
65.0
40.0
75.0
35.0
75.0
50.0
28. 0
40.0
30.0
50.0
25 . 0
50.0
150.0
60.0
35.0
20.0
25.0
35.0
30.0
25.0
20.0
15.0

r

'

26
27
28
3
3
3
4
5
9
10
10
10
12
17
18

June 19
June 23
June 24
June 25
June 25
June 26
Indefinite
Indefinite

State & local Government
G.0.
Ohio, State of
*Penna., State of
G.0.
G.0.
New Hampshire
Wheeler Ridge Maricopa Wtr.
Rev.
Dist., California
G.0.
Phila. Sch.-Dist., P4.
G.0.
Albany Co., N. Y.
Rev.
*0cala, Florida.
Los Angeles Dept. of
Rev.
Wtr. & Pwr.
G.0. & Rev.
Jefferson Parish, La.
Rev.
^Tallahassee, Florida
Rev.
Shreveport, La.
G.0.
*NaSsau Co., New York
G.0.
Richmond, Virginia
*Dallas I.S.D., Texas
iG.0.




27
27

75, .0
78..0
36..5

May
May
May

13..0
30..0
70..0
16.,1

June
June
June
June

1
3
3
3

39. 0
17.,5
12. 0
14.,0
42. 1
17. 0
12. 0

June
June
June
June
June
June
June

4
5
10
10
10
11.
11

<

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)!
.
-

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State & local Gov't.
(Continued)
Penna. Higher Education
Facilities Auth.
King Co., Washington
^University of Calif.
Newark, New Jersey
Minnesota, State of

G.O.
G.O.
Rev. Bd.
G.O.
G.O.

22.1
28.3
16.2
20.5
33.8

June 17
June 17
June 18
June 24
Indefinite

Other
City of Edmonton
*F ,M.N. A. '
Canadian Pacific Railway
Co.
Tennessee Valley Auth.
*Argentine Republic
*Alberta Gov't. Tele. Comm.

S.F. debs.
Debs.

25.0
200.0

May
May

28
28

Equip.
Rev.
Bds.
Debs.

30.0
100.0
25.0
30.0

J une 3
June 3
June 17
June 11

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.




TABLE 8: Stock Prices and Volume
TRADING VOLUME T

STOCK PRICES 1
DATE

S&P,

500
1967

-High
Low

AMEX

NYSE

AMEX

943.08(9/25)
786.41(1/3)

24.52(12/29
13.78(1.27)

12.3(12/29)
6.9(1/6)

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)
13.5(5/9)

92.(5/31)
8,0(1/31)

1969 - High
Low

105:94(5/16)
97.98(2/25)

968.85(5/14)
899.80(2/25)

32.91(1/3)
29.46(3/7)

13.5(5/9)
9.2(2/14)

8.0(1/31)
3.8(2/14)

1969 - Apr. 25 101.72

924.00

30.09

11.3

4.9

2 104.00
9 105.05
16 105.94
23dli.04.59

957.17
961.61
967.30
947.45

30.93
31.26
31. 28
31.11

14.5
13.5
12.4
11.4

7.3
7.7
6.5
5.6

May

97.59(9/25)
80.38(1/3)

6.7(10/27)

Preliminary.
Figures, except highs and lows are Friday's only. Highs and lows are for the
year and are not necessarily for Friday's.
Averages of daily trading volume on the New York and American Stock Exchanges.
Millions of shares.
1941-43 = 10 .
=Based on actual dollar value, rather than a formula.




STOCK PRICES AND TRADING VOLUME
D.J.
dnd.)

S&P
(500)

STOCK PRICES

AMEX PRICE LEVEL INDEX

AMEX TRADING VOLUME

NYSE TRADING VOLUME

1965

1966




1967

1968

1969

1040

104

980

98

920

92

860

86

800

80

740

74

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:
1968 - Mar.
6,190
Apr.
6,430
May
6,640
June
6,690
July
6,500
Aug.
6,460
Sept.
6,390
Oct.
6,250
Nov.
6,200
Dec.
.6,200
1969 - Jan.
5,930
Feb.
r/5,750.
Mar.
r/5,600
Apr. £/ " 5,630

2,370
2,350
2,360
2,410
2,420
2,490
2,520
2,560
2,630
2,710
2,750
2,810
2,781
2,763

8,560
8,780
9,000
9,100
8,920
8,950
8,910
8,810
8,830
8,900
8,680
r/8,560
r/8,381
8,393

7,248
7,701
8,268
8,728
8,861
8,489
8,724
8,859
9,029
9,970
9,107
9,148
r/8,318
8,044

2,692
2,979
3,064
3,293
3,269
2,984
3,126
3,407
3,419
3,717
3,597
3,647
3,294
3,077

4,556 i
4,722 !
5,204
5,435
5,592
5,505
5,590
5,452
5,610
6,073
5,510
5,501
r/5,024
4,967

-

Change in ,
Outstanding:
1968 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr.
1
2
3.

40
240
210
50
-190
-40
-70
-140
-50
——

-270
-180
-150
+30

-50
-20
10
50
10
70
30
40
70
80
40
60
-29
-18

-10
220
220
100
-180
30
-40
100
20
80
-220
-120
-179
+12

-171
453
567
460
133
-371
235
135
170
761
-683
-51
-830
-274

-76
287
85
229
-24
-285
142
281
12
298
-120
50
-351
-217

-85
166
482
231
156'
-86 85
-138
158
563
-501
-9
-477
-57

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.
"Bank loans to others than brokers and dealers for purchasing or carrying securities other than U.S. governments."
The difference between customers' net debit balances and customers net free credit balances, this figure represents the net credit extended by brokers and
dealers to the nonfinancial public. NOTE: With the exception of bank loan data,
figures are supplied by the New York Stock Exchange and are end of month data.
Bank loans are for weekly reporting large commercial banks.




TABLE 10: Savings Flows at Nonbank Depositary Intermediaries
($ millions)
MUTUAL SAVINGS
REGULAR DEPOSITS
ANNUAL
GROWTH
N ET •
RATE 1
FLOW

DATE

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

5c LOAN ASSOCIATIONS
SAVINGS ,
BANK&
NET
NET
SHARE CAPITAL
3
NEW .
ANNUAL'
NEW ,
\
NET
GROWTH
MONEY 2
\ MONEY?
1
FLOW
RATE
Not Seasonally Adjusted

1966
1967
1968

2,557
5,082
4,186

!

350
645
-75

1968 - Feb.
Mar.
Apr.

331
642
-200

Feb.
Mar.
• Apr. 2./

4.9
9.3
7.0
__
—

--

• 395
362

1969 - Jan.
Feb.
Mar.
Apr. 2/
1
2
3

p
*

'

220
384
382.
157

\

227
2,376
1,143

... 3,584
10,687
7,396

3.2
9.4
5.9

-552
6,129
2,676

301
117
-189

584
1,275
-294

——

559
541
-324

934
1,920
-369

860
658
-513

264
81
-325

605
r/1,3 70
r/ -492

569
r/524
r/- 536

. 986
r/2,012
1 r/-692

833
r/605
r/-8 61

—
--

__
—
--

Seasonally Adlusted
1968 - Nov.
Dec.

NET
NEW "
MONEY 2

7:5
6.8

. 620
620

4.1
7.2
7. 1
Z.9

523
4.8
582 ' r/5.3
r/3 95 "r^.lr/2 14 r/1,9 .

---

5.7
5.7

|

6,141
15,769
11,582

3.8
9.4
6.3

'

-325
8,505
3,819

1.
——
-__

I ——
--

1,015
982
743
966
rA,2 77
r/ 3.71

6.3
6.1
4.6
5.9
r/7.8
r/2.2

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 96% 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.
1
.S&L series reflects FHLB revisions of data shown here through 1968.




--

SAVINGS FLOWS (seasonally adjusted)
Monthly

-

-

Millions of dollars

2000
1600
.TOTAL

1200
800
400

400

/

X SAVINGS & LOANS

'

—

—

-

1

1

I II 1 ! M 1 1 ! 1 1 I 1 1

/ ^ - v N I U T U A L SAVINGS BANKS
-

1
1965

1
1966




1 1 I t 1 1 1 1 1 1 1 1 1 1 II I 1 II 1 1 1 1
1967

1968

1969

TABLE 11: Mortgage Commitments at Selected Thrift Institutions
OUTSTANDING COMMITMENTS
MUTUAL
ALL
SAVINGS
SAVINGS', &
BANKS
. LOAN
(N.Y. STATE)
ASSOCIATIONS

DATE

TOTAL

NET CHANGE
. ALL
SAVINGS &
LOAN
ASSOCIATIONS

(Billions of Dollars, Seasonally Adjusted)

1968- Apr*
May
June
July
Aug.
Sept.
Oct.
Nov.
Den.
1969- Jan.
Feb.
Mar. 2/
Apr. jj>/

8.7
8.6
8.6
8.8
9.0
9.1
9.5
9.7
9.7

6.2
6.0
5.9
6.1
6.1
6.2
6.4
6.5
6.6

2.5
2.6
2.6
2.7
2.9
2.9
3.0
3.2
3.1 •

9.9
10.1
10.3
10.5

6.7
6.9
7.0
7.2

3.2
3.2
3.3
3.3

•14 •
-.13
-.04
.24
.16
.14
.35
.27
-.01
.15
.25
.17
. 18

1

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

1/

.14
-. 16
-.10
.16
. 10
.22
.10
.08
.08
i 22
.09
.17

.07
.03
.08
.01

Based on data from Federal Home Loan Bank Board and Savings Banks Association of
New York State. Net changes are derived directly from unrounded outstandings
levels as reported and after seasonal adjustment by Federal Reserve. Savings and Loan
data include loans in process. Subtotals may not add to totals because of rounding.




•

--

.02
.06
.08
.16
.04
.13
.17
-.10

\

'i
\

MORTGAGE COMMITMENTS OUTSTANDING (saar)
BiVons of dollars

Monthly

• i

i

'

i

r~~~i

• i
TOTAL

S&L'S

MSB'S

1959




1961

1963

1965

1967

:\

TABLE 12: Net Change in Mortgage Holdings 1
FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS
&
COMMERCIAL
SAVINGS
LOANS
BANKS
BANKS

TOTAL
INCLUDING
FNMA
1965

LIFE
INSURANCE
COMPANIES

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

1966-- I
II
III
IV

5,425
5,648
3,976
3,056

4,630
5,097
3,468
2,587

975
1,656
1,300
774

753
513
739
715

1,683
1,651
373
54

1,219
1,277
1,056
1,044

1967 - I
II
' III
IV

2,617
4,868
6,285
6,246

2,267
4,762
5,706
5,484

151
1,200
1,751
1,537

770
786
839
758

486
2,119
2,595
2,320

860
657
521
869

1968

1,768
1,989
2,227
2,125
1,851
1,982
2,000
2,314
2,088
2,483

1,494
1,743
1,992
1,905
1,699
1,841
1,892
2,153
1,943
2,311

400
616
616
616
533
533
746
807
706
404

137
160
203
219
248
233
221
313
310
340

789
879
957
901
718
. 874
810
845
732
903

168
88
216
169
200
201
115
188
195
664

1969 - Jan. r/1,750
Feb. 1,770
Mar.2/1 945
Tr.a.
Apr."

i/1,549
1,549
/l,740

r/500
500
r/500
600

293
228
198
n.a.

622
671
r/917
1,040

134
150
125

Mar.
Apr.
May
June
July
Aug.
Sept,
Oct.
Nov.
Dec.

"

l 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 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.




NET CHANGE IN MORTGAGE HOLDINGS
Monthly

Billions of dollars

3.0

TOTAL, INCL. FNMA

2.5

2.0

1.5

FINANCIAL INSTITUTIONS

1966




1967

1968

1.0

1969

TABLE 13: Net Increases in Mortgage Debt Outstanding 1
(Seasonally Adjusted Annual Rate)
1- to 4- MULTIMULTI-AND
COMMERCIAL
FAMILY COMMERCIAL
RESIDENTIAL2 FAMILY

. : QUARTER
1965 - I
II
III
•- IV

TOTAL
24.9
25.2
25.8
26.6

18.6
18.5
19.3
19.6

15.1
15.1
15.5
15.8

3.5
3.5
3.8
3.8

4.2
4.5
4.4
4.6

1966 - I
II
III
IV

28.4
23.6
17.8
14.9

19.0
15.3
10.6
9.2

14. 7
12.1
8.3
7.2

4.3
3.2
2.3
2.0

7.0
6.1 r
5.1
3.9

1967 - I
II
III
. IV

15.5
20.4
26.3
28.5

9.9
13.7
19.1
20.8

6.8:
10.5
15.3
16.5

3.1 3.2
3.8
4.3

1968 - I
II
III
IV

27.1
26.2
25.8
30.2

18.3
18.6
17.8
21.0

16.3
14.7
14.6
17.0

2.0
3.9
3.3
4.0

~

1

FARM

8.0
8.1
8.4
7.9

2.2
2.1
2.2
2.4

11.7
9.4
7.7
5.6,

2.4
2.2
2.1
1.7

3.8
4.8
4.8
5.1

7.3
8.0
8.8
8.8

1.8
1.9
2.4
2.6

6.3
5.3
6.2
7.7

8.6
9.3
9.8
10.8

2.5
2.3
1.8
1.6

/

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 non-farm 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.
2 Residential mortgage debt JLncludes nonfarm only and is sum of 1 - to 4-family and
multifamily mortgage delft'combined.
]>/ Preliminary.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

TOTAL

24
TOTAL
RESIDENTIAL

16
\—j

/ 1-4 FAMILY

COMMERCIAL

MULTIFAMILY
1965




1967

1969

TABLE 14: FNMA Weekly "Auction^ Results

WEEK
ENDED

TOTAL
OFFERED

IMPLICIT YIELD
AMOUNTS IN $ MILLIONS
ACCEPTED
6| 12-18^' 3 6TOTAL
3^12-18-/
|
MONTH 1f MOS.
M0NTH
MOS.
MOS.
MOS

-Mar.3
10
17
24

118.9
127.1
132.7
220,9

90.5
84.6
88.5
84.1

11.5
7.5
3.1
3.5\

38.1
37.0
45.6
47.4

41.0
40.2
39.8
33.3

8.13
8.14
8.09
8.10

8.17
8.13
8.08
8.09

Apr. 1
7
14
21
28

182.9
175.9
144.7
128.1
157.7

93.1
102.5
101.1
100.9
84.1

4.6
8.2
7.9
4.6
4.8

47.2
57.8
52.3
59.8
58.7

41.4
36.5
40.9
36.5
20.5

8.10
8.12
8.10
8.05
7.94

8.11
8.13
8.10
8.05
7.94

May 5

170.8
210.4
236.2

84.4
6.7
85.0
9.3
(83.3) ^ . 1 3 . 8
(85.0)

58.2
55.9
51.0

19.5
19.7
18.5

7.89
7.87
7.87

7.90
7.89

7.83
7.81

7.88

7.81

12
19
26£/

8.02
8.00
7.95
7.96
.
'
'

7.98
8.01
7.98
7.93
7.86

Note: Under the FNMA auction system, approved-sellers of Governmentunderwritten mortgages bid for FNMA forward purchase commitments,
subject to an- over-all dollar limit announced by FNMA in advance. Bids
accepted by FNMA are for delivery at the seller's option, and at any
time within the specified period. Bids on proposed homes' relate to
construction not yet started on which {mortgages may be delivered only
after completion and occupancy.
1. For "proposed construction " of new homes only.
2. Average secondary.market yield after allowance for commitment fee and required
purchase and folding of FNMA stock, assuming prepayment in 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.




FNMA WEEKLY "AUCTION" RESULTS

$ Millions
120

AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD
100

80
60

AND OVER

40

6 MONTHS

20

3 MONTHS

Per cent
-IMPLICIT YIELD

—

8.6

6-MONTH COMMITMENTS

8.0

—

7.4

I

I

I

I

I

i

i

•i -

r

i

i

i

i

i

i

l

l

6.8

i

$ Millions

TOTAL BIDS RECEIVED

TOTAL BIDS
ACCEPTED
JUNE

OCT.

AUG.

1968




DEC.

FEB:

APR.

JUNE

1969

AUG.

OCT.

DEC.

TABLE 15: Private housing starts and Permits
STARTS

DATE

1968 - Mar.
Apr.
May
June
July
Aug.
• Sept.
Oct.
Nov.
Dec.

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

1,511
1.591
1.364
1.365
1,531
1,518
1.592
1,570
1,733
1,509

920
922
838
790
904
867
944
965
905
922

591
669
526
575
627
651
648
605
828
585

TOTAL

126.6
162.0
140.9
137.9
139.8
136.6
134.3
140.8
127.1
96.4

UNADJUSTED
TYPE OF FINANCING
FHA VA
OTHER

19.6

4.5

20.5
19.8

5.5
5.0

20.9

4.8

21.4
17.5
16.3

5.3
4.2
4.4

22.6 5.4
18.8 4.9
18.6 4.6

102.4
134.0
114.9
113.1
116.2
110.9
111.1
114.0
105.4
75.7

BUILDING
PERMITS
(SEASONALLY .
ADJUSTED
ANNUAL
RATE) 2
1,416
1,340
1,280
1,281
1.289
1.290
1,393
1,378
1,425
1,463

1969 - Jan.
|l,878
1,066
812
101.5
14.2 3.8
83.5
1,403
90.0
1,686
975
1,477
Feb.
13.2 3.5
73.3
711
1,421
131.5
826
Mar.
jl, 580
754
18.9 3.9
108.7
785
Apr.
Il, 543
758
1,449
157.0
n.a. 4,4
Total 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 started under commitments by these agencies to insure or guarantee the mortgages. As reported by FHA and VA, a unit is started when a field
office receives the first compliance inspection report, which is made before
footings are poured in some cases but normally after the foundations have been
completed.
apehart 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. •
Revised.
p

Preliminary.




29

PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates
I

Millions of units

'

2.0

SEASONALLY ADJUSTED DATA

HOUSING STARTS
1.2

BUILDING PERMITS
(in issuing areas)

PER CENT OF UNADJUSTED TOTAL STARTS

CHANGE IN SERIES

40

MULTI-FAMILY
(3 or more)

GOVERNMENT UNDERWRITTEN
1963




1965

1967

1969

TABLE 16: Mortgage-and Bond Yields
FHA
MORTGAGES

DATE

1957 - H i g h
1958 - Low
1959-60 - High.
1961-66 - Low
1966 - High
1967 - High
Low
1968 - High
Low

1968- Nov.
Dec.
1969 - Jan.
Feb.
- Mar.
Apr.

1

NEW
SPREAD BE- CONVENTIONAL
TWEEN YIELDS Aaa CORON
CONV.
&
PORATE
MORT- .
25-YEAR 30-YEAR
FHA MORTBONDS
GAGES
3
GAGES 4
5
2

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

5.63
5.35
6.24
5.43
6.73
n. a.
n.a.
n.a.
n.a.

n.a.
n.a.
n.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

.47
.15
.23
.25
.30
.11.
-.12
.02
-.27

4.94
3.65
5.25
4.41
5.82
6.51
5.18
6.79
6.15

1.58
.88
1.69
.77
1.16
1.28
.27
1.20
.26

n.a.
n.a.
n.a.
n.a.
n. a.
n.a.

7.36
7.50

7.30
7.40
7.55 .
7.60
7.65
7.75

-.06
-.10

6.61
6.79
6,92
6.91
7.35
7.20

.75
.71

1

——

7.99
8.05
8.06

--

-.39
-.40
-.31

. —

. 1.08
.70
.86

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
d^ta 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 I. (Data prior to 1965 is based on a composite of issues with
and without call protection.) n.a. Not available.




31

MORTGAGE AND BOND YIELDS
Monthly

'

—r

HOME MORTGAGES:
CONVENTIONAL
FHA

Aaa CORPORATE BONDS:
NEW ISSUES

1961




1963

1965

1967

1969

TABLE 17: Conventional Mortgage Terms
NEW HOMES
>
. DATE

CONFEES &
T R A C T C H A R G E S EFFEC- M A T U R I T Y
(PER
RATE
T I V E , (YEARS)
CENT) RATE '
(PER
CENT)
3
2

LOAN/
PRICE
RATIO
(PER

LOAN
AMT.
($000)

CENT)

1

EXISTING HOMES
CON- FEES &
LOAN/
TRACT C H A R G E S EFFEC- MATU- PRICE
(PER
RATE
TIVE
RITY R A T I O
(PER
CENT)

CENT) RATE

2

(YEARS)

3

LOAN
AMT.
($000)

(PER
CENT)

1968
6 .50
6 .57
6,.69
<88
7,.04
7..10
7..10
7.,09
7.07
7.,09

0.88
0.88
0.95
0.95
0.85
0.87
0.87
0.88
0.84
0.89

7. 16
7.26
7.32
A p r . 2 / .7.46

0.84
0.81
0.93
0.98

Mar.
Apr.
May
July
Aug.
Sept.
Oct.,
Nov.
Dec.

6 .64
25.7
. 6 .71
25.3
6,,84
25.0
7,.03
25.4
7,.17
25.5
7..24
25.5
7.,24
25.5
7.,23 . 25.6
7,,21
25.4
7.23
25.9

74 .3
22.2
73 .4
21.9
73 .2
21.-7
74,.4
22.3
73,.7
22.2
73..6 . 22.6
74.,2
22.1
74.,5
22.7
74.,1
22.5
74.0
24.7

6.59
6.64
6.81
6.97
7.10
7.12
7.11
7.09
7.07
7.09

0.79
0.80
0.87
0.86
0.83
0.85
0.82
0.84
0.82
0.85

6 .72
6 .77
6 .95
7.12
7.23
7 .26
7,.25
7,.22
7,.21
7..23

23.0
22.6
22.5
22.6
22.5
22.7
22.6
22.5
22.7
23.3

73.3
72.8
73.1
73.1
72.6
73.0
72.6
72.4
72.9
73.2

18.3
18.1
18.3
18.2
18.5
18.6
18.3
18.3
18.9
20.4

73.6
73.3
73.8
73.4

0.86
7.18
7.28
0.86
7.35 * 0.84
7.46 X).85

7.,32
7.42
7.,49
7.60

22.8
22.9
23.0
23.0

72.6
72.8
72.7
72.2

20.0
19.6
20.2
20.0

1969
Jan.
Feb. ,
Mar.

7.30
7.39
7.47
7.62

p Preliminary

25.6
25.6
25.8
25.5

24.1
23.5
24.0
25.1

r

Revised..

1

C o m p i l e d by Federal H o m e L o a n Bank Board in cooperation with Federal Deposit Insurance
Corporation.
Data are weighted averages based on probability sample survey of characteristics of conventional first m o r t g a g e s originated by m a j o r institutional lender
groups, (including m o r t g a g e c o m p a n i e s ) for purchase of single family homes.
Data exclude loans for refinancing, reconditioning, or m o d e r n i z a t i o n ; construction loans to
home-builders; and--in this exhibit--permanent loans which are coupled with construction
loans to owner-builders.
Data prior to 1965 on a c o m p a r a b l e basis with the new series
are pending.
Related series on conventional m o r t g a g e rates only, based on unweighted
opinions of regional-office directors of the Federal.Housing A d m i n i s t r a t i o n , are available somewhat sooner than the results of the FHLBB-FDIC survey, and are included-iri the
case of new h o m e m o r t g a g e rates--in T a b l e 16.

2

Fees and charges--expressed as a percentage of the principal mortgage amount — include
loan commissions, fees, discounts, and other charges which provide added income to the
lender and are paid by the borrower.
They exclude any closing costs related ~solely to
transfer of property ownership.
' -

3

Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate. .




"

. ~

•

CONVENTIONAL MORTGAGE TERMS
Monthly

Years
30

MATURITY
NEW

EXISTING

20

LOAN/FRICE RATIO

NEW

EXISTING
70

1963




1965

1967

1969
* CHANGE IN SERIES