Full text of H.16 Capital Market Developments : September 2, 1969

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L.5.8 Confidential (F.R^

CAPITAL
MARKET
DEVELOPMENTS

Capital Markets Section, Division of Research and Statistics,
Board of Governors of the Federal Reserve System, Washington, D. C.




INDEX
3-5

Developments in the Corporate and Municipal Bond Markets

6-7

Capital Market Yields

8-13

Capital Market Volume

14-17

Stock Market

18-33

Mortgage Market

SYMBOLS:
e

/

Estimate

p

Preliminary

r

Revised

n.a.

Not available




-

T A B L E 1: Yields, Volume and Reception

YIELDS
MOODY'S
SEASONED
NEW ISSUE1
Aaa

. WEEK ENDING:

1969 - Aug.

1
8
15
. 22
29

Sept.

5£ '

1969 - Aug.

Sept.

7.75
7.57
7.53
7.61
7.82

7.05
7.01
6.96
6.95
6.98

243
148
208
189
141

97
99
80
78
86

n.a.

n. a.

240e

n.a.

YIELDS
MOODY'S
BOND BUYER
SEASONED
SEASONED 20
Aaa
BOND INDEX

WEEK ENDING:

1
8
15
22
29
5£y

CORPORATE BOND MARKET
VOLUME2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS

5.78
5.70
5.73
5.73
5.80

5.93
5.80
5.91
6.02
6.26

n. a.

n. a.

467
r/468
562
r/513
680
n. a.

MUNICIPAL BOND MARKET
VOLUME2
PER CENT
GROSS
BONDS SCHEDULED
SOLD BY END
WITHIN 28 DAYS
OF WEEK
OFFERINGS
141
268
r/319
1/172
162
100e

97
80
64
61
48
n.a.

/

542
405
392
365
644
n. a.

1 Derived by adjusting to a Aaa 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.
Note:

See footnotes to Table. 3




T A B L E 2: Details on Inventories

AMOUNT
' (MIL. $)

DATE
OFFERED
8/26
8/14

"

65.0
15.0

DATE
OFFERED 1 RELEXSED
8/12
8/13
8/19
8/20

8-25
8-26
8-25
8-26

»

J CORPORATE BONDS ,1/N SYNDICATE END OF LATEST W E ~
ORIGINAL RATING AND
YIELD CALL PROTECTION
COUPON
ISSUER
.

.

•; . '
Georgia Pwr.
Gas Service

•

8-1/8
8-1/8

8.10
8.20

Aa
A

5 yrs.
5 yrs.

/

ESTIMATED PROPORTION SOLD

.

70%
75%

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT
ISSUER
COUPON
YIELD IN YIELD CALL PROT. PORTION RELEASEE^
7-3/4
45.0
Carolina Telephone
7.75
+25
Aa
5 yrs
40%
80.0
Phila. Elec.
8
7.79
+11
Aaa 5 yrs
40%
20.0
Iowa-111.. Gas
7-7/8
7.80
+25
Aa
5 yrs
75%
75.0
Pacific N. W. Bell
8
. 7.75
+18
Aaa 5 yrs
40%

DATE
1969 - July 25
Aug. 1
8
15
22
29B./

INVENTORIES 1
MUNICIPALS
BLUE LIST
]
IN SYNDICATE
507
421
393
367
453
465

203
54
59
112
125
141

CORPORATES
IN SYNDICATE
57
26
8
42
90
23

N.C. - No call protection.
1
All figures in millions of dollars. Blue List is daily average for week ended Friday, except for latest week
which is daily average of three days ended Wednesday. All other figures are as of Friday.




BONDS IN SYNDICATE
Millions of dollars

CORPORATE BONDS IN SYNDICATE

200
100

! • i

i—|—i—i—i—i—i—i—"i—i—i—i—r

MUNICIPAL BONDS IN SYNDICATE

i

i . l

i . i—i—i—r—i—r

,
300

200

—

SEPT.

DEC.

67




MAR.

JUN.

1968

SEPT.

DEC.

MAR.

JUN.

1969

SEPT.

DEC.

100

T A B L E 3: ; High Grade Bond Yields .

1967 - High
Low

NEW
CORPORATE
Aaa1
6.55(12/8)
5.11(2/10)

1968 - High
Low
1969 - High
Low

DATE

1969 - Aug.

1
8
15
22
29£/

1

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR'
CONSTANT
,
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

6;24(2/29)
5.00(2/10)

5.73(11/7)
4.48(1/20)

4.45(12/7)
3.40(2/2)

7.02(12/13)
6.13(8/30)

6.55(1/27)
5,95(9/13)

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

4.85(12/26)
4.07(/8/8)

7.82(8/29)
6.90(2/21)

7.10(7/11)
6.55(1/3)

6.41(5/30)
5.96(1/24)

6.26(8/28)
4.82(1/28)

7.75
7.57
7.53
7.61
7.82

7.05
7.00
6.96
6.95
6.98

6.26
6.18
6.21
6.20
6.28

5.93
5.80
5.91
6.02
6.26

New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
2
Weekly average of daily figures. Average term of bonds included is
22-24 years.
3
Weekly average of daily figures.
4
Thursday figures. The average rating of the 20 bonds used in this index
1
falls midway between the four top groups as classified by 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

Per cent

NEW CORPORATE Aaa

MOODY'S
V
CORPORATE Aaa

U.S. GOVT. 20-YR.
CONSTANT MATURITIES

BOND BUYER MUNICIPAL Aaa

1965




1966

1967

1968

1

1969

T A B L E 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

GROSS PROCEEDS
1

STATE AND LOCAL 2

CORPORATE

PERIOD
1969p

1968p

1967

1969 p

1967.

1968p

January
February
March

2,075
2,045
2,098

1,771
1,608
1,799

1,684
1,418
2,362

!
i
;

1,263
988
540

1,178
1,158
1,404

1,492
1,236
1,450

April
May
June

.

2,707
2,102
2,560e

1,428
1,866
2,411

2,015
1,518
2,674

j
1

1,800
1,113
7U;

1,318
1,143
1,395

1,130
1,254
1,497

. July
August
September

2,360e
l,600e
2,0506,

1,063
850e
850e

1,469
1,699
1,444

950
860
1,340

2,230
1,021
1,115

975
1,401
1,182

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

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
' Year

6,218
7,369
6,010
13,587e
19,597e

i

'

2,143
1,432
1,557

2,589
2,481
1,763

2,129
1,767
2,054

2,409
1,500
2,385

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

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

2,791
3,624
2,763e

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

6,415
9,178e

7,956
12,008
16,574

8,059
11,209
14,766

!

Excluding finance companies3
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

Year
1
2
%

5,107
5,427
4,785
5,654

5,308
6,063
6,584
5,859

20,973

23,814

Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total gross proceeds excluding offerings of sales and consumer finance
companies.




y$*S&US*k&&.

-&A t*ysS«-..w .

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

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

QUARTER.
OR
MONTH
1968 - I
II
III
IV
1969 - I
lie/

5,178
5,705
5,133
5,951
6,218
7,369

2,465
3, 105
2,606
2, 555
2 657
3 ,397

1 724
1 644
1 361
1 922
1 ,540
1 ,775

989
956
1,166
1,474
2,023
2,196

313
172
124
113
215
n.a.

584
758
1,,037
902
1 ,355
=
1 ,336

1,,907
1,,703
1,,657
1,,712
1,,407
1 ,415

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY
1,,442
1,,244
1,,160
1,,435
1,,346
1 ,666

685
1968 - June
2,418
1 ,340
=
385
52
239
767
528
July
2,144
1,,244
372
605
47
843
637
1,433
400
Aug.
396
211
362
49
1,556
Sept.
727
433
398
28
221
453
Oct.
2,129
595
1 ,009
525
365
24
640
1,767
939
362
Nov.
466
49
211
421
2,055
607
965
Dec.
483
326
40
651
636
2,075
980
1969 - Jan.
460
103
376
403
395
Feb.
2,045
842
808
74
578
513
2,098
835
Mar.
755
38
401
491
509
Apr.
50
2,707
1 ,267
634
805
436
515
Maye/
2,102
920
491
691
. 28
500
575
June e/ 2,560
1 ,210
650
700
400
360
July e/ 2,360
500
1 ,360
500
200
475
. .. Aug.e/ 1.600
700
500
400
300
250
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.
Note: May 1969 figures are Securities and Exchange Commission estimates revised
Reserve Board.




507
239
446
475
674
443
319
627
315
404
739
377
550
370
450

COMMUNICATIONS

OTHER
ISSUERS1

422
536
490
319
473
421

1,407
2,223
1,825
2,483
2,993
3,832

239
239
95
156
115
162
41
186
56
231
44
197
180
300
175

898
822
530
472
700
741
1,044
860
1,161
972
1,409
953
1,470
1,215
725

by the Federal

T A B L E 6:

Large Long-term Public Security Issues for New C a p i W
(Other than U.S. T r e a s u r y ) 1

August 1 through September 1, 19&9
TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATI'. OR
K l: I 1..TER' 1ST C O S T

OFFERING
VI ELD

MOODY';
RAT1N(,

Corporate ^Southeast Bancorporation,
Inc.
Florida Power Corporation
Diamond Shamrock Corp.
Metropolitan Edison Co.
American Inves tment Co.
Carolina Tel. & Tel. Co.
Evans Products Co.
Philadelphia Electric Co.
Gas Service Co.
*Great American Mtg.
Investors
Digtal Equip. Corporation
Iowa-Illinois Gas & Elec.
Company
Ampex Corporation
Pacific Northwest Bell
Telphone Company
Rochester Gas & Elec. Corp.
American Elec. Pwr. Co.
Georgia Pwr. Company
Georgia Pwr. Company
Duke Pwr. Company
Duke Pwr. Company




Conv. sub.debs.
1st mtg.
S.F. debs.
1st mtg.
Notes
Debs.
Debs,
1st mtg.
1st mtg.

15.7
35.0
45.0
25.0
20.0
45.0
50.0

1989
1999
1994
1999
1989
1999
1994
1975
1999

6
7-7/8
7-3/4
8-1/8
8-3/4
7-3/4
6-1/4
8
8-1/8

6.00
7.75
7.75
8.00
8.80
7.75
6.25
7.79
8.20

N.R.
Aa
A
A
N.R.
Aa
B
Aaa
A

1st mtg.
20.0
Conv. sub.debs. 60.0

1999
1994

7-7/8
5-1/2

7.80
5. 50

Aa
Ba

Debs.
1st mtg.
Com. stk.
Com. stk.
1st mtg.
1st & ref.
Cum. pfd.

2009
1999

7-3/4
8

7.75
7.95

Aaa
A

1999
1999

8-1/8
8

8.10
7.95

Aa
Aaa

Benf. Int.
Com. stk.

80.0
15.0

26.4
15.5

75.0
30.0
92.7
15.0
65.0
75.0
50.0

T A B L E 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1

(continued)

ISSUER

\

TYPE 2

t 1 through September 1, 1969
COUPON
1
RATE OR
niTKR- MOODY'S
NET INTER- i li.C
RATING
EST COST
] YIELD

AMOUNT
(MILLION'S
OF
DOLLARS)

MATURITY

15.0
20.0
18.5

1970-84
1971-1999
1980-94

5.59
5.90
5.93

5.20-5.50
5.20-6.25
5.50-6.00

A-l
A
Aa

72.0
12.0
48.1
14.0
100.0
20.0
7.8
4.7
10.0

1972-90
1970-88
1969-88
1979-1998
1972-99
1970-89
1994
1972-84
1970-84

5.84
5.99
5,99
5.42
5.84
5.88
6.98
6.98
6.58

5.20-5.85
5.10-5.90
5.00-5.90
5/20-7.00
5.20-6.15
5.10-5.88
7.00
6.25-6.75
5.70-6.50

Aa
A
Aa
Aaa
Aa
A-l
Aa
Aa
Baa

State & local Government
Louisiana State Bd. Comm.
Baltimore Co., Maryland
Georgia Highway Authority
San Francisco Bay Area
Rapid Transit Dist.,
California
Cook Co., Illinois
Illinois Building Auth.
Texas, State of
Pennsylvania, State of
Louisiana St. Bond Comm.
Wichita, Kansas
Wichita, Kansas
Mobile, Alabama
Los Angeles Dept. of Wtr.
& Pwr., California
Kalamozoo School Dist.,
Michigan
New Jersey, State of
Minnesota, State of
Bay City Sch. Dist., Mich.
Baltimore, Maryland
Wisconsin State Agencies
Bldg. Corporation




Bonds
G.O.
Rev.
5.0.
G.O.
Rev.
G.O.
G.O.
G.O.
Rev.-Rent.
Rev.-Rent.
G.O.
Rev.

18.0

1970-99

6.01

5.10-6.00

Aa

G.O.
G.O.
G.O.
G.O.
G.O.

12.3
37.5
37.5
10.5
35.0

1970-1994
1973-1989
1979
1970-79
1970-99

5.86
5.70
5.86
5.96
6.36

5.00-5.90
5.20-6.00
5.10-5.85
5.20-5.90
5.30-6.50

Aaa
Aaa
Aa
Aa

23.0

1970-2003

6.46

5.10-6.40

Aa

i

Rev.

A

T A B L E 6': Large Lomj lerm Public Security Issues for New Capital (continm d)
(Other than U.S. Treasury)'

ISSUER

TYPE 2

August 1 through September 1. 1969.
C.i 'UPON
AMOVNT
RATE OR
f MILL 10:. S j
•'KFKR- ! MOODY'S
MATURITY i NET INTER OF
i:.<
' RATING
] EST COST
DOLLARS) 1
I X1L LU 1

Other
Intercontinental, Overseas Her. Marine
Bulktank Corp.
Bds.
Federal Home Loan Bank
Bonds
Ontario (Province of)
Debs.
*FNMA
Bonds

28.2
201.0
100.0
250.0

1973-90
1974
1999
1974

7.80
7.65
8-3/8
7.85

7.80
7.65
8.45
7.85

Aaa
Aa

Rights ottering.
Includes corporate and other security offerings of $15 million and
State and local security offerings of $10 million and over.
In case of State and local government securities, G.O. denotes gem vuI obii gat ion;
•<ev.-Utrevenue obligations secured only by income from public ut ilities;
Rev. -Q.-tit., revenue bonds secured only by income from quasi - ut i 1 ii es
t ; Rev . -S..T . ,
revenue bonds secured by revenue from specific taxes only; Kev.-Ken
revenue
bonds secured solely by lease payments.
Includes foreign government and International Bank for Reconstruct i
Development issues and non-quira^nteed issues by Federal Agencies.




—.-V--.itiSst.~v--

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1

As of September 1, 1969.

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE .
OF OFFERING

Corporate
^Society Corporation
Hublein Inc.
*R. J. Reynolds Tobacco Co.
<*R. J. Reynolds Tobacco Co.
Long Island Lighting Co.
U. S., Bancorp.
Beatrice Foods Company
Southwestern Bell Telephone
Company
*Zurn Industries, Inc.
*Credithrift Financial Corp.
Consolidated Edison Co. of
New.York
International Bank
*Chemetron Corporation
Ohio Edison "
*Tenneco Inc.
Gulf States Utilities Co.
North Indiana Public Service
Company
New England Power Company
Panhandle Eastern Pipeline
Company.
^Baltimore Gas & Elec.
Washington Gas Light Co.
Cincinnati & Suburban Bell
Bell Telephone Company
First & Merchants Corp.
*Phillip Morris Inc.
^Northern Pwr. Co.
^Columbia Gas System Inc.
National Health Enterprises
Inc.
Collins & Aikeman
Investment Properties Assoc.
Vernitron Corporation




Conv. debs.
Conv. sub. debs.
Notes
S. F. Debs.
1st mtg.
Conv. debs.
Debs.

15.0
50.0
50.0
100.0
35.0
25.0
35.0

September
September
September
September
September
September
September

1
1
4
4
4
8
9

Debs.
Conv. debs.
Debs.

150.0
18.0
20.0

September
September
September

9
9
10

Com. stk.
Conv. debs.
Debs.
Bonds
Bonds
1st mtg.

50-60.0
30.0
40.0
40.0
50.0
25.0

September
September
'September
September
September
September

12
15
16
16
16
18

1st mtg.
1st mtg.

20.0
15.0

September
September

18
22

Debs.
Bonds
Bonds

40.0
25.0
20.0

September
September
September

23
23
23

35.0
20.0
100.0
45.0
50.0

September
September
September
October
October

29

15.0
15.0
78.8
15.0

October
October
October
Indefinite

Debs.
Conv. sub. debs.
Conv. debs.
Bonds
Debs.
Debs.
Conv. debs.
Bonds
Conv. debs.

1
2

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
,0the r , h

( c o ^iUriM,eaSUry)J
AMOUNT
(MILLIONS
TYPE
OF
DOLLARS)

ISSUER

' -

'

'

APPROXIMATE DATE
OF OFFERING

State & local Government
Oregon, State of
Jacksonville Elec. Auth.,
Florida
*Hawaii, State of
Newark, New Jersey
Houston, Texas
Jefferson Parish, La.
St. Louis Co., Missouri
Wayne Co., Michigan
Washington State Bd. for
Community Education
Newport News, Virginia
^Chicago Park Dist., 111.
Alaska
*West Virginia, State of
Warren Consolidated Sch.
Dist., Michigan
^Louisiana, State of
*Los Angeles Dept. of
Wtr. & Pwr.
*Los Angeles Co. Flood
Control Dist.
Other
He A. A#

Tennessee Valley Auth.

G.O.

47.0

September

3

Rev.
Bonds
V. P.
Rev.
Bonds
G.O.
Bonds

22.0
33.9
20.5
24.0
10.0
13.0
20.0

September
September
September
September
September
September
September

3
4
9
10
10
11
11

Rev.
G.O.
Bonds
G.O.
Bonds

22.0
16.0
19.5
10.2
18.3

September
September
September
September
September

11
16
16
17
18

Bonds
Bonds

13.0
15.0

September
September

24
30

Rev.

39.0

October

8

.Bonds

15.0

October

14

September
October

24
7

;!

Bonds
Bonds

200.0
100.0

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 this week were: Dade Co. Board of Public Instr., Florida,13.4 no bids received. New York State Elec. & Gas Company,30.0 - postponed
indefinitely because unfavorable market conditions. Beneficial Standard
Corporation, 15.0 postponed indefinitely because'of market conditions.
Albany Co., New York, 70.0 postponed because of market conditions.




T A B L E 8: Stock Prices and Volume

rr

TRADING VOLUME

STOCK PRICES
S&P
5003
1967 - High
Low

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

D.J. - IND.

24.52(12/29)
13.78(1/27)

60.7(8/14)
27.41(1/6)

33.5(10/27)
8.3(1/6)

1968 - High
Low,

108.37(11/29) 985.21(12/3) 33.25(12/20)
87.72(3/5)
825.13(3/21) 22.00(3/22)

82.1(6/7)
34.0(2/23)

45.4(6/7)
14.1(2/23)

1969 - High
Low

105.94(5/16)
91.96(7/25)

1969 - July 11 95.77
18 94.95
25 91.96
Aug. 1 93.47
8 93.94
15 94.00
22 95.92
29g/95.51
.1 Figures other "than highs
for the year and are not

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

AMEX4

968.85(5/14)
801.96(7/29)

32.91(1/3)
25.02(7/29)

72.7(5/2)
32.8(4/4)

38.4(5/9)
12.9(4/4)

852.25
853.09

27.43
27.10

51.8
48.9
41.0
70.3
48.9
44.4
50.3
43.0

20.3
19.0
13.5

818.06
826.59
824.46

26.16
26.20

26.33
26.37
820.88
837.25
r/26.89
836.72
26.88
and lows are Fridays only,
necessarily for Fridays.

28.0

m •

19.0
16.6

Highs and lows are

Total number of shares traded per week (millions of shares). In the past,
trading was normally conducted 5 days a week for 5 1/2 hours per day, or
27 1/2 hours per week. From August 8 through August 20, 1967, daily trading was reduced to 4 hours per day or 20 hours per week. A 20-hour week
was also in effect from January 22 through March 1, 1968. From June 30
through December 31, 1968, the exchanges were open 5 1/2 hours for 4 days
a week or 22 hours. Beginning January 3, 1969, the exchanges have been
open 4 hours each day, 20 hours per week. NYSE is New York Stock Exchange;
AMEX is American Stock Exchange.
1941-43 = 10.
4

Average dollar value of shares listed.




15

D.J.

STOCK PRICES AND TRADING VOLUME
AMEX
STOCK PRICES
AMEX PRICE LEVEL INDEX

S&P's 5 0 0

D.J. IND.

S&p

(Ind)

(500)

1300

130

1260

126

1220

122

1180

118

1140

114

1100

110

1060

106

1020

102

980

98

940

9A

900

9(

860

86

820

82

780

78

740

74

AMEX TRADING VOLUME (TOTAL FOR WEEK)
40

20
,

T

V-,

: v

| j;i:

t;;'j
0

;
I
r-NYSE TRADING VOLUME (TOTAL FOR WEEK)

80

60
' ';| ! |V
1
il, i.!'. ' !i!lil Ir.:".-!
!! il1 Jii-::
'.
ri viii
i:".'-:

'I 'I,

I'l; 'C:

40

20
0
1965

1966




T A B L E 9: Security Credit

END OF PERIOD

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS 1 I BANKS 2 I TOTAL

CUSTOMERS'
NET DEBIT
BALANCES

NET CREDIT
CUSTOMERS' NET EXTENDED BY
FREE CREDIT
BROKERS AND
DEALERS 3
BALANCES

Outstanding;
1968 ~ June
July
Aug.
Sept.
Oct.
Nov.
Dec.

6,690
6,500
6,460
6,390
6,250
6,200
6,200

2,410
2,420
2,490
2,520
2,560
2,630
2,710

1969

5,930
5,750
5,590
5,570
5,670
5,340
5,190

2,750
2,810
2,780
2,760
2,770
2,740
2,700

1968 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.

50
-190
-40
-70
-140
-50

50
10
70
30
40
70
80

1969 - Jan.
Feb.
Mar.
Apr.
May
June ry
July £/

-270
-180
-160

40
60
-30

-20

-20

100

10
-30
-40

Jan.
Feb.
Mar.
Apr.
May
June
July

9,100
8,920
8,950.
8,910
8,810
8,830
8,900

8,728
8,861
8,489
8,724
8,859
9,029
9,970

3.293
3,269
2,984
3,126
3,407
3,419
3,717

5,435
5,592
5,505
5,590
5,452
5,610
6,073

8,680
8,560
8,370
.8,330
8,440
8,080
7,890

9,042
9,1.48
8,318
8,044
8,474
8,214
7,515

3,597
3,647
3.294
3,077
3.084
3.085
2,783

5,445
5,501
5,024
4,967
5,390
5,129
4,732

100
-180
30
-40
100
20
80

460
133
-371
235
135
170
761

229
-24
-285
142
281
12
298

231
156

-928
-51
-830
-274
430
-260
-699

50
-351
-217
7
1
-302

Change in
Outstanding':

-330

-150

-220 .

-120
-190
-40
110
-360
-190

-120

-86

85
-138
158
563
-628
-9
-477
-57
423
•261
-397

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. Broker data includes loans for regulated securities; bank
data includes loans for the purpose of purchasing or carrying any security, whether
regulated or not.




TABLE 10: Savings Flows at Nonbank Depositary Intermediaries

(S millions)

DATE

1966
1967
1968

, TOTAL
SAVINGS & LOAN ASSOCIATIONS
\ MUTUAL SAVINGS BANKS
DEPOSITS
] NET
NET
NET
REGULAR DEPOSITS 3
SHARE CAPITAL
NEW
• NEW
NEW
"ANNUAL
ANNUAL
ANNUAL
MONEY2
: GROWTH
MONEY2
MONEY2 NET
NET
GROWTH
GROWTH
NET
1
RATE
'FLOW
,FL0W
RATE 1
RATE 1
FLOW
2,557
5,082
4,186

1968 - May
June
July
1969 - May
June 2 /
July £/

363
453
186
308
307
-160

4.9
9.3
7.0
——
-——
—

, —

227
2,376
1,143

Not Seasonally Adiusted
3.2
3,584
-552
10,687
9.4
6,129
7,396
5.9
2,676

6,141
15,769
11,582

3.8
9.4
6.3

-325
8,505
3,819

722
158
-606

1,120
2,075
-419

——

1,022
47
-542

602
949
1,649
-116
-1,075 -1,261

——

300
-111
64

757
1,622
-605

227
-281
-295

641
1,359
-1,062

__
—

——
—

--

--

829
-85
•1,397

Seasonally Adjusted
1969 - Feb.
Mar.
Apr.
May
June jgi /
July £/

1
2
3

384
382
160
357
161
-fy3

7.2
7.1
3.0
6.6
2.9
-0.8

-w
----

582
894
190
498
491
8

5.3
8.1
1.7
4.5
4.4
0.1

-'———

966. 5.9
1,276
7.8
350
2.1
855
5.2
3.9
652
-0,2
-35

——

——
——

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.
Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
insured associations only, which represent 967= of industry total resources.
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 Ranks and Federal Home Loan Bank Board.




SAVINGS FLOWS (seasonally adjusted)
Monthly




Millions of dollars

.

TOTAL

SAVINGS & LOANS

MUTUAL SAVINGS BANKS

2000

TABLE 11: Mortgage Commitments at Selected Thrift Institutions 1

DATE

1968 - July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb.
Mar.
Apr.
May
June
July J>/

NET CHANGE
OUTSTANDING
COMMITMENTS
ALL
ALL"
" MUTUAL " 1
SAVINGS
TOTAL
SAVINGS
&
SAVINGS
&
TOTAL
BANKS
LOAN '
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, Seas onally Adjusted) 1/

9.0
9.1
9.5
9.7
9.7
9.9
10.1
10.3
10.5
10.3

10.2
9.9

6.1
6.1

6.2
6.4
6.5
6.6
6.7
6.9
7.0
7.2
7.1
7.0

6.8

2.7
2.9
2.9
3.0
,3.2
3.1

.24
.16
.14
.35
.27

. 16

3.2
3.2
3.3
3.3
3.2
3.2
3.1

.15
.25
.17
.19
.19
.09

.08
.22
;09
.18

.28

.20

.01

MUTUAL
SAVINGS
BANKS
(N.Y. STATE.)

. 10

.22

. 10
.08

.10

.05

Based on data from Federal Home Loan Bank Board and Savings Banks Associations of
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. Mutual Savings Banks and total data
include building loans beginning August 1967.
,.




.08
.16
.04
.13
.17

.10
.07
.03

.08

.01
.09
.04

.08

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Billions of dollars

Monthly

TOTAL

S&L'S

N.Y.-MSB'S

* Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

T A B L E 12: Net Change in Mortgage Holdings

1

TOTAL
INCLUDING
FNMA-GNMA

(millions of dollars)
FINANCIAL INSTITUTIONS
1
MUTUAL- SAVINGS &] LIFE
INSURANCE
SAVINGS
LOAN
TOTAL 1 COMMERCIAL
BANKS
ASSOC. -COMPANIES
BANKS
I

18,197
19,988
23,807

15,874
18.191
21,399

4,705
4,639
6,677

2,760
3,118
2,796

1,978
2,238
2,125
1,851
2,202
2,165
2,398
n.a.

1,732
2,003
1,905
1,699
2,011
1,980

616
616
616
533
600
600
600

160
203
219

1969 - Jan.
2,143
2,292
• Feb.
2,022
Mar.
2,083
Apr.
May
. 2,031
June r/2,144
n.a.
July

1,988
2,109
1,826
1,877
-1,810
r/1,873
n.a.

DATE

;

F::MA-CNMA

Not Seasonally Adjusted
1966
1967
1968
1968

1969

- Apr.
May
June
, July
- Apr,
May
June
July

2,176

n.a.

248

204
233
216

3,761
7,538
9,330
879 957
901
718
1,026
988
1,216
870

200

2,323
1,797
2,508

4,648
2,914
2,496
88
216
169
200

181
159
144

n.a.

i

246
235
220
152
191 .
185
n.a.

Seasonally Adjusted
691
708
636
525
531
439
131

303
269
208
253
258
r/231
163

890
874
852
897
842
1,033
874/

104
258
130
202
179
170

n.a.

155
183
196
206
221
271
n.a.

--

1/

Monthly data for commercial banks, including banks in the possessions, based on
Federal Reserve estimates benchmarked to Call Report data on real estate lpans_
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 87 per cent of the net increase
estimated for all holders in 1967.




NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

Billions of dollars

2.5
TOTAL, INCL, FNMA - GNMA

2.0

FINANCIAL INSTITUTIONS

1.5

1.0

1966




1967

1968

1969

24

.

"

•

.

.

TABLE 13: Net Increases in M o r t a g e Qebl Outstanding

1

Billions of dollars, SAAR 2

QUARTER

TOTAL

RESIDENTIAL

1- to 4- MULTIFAMILY
FAMILY

24.9
1965 - I
• . • - II 25.2
III 25.8
26.6
IV

18,6
18.5
19.3
19.6

15.1
15.1
15.5
15.8

3.5
3.5
3.8
3.8

1966 - I
II
III
IV

28.3
24.2
18.4
15.6

19.0
15.6
10.8
'9.5

14.7
12.1
8.3
7.2

15.5
1967 - In
H p 20.4
III > 26.3
IVp 28.6

9.9
13.7
19.1
20.9

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

4.2
4.5
4.4
4.6

8.0
8.1
8.4
7.9

2.2
2.1
2.2
2.4

4.3
3.5
2.6 ;
2 3

6.9
6.5
5.4
4.3

11.6
10.0
8.3
6.2

2.4
2.2
2.1
1.7

6.8
10.5
15.3
16.5

3.0
3.3
3.8
4.4

3.8
4.8
4.8
5.1

7.3
8.1
8.8
8.8

1.8
1.9
2.4
2.6

'-

,

1968 - IP
IIP
III!
ivp

26.9
25.8
25.8
31.3

18.2
17.9
17.7
21.5

15.4
14.8
14.1
17.0

2.8
3.1
3.5
' 4.5

6.2
5.7
6.4
8.1

9.4
8.7
10.2
11.8

2.4
2.3
1.8
1.7

1969 - Ip
lip

30.2
27.1

21.1
19.3

18.0
16.1

3.2
3.2

7.1
5.9

10.6
9.0

2.0
1.9

1

2

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.
Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family
and multifamily mortgage debt combined.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly




Billions of dollars, seasonally adjusted annual rate

TOTAL

24
TOTAL
RESIDENTIAL

I 1-4 FAMILY

COMMERCIAL

MULTIFAMILY
1967

1969

'• V

•

.

T A B L E 14: FNMA Weekly

WEEK
ENDED
1969 - July

Aug.

4
11
18
25

xx

•

•'

Auction" Results.

IMPLICIT YIELD2(per cent)
COMMITMENTS IN'$ MILLIONS
ACCEPTED
1-YEAR 1
9061-YEARJ
906TOTAL . TOTAL
& OVER
DAY
MONTH & OVER
DAY
MONTH
OFFERED
8.42
24.1
85.1
8.47
8.31
121.0
11.7
195.5
8.40
8.39
8.29
129.7
11.5
17.4 100.9
177.1
8.31
93.5
8.30
8.19
130.9
18.3
250.9
19.1
8.26
129.6
15.9
92.4
21.3
8.25
8.15
298.2
282.5
275.2
269.7
250.6

Sept. 2^y

125.4
129.3
129.2
150.8

19.1
16.7
14.7
13.5

78.9
82.7
88.3
112.1

27.4
29.9
26.3
25.2

8.27

8.28

8.31
8.32

8.28

8.29
8.31

8.16
8.16

8.18

8.32

8.19

(150.0)-/

/ ;

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.
For -'proposed construction" of new homes only.
Average secondary market yield after allowance for commitment fee and
required purchase and holding of FNMA stock, assuming prepayment of
15 years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 50 basis points 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
1 YEAR
AND OVER

60
40

6 MONTHS

20

3 MONTHS

Per cent
- I M P L I C I T YIELD
6-MONTH COMMITMENTS

8.0
7.4
_

6.8

Millions

400

300

200

TOTAL BIDS RECEIVED

100
TOTAL BIDS
ACCEPTED
JUNE

AUG.

OCT.

1968




DEC.

FEB.

APR.

JUNE

1969

AUG.

OCT.

DEC.

T A B L E 15: Private Housing Starts and Permits

STARTS
SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL |I-FAMILY 2 OR MORE
904
867
944
965
905
922

627
651
648
605
828
585

.139.8
136.6
134.3
140.8
127.1
96.4

Jan. i1,878 1,066
Feb. 11,686
975
828
Mar.
1,584
1,563
Apr.
797
_
883
May
1,509
June e,/! ,464 801
739
July 2/1,336

812
711
756
766
626
663
597

101.5

-1968 - July
Aug.
Sept.
, Oct.
Nov.
Dec.
1969

TOTAL

1,531
1,518
1,592
1,570
1,733
1,509

90.0

131.9
159.0
155.5
146.4
122.0

UNADJUSTED
TYPE OF FINANCING

18.8 4.9

20.9

21.4
17.5
16.3

4.8
4.6
5.3
4.2
4.4

14.2
13.2
18.9
23.0
21.1
21.5
21.4

3.8
3.5
3.9
4.4
4.3
4.6
4.7

18.6

BUILDING
. PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2

116.2
110.9
111.1
114.0
105.4
75.7

1.289
1.290
1,393
1,378
1,425
1,463

83.5

1,403
1,477
1,421
1,502
1,323
1,340
1,206

73.3

109.1
131.6
130.1
120.3
95.9

Total starts are Census estimates including farm for both permit-issuing and
noi.-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. 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 haying 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.




PRIVATE HOUSING STARTS AND PERMITS
M o n t h l y .annual rates

Millions of units

SEASONALLY ADJUSTED

2.0

HOUSING STARTS

1.2

BUILDING PERMITS
(in issuing areas)

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
(2 or more)

>

GOVERNMENT UNDERWRITTEN

1963




1965

1967

1969

TABLE 16: Mortgage and Bond Yields 1

DATE

FHA
MORTGAGES

2

25-YEAR 30-YEAR
1957 - High
1958 - Low
1959--60 - High
1961-•66 - Low
1966 - High
1967 - High
Low
1968 - High
Low
1968 - Dec.
1969 - Jan.
Feb.
Mar.
Apr.
May

1

2

3

4

5.63
5.35
6.26
5.43
6.73
n. a.
n. a.
n. a.

n. a.
n. a.
n. a.
5.44
6.81
6.81
6.29
7.52
6.78

n. a.

7.50

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

7.99
8.05
8.06
8.06
8.35
8.36

CONVENTIONAL
MORTGAGES
3
6^0
5.55
6.30
5.80
6.70
6.65
6.40
7.30
6.75
7.40
7.55
7.60
7.65
7.75
7.75
8.00
8.10

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES
.47
.15
. 23
.25
.30
.11
-.12
.02
-.27

NEW
Aaa CORPORATE
BONDS
4
4.94
3.65
5.25
4.41
5.82
6.51
5.18
6.79
6.15

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
* 1.58
.88
1.69
.77
1.16
1.28
.27
1.20
.26

-.10
6.79
.71
-- .
6.92
-.39
6.91
1.08.
-.40
7.37
.68
-.31
. 7.17
.89
-.31
7.22
.84
n. a.
-.35
7.58
.77
July
n.a.
-.26
7.63
.73
Neither mortgage nor bond yields include allowance for servicing costs which arc
- much higher for mortgages than for 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.
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 bc;
-compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest
rates...
Based on FHA-field-offi.ce 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.
See note for Table 1.
--




- •

MORTGAGE AND BOND YIELDS

Monthly

9

HOME MORTGAGES:
CONVENTIONAL

Aaa CORPORATE BONDS:
VNEW ISSUES

1 II 111 I l"l IIII 11II I-11 111
Y I E L D S P R E A D (FHA MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

Basis points

200

100
• ' " w "

1962




1964

1966

1968

i nil m u m ii mi mil . 0
1970

32
TABLE 17: Conventional Mortgage Terms 1
NEW HOMES
CON- FEES &
TRACT CHARGES EFFEC- MATURITY
(PER
(YEARS)
RATE
TIVE
CENT) RATE
(PER
-CENT)
3
2

DATE

LOAN/
PRICE LOAN
RATIO AMT.
(PER ($000)
CENT)

EXISTING HOMES
CON- FEES &
LOAN/
TRACT CHARGES EFFEC- MATU- PRICE
(PER
RATE
TIVE
RITY RATIO
CENT) RATE (YEARS) (PER
(PER
CENT)
CENT)
2
3

/ -

1968 July
Aug.
Sept.
Oct.
Nov.
Dec.
1969

LOAN
AMT.
($000)

7,04
7.10
7.10
7.09
7.07
7.09

0.85
0.87
0.87
0.88
0.84
0.89

7.17
7.24
7.24
7.23
7.21
7.23

25.5
25.5
25.5
25.6
25.4
25.9

73.7
73.6
74.2
74.5
74.1
74.0

22. 2
22.,6
22. 1
22. 7
22. 5
24. 7

7.10
7.12
7.11
7.09
7.07
7.09

0.83
0.85
0.82
0.84
0.82
0.85

7.23
7.26
7.25
7.22
7.21
7.23

22.5
22.7
22.6
22.5
22.7
23.3

72.6
73.0
72.6
72.4
72.9
73.2

18.5
18.6
18.3
18.3
18.9
20.4

0.84
0.81
0.93
0.96
0.88
0.84
0.91

7.30
7.39
7.47
7.62
7.65
7.76
7.90

25.6
25.6
25.8
25.4
25.8
25.6
25.5

73.6
73.3
73.8
72.6
73.2
73.0
71.9

24. 1 7.18
23. 5 7.28
24.0 7.35
24.,8 7.46
25. 0 7.54
24.9 7.64
24,.5 7.79

0.86
0.86
0.84
0.85
0.83
0.86
0.91

7.32
7.42
7.49
7.60
7.6b
7.79
7.95

22.8
22.9
23.0
23.0
22.7
22.8
22.9

72.6
72.8
72.7
71.8
71.9
71.4
71.7

20.0
19.6
20.2
19.9
19.7
20.1
20.2

-

7.16
Jan.
Feb. *7,26
Mar.
7.32
Apr.
,7.47
May
,7.50
June r / 7.62
July 2 '7.75
1

Compiled by Federal Home Loan Bank Board in "cooperation with Federal Deposit Insurance
Corporation. Data are weighted 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^builde^s; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted
opinions of field-office directors of the Federal Housing Administration, are avail able
-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 & .charges amortized over a 10 year period in addition to the contract
interest rate.




CONVENTIONAL MORTGAGE TERMS
Monthly

Years

MATURITY
NEW

EXISTING

20

80

LOAN/PRICE RATIO

NEW

EXISTING
70

1963




1965

1967

1969
* CHANGE IN SERIES