Full text of H.16 Capital Market Developments : January 26, 1970

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' A
DECOSTHOLLED AFTER SIX M o r a s
m

,

u

P\

" "

' i'

"L.5.8 CunfiJential (F.p.)

January 26, 1970.

JA, 2 9
PEDLiu.^ i... j _,V£
OF RICHMOND
I

/CAPITAL
(MARKET
DEVELOPMENTS

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




7

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




-

TABLE 1: Yields, Volume and Reception
YIELDS

WEEK ENDING:
NEW ISSUE
1969 - Dec.

1970 - Jan.

MOODY'S
.SEASONED
Aaa

8.85
8.70
8.76
2
9
16
23
29jg /

8.48
8,41
8.32
n. a.

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

7.60
7.64
7.73
7.84

517
427
365
25

7.90
7.91
7.92
7.90

0
454
384
557
200e

99
92
82
100
96
79
n. a.
n, a.

586
643
381
563
762
905
698
786

MUNICIPAL BOND MARKET
VOLUME7™
WEEK ENDING:

1969 - Dec.

1970 - Jan.

MOODY'S
SEASONED
Aaa

5
12
19
26

6.34
6.48
6.57
6.57

2
9
16
23
29 £

6.52
6.41
6.36
6.34
n. a.

BOND BUYER
SEASONED 20
BOND INDEX
6.72

6.88
6.90
6.79
6.79

6.61

6.53
6.67
n. a

GROSS
OFFERINGS

PER CENT
SOLD BY END
OF WEEK

BONDS SCHEDULED
WITHIN 28 DAYS

249
230
267
20

97
77
76
91

437
442
338
403

52
180
304
288
250e

87
86
76
76

602

743
994
643
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.




TABLE 2: Details on Inventories
DATE .
OFFERED

AMOUNT
(BGL. $)

R

COUPON.

ISSUER

ORIGINAL
RATING AND
YIELD CALL PROTECTION

ESTIMATED PROPORTION SOLD

Not Available

OFFERED

DATE
| RELEXSED

AMOUNT

I ORIGINAL INCREASE RATING AND ESTIMATED PROCOUPON') YIELD
IN YIELD CALL PROT PORTION RELEASED

ISSUER

Not Available

DATE
1969 - Dec.

26

1970 - Jan.

2
9
16
23£/

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE
370
356
281
r/270
~ 336

.

• |

|
I

19

5

20
30
77
149

1
16
82
lOOe

|
No call protection.
All figures in "mill ions of dollars. .Blue M st is daily average* for
which is -.In i 1 average of three days ended 'Wednesday. All v . u h e r
FRASER

Digitized for


CORPORATES
IN SYNDICATE

ended Friday,except for latest week
nre as of Friday.

BONDS IN SYNDICATE
Friday figures

|

Millions of dollars

CORPORATE BONDS IN SYNDICATE

100

i. i

i

i - I 'i

n

r~

MUNICIPAL BONDS IN SYNDICATE

300
200
loti

SEPT.

DEC.

'68




MAR.

JUN.

1969

SEPT.

DEC.

MAR.

JUN.

1970

SEPT.

\

DEC.

\

TABLE 3: High Grade Bond Yields
NEW
CORPORATE
Aaa 1

DATE,

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND .
BUYER'S
SEASONED
MUNICIPALS 4

1967 - High
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)

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

1968 - High
Low

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(1/26)
4.07(8/8)

1969 - High
Low

8.85(12/5)
6.90(2/21)

7.84(12/26)
6.55(1/3)

6.97(12/26)
5.96(1/24)

6.90(12/18)
4.82(1/28)

--

7.84

6.97

6.79

8.48
8.41
8.32

7.90
7.91
7.92
7.90

7.00
6.92
r/6.91
6.92

6.79
6.61
6.53
6.67

1969 - Dec.

26

1970 - Jan.

2
9
16
23£/

1

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
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

NEW CORPORATE Aaa

MOODY'S
CORPORATE Aaa

U.S. GOVT. 20-YR.
CONSTANT MATURITIES
BOND BUYER MUNICIPAL

1966




1967

1969

1970

TABLE 4: Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
GROSS PROCEEDS
CORPORATE1

PERIOD

STATE AND LOCAL 2

.1969

1968

|

2,075
2,045
2,098

1,771
1,608
1,799

i 1,200e
i
900e

April
May
June

2,748
2,076:
2,530

1,428
1,866
2,411

July
August
September

2,478
1,427
2,427

2,143
1,432
1,557

October
November
December

1,960
2,560e
2,940e

1st
2nd
3rd
4th

1970
January
February
' March

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

3,OOOe
2,6.00 e

1569

1968

1,262.
987
538

1,178
1,158
1,404

1,801
1,109
734

1,318
1,143
1,395

1,092
804
534

1,-469
1,699
1,444

2,129
1,767
2,454

1,264
872
800e

2,230
1,021
1,115

6,218
7,354
6,332
7,460e

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

2,787
3,644
2,430e
2,936e

3,840
3,856
4,612
4,366

13,522
19,904e
27,364e

10,882
16,015
21,965

6,431
8,861
11,797e

7,956
12,008
16,574

i- /
!
;

i

I

1970

.

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

Quarter
Quarter
Quarter
Quarter

Year

6,170

5,107
5,427
4,785
5,654
20,973

1 - Securities and Exchange Commission estimates of gross proceeds.
2
Investment Bankers Association of America estimates of principal amounts.
3
Total gross proceeds 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

TOTAL

1968 - I V
1969 - I
II
III
. IV e/

5,951
6,218
7,354
6,332
7,460

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

2,055
2,075
2,045
2,098
2,748
2,076
2)530
2,478
1,426
2,427
1,960
2,560
2,940

l

GROSS PROCEEDS BY
GROSS PROCEEDS BY
TYPE OF ISSUER
TYPE OF ISSUE
COMMON
BONDS
MEMO:
AND
COMMUNIPUBLIC
PUBLICLY PRIVATELY PFD.
ISSUES INCLUDED
MFG.
UTILITY
CATIONS
PLACED
FOREIGN | CONVERTIBLE
OFFERED
STOCK
2,555
1 922
113
902
1,474
1, 712
1,,435
319
2,657
1 540
2,023
215
1,355
1,407
1,,346
473
3,411
1 623
2,268
227
1,126
1, 773
1,,878
432
3,186
1.,347
1,797
289
750
1, 862
1,•, 544
684
3,365
1,,650
n.a.
2,443
515
1,820
1,,865
570
607
980
• 842
835
1,268
871
1,272
1,279
685
1,222
965
1,060
1,340

965
636
395
509
649
510
514
609
259
479
351
500
800

483
460
807
755
830
694
744
589
482
726
643
1,000
800

40
103
74
38
62
28
137
132
122
35
59
n. a.
n.a.

326
376
578
401
430
463
233
214
167
369
105
110
300

651
403
513
491
513
569
691
875
362
625
270
750
800

Other issuers are extractive, railro.ad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are available.
,




319
627
315
404
784
392
702
493
507
544
745
620
500

.

41
186
56
231
44
197
191
286
126
272
120*
190
260

OTHER
ISSUERS'
2,483
2,993
3,266
2,243
3,206
1,044
860
1,161
972
1,405
915
946
826
433
984
826
1,000
1,380

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury)1

ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

January 1 through January 23.1970
COUPON
OFFER- MOODY'S \
RATE OR
RATINC
ING
NET INTERMATURITY
YIELD
EST COST

Corporate
Debs.
Ohio Bell
100,0
1st mtg.
Iowa Pwr. & Light Co.
15.0
Notes
TRW Inc.
50.0
1st mtg.
Central Pwr. & Lt. Co.
2510
1st mtg.
Commonwealth Edison
100.0
Southeastern Penna. Trans.
Authority
Rev.
15.5
S.F. debs.
Standard Oil Co. (Ohio)
150.0
Newhall Land & Farming Co. Conv. debs.
35.0
Eastern Airlines, Inc.
Conv. sub. debs. 80.0
1st mtg.
Carolina Power & Light
40.0
Connecticut Power & Lt. Co. 1st & ,tef.
40,0
Oklahoma Gas & Electric
1st mtg.
30.0
iS.Fj. debs.
American Finance Sys. Inc. i
30.0
1st & coll.
DelmarVa Pwr. & Lt. Co.
30,0
Greyhound Corporation
Conv. sub. debs. 80.0
Pennsylvania Pwr. & Lt. Co. Pfd. stk.
22.2
Connecticut Light & Pwr. Co. Pfd. stk.
15.3
Orange & Rockland Util.
Com. stk.
15.4
Consolidated Edison Co. of
New York
1st & ref. mtg .125.0
Houston Lighting & Pwr. Co. Conv. debs.
40.0
Ford Motor Company
S.F. debs.
75.0
Ford Motor Company
Notes
125.0
Marathon Oil Company
S.F. debs.
100.0
First Mtg. Investor,
Conv. debs.
35.0
Hilton Hotels Corporation
Conv. debs.
50.0




2010
2000
1975
2000
1975

8.70
8.90
8.75
8.75
8.75

8.70
8.80
8.75
8.65
8.44

Aaa
Aa
A
Aa
Aaa

1972-84
2000
1995
1995
2000
2000
2000
1976
2000
1990

7.16
8 . 50
6.00
8.00
8.70
8.75
8.63
9.25
8;75
6.50

7.16
8.52
6.00
8.00
8.65
8.65
8.63
9.25
8.60
6.50

Aa
A
N.R,
B
Aa
Aa
Aa
N.R.
Aa
Ba
A
Aa

2000
1985
1990
1974
2000
1985
1995

8.90
5.50
8.13
8-1/4
8.50
6.75
5.50

8.90
5.30
8.13
8.20
8.52
6.75
5.50

A
Aa ,
Aaa
Aaa
Aa
N.R.
N.R.

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury)1
23, 1970.
ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

COUPON
RATI-: OR
NET INTEREST COST

OFFERING
YIELD

1971-90
1971-99
1971-2000
1971-89.
1973-2000
1971-2000

6.99
6.84
6.53,6. 83
7.00
8.33
6.64

5.80-7.20
5.50-7.25
5.50-7.00
5.60-7.00
6.90-7.75
5.40-6.95

A
A
A

1973-2005
1972-81
1971-85

6.99
5.69
5.99,5. 96

5.70-7.00
5.10-5.75
5.15-6.10

A
Aaa
Aa

MATURITY

MOODY1:
RATINC

State & local Government
Dallas, Co. Hospital Dist.,
Texas
Rev.
12.0
Dade Co. Sch. Board, Fla.
Rev.
11.5
Howard Co., Maryland
G.O.
10.0
Alabama Highway Authority
Rev.
30.0
Middletown Sewer Auth., N.J. Rev.
31.2
Anne Arundel, Maryland
G.O.
12.0
Seattle Dept. Light & Pwr.,
Washington
Rev.
17.0
New Jersey, State of
G.O.
25.0
San Francisco
G.O.
19.8
New York State Housing
Finance Agency
Bonds
97.9
Jacksonville, Elec. Auth.,
Florida
Rev. ctf.
22.0
Snohomish Co. Public Util.
Dist., Washington
Rev.
15.0
Sacramento Municipal Util.
District, California
Rev.
29.0
City of New York
G.O.
176.9
Maine
3.0.
18.1
San Francisco B.A.R.T.
Rev.
50.0
Rhode Island
3.0.
30 . 5
Jersey City, New Jersey
G.O.
12.9
Michigan City Area SBC, Ind 1st mtg. rev. 11.2
De Kalb Co. Sch. Dist., Ga. G.O.
11.0
Massachusetts, State of
3.0.
60.0
Hennepin, Ramsey, Anoka,
Metropolitan Council,
Minnesota
G.O.
14.0




A

1970-2001

7.22

5.50-7.20

A

1977-82

6.33

5.90-6.30

Aa

1977-2001

6.84

5.80-7.20

Aa

1972-2010
1971-2000
1971-90
. 1972-80
1971-90
1971-78
1973-88
1971-94
1971-90

6.95
7.31
6.10
6.60
6.19
7.90
6.71
6.18
6.08

5.20-6.20
6.00-7.40
5.00-6.33
5.50-6.50
5.25-6.50
6.50-7.90
5.50-6.75
5.20-7.20
5.10-6.55

Aa
Baa-1

1973-84

6.78

5.30-6. 90

A
A-l
Aa
A-l
Aa

TABLE 6: Large Long term Public Security Issues for New'Capital (continue rl)
(Other than U.S. Treasury)1

.
ISSUER

.

1
TYPE 2

AMOUNT'
(MILLIONS
OF
DOLLARS) .

MATURITY

COUPON
|
RATE OR
i ni'FKRNpT INTER- ! K.c
EST COST J YIELD

1970.
MOODY'S
RATING

Other
Federal Land Bank
FHLB
FHLB

Bonds
Consol. bds.
Consol. bds.

198.0
300.0
600.0

1973
1974
1971

8.45
8.40
8.58

8.45
8.40
8.58

Bights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million and over.
In case of State and local government securities, G.O. denotes gem ra l obligation;
'<ev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut., revenue bonds secured only by income from quasi-uti1ities; Rev.-S.T.,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
\
Includes foreign government and International Bank for Reconstruction and
Development issues and non-qu.aranteed issues by Federal Agencies.




TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
As of January 23. 1970.

ISSUER

TYPE

AMOUNT
-(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate

*Central Louisana Elec. Co. 1st mtg.
^Continental Mtg.. Investors Conv. debs.
Kayser-Roth Corporation
Conv. debs.
Montana Power Company
1st mtg.
*Bata Products Corporation Conv. debs.
University Computing Co.
Conv. debs.
Indiana Bell Telephone Co. Debs.
^
Florida Gas Transmission
Company
1st mtg.
*Gilbert Ftexi-Van Corps
Conv. debs.
General Telephone Co. of
the Northwest, Inc.
1st mtg.
Philadelphia Electric Co. 1st mtg.
Orange & Rockland Util. Co. 1st mtg.
*Hyatt Corporation
Conv. debs.
*Guaridan Mtg. Investors
Conv. debs.
*Bulova Watch Company
Conv. debs.
Texas Power & Light Co.
1st mtg. bds.
San Diego Gas & Elec.
1st mtg. bds.
^Michigan Bell Telephone
CompanyDebs.
*Potomac Elec. & Pwr. Co.
1st mtg. 4Jds.
*Gulf States Utilities
1st mtg. bds.




15.0
100.0
20.0
30.0-35.0
15.0
60.0
80.0
. 25.0
15.0
25.0 .
80.0
20.0
20.0
15.0
20.9
30.0
40.0
150.0
35.0
30,0

January
January
January
January
January
January
January

26
26
26
26
27
27
27

January
January

28
28

January 29
February 3
February 4
February 4
February 6
February 6 (rts.
February 9
February 10
February 17
February 18
February 19

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

ISSUER

TYPE

As of January 23; 1970.

AMOUNT
. (MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State and local Government
*0akland Co., Michigan
Washington Suburban Sanitary Dist., Maryland
New York State Dormitory
Authority
King Co., Washington
Nassau Co., New York
San Francisco Port Comm.
Baltimore Co., Maryland
Macomb Co., Michigan
Chicago, Illinois
Chicago? Illinois
*Philadelphia, Pennsylvania
*New York, State
Minneapolis, Minnesota
*Cleveland, Ohio
Los Angeles DEWAPS
*Minneapolis-St. Paul Airports Commission
Minnesota, State of
*Wayne Co., Michigan

G.O.

14,8

G.O.

27.0

Rev.
Rev.
G.O.
Rev.
G.O.
G.O.
G.O.
Airport Rev:
G.O.
G.O.
G.O.
G.O.
Rev.

18.1
13.5
,37.9
11.0
20.0
12.7
29.5
56.0
63.7
63.0
10.7
30.0
24.0

Bonds
G.O.
G.O.

20.0
40.0
26.0

Debs.

100.0

January

27

January

27

January
January
January
January
January
January
January
January
February
February
February
February
February

27
27
27
28
29
29
30
3
3
5
9
9

February 11
February 18
February 19

Other
Province of Ontario

*
1
2

January

28

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; Wyandotte Bldg. Auth., Michigan - 1 8 . 0 , no bids
received.
; "•
Clark Co., Nevada -13.0, no bids were received.
Chicago, Illinois - 48.5,?no bids received.




TABLE 8: Stock Prices and Volume
STOCK PRICES 1
S&P
500 3

DATE .
1967 - High
Low
1968 - High.
Low

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

AMEX 4

NYSE

' AMEX

943.08(9/25) .24.52(12/29)
786.41(1/3) 13.78(1/27)

60.7(8/14)
27.4(1/6)

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

. 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)

968.85(5/14) 32.91(1/3)
769.93(12/17)25.02(7/29)

82.6(10/17)
32.8(4/4)

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

809.20
798.11
782.60
775.61

55.7
53.0
52.2
52.5

28.4
21.5
21.1
20.1

1969 - High
Low
1970 - Jan.

D.J. - IND.

TRADING; VOLUME 2

106.16(5/14)
89.20(7/17)
2
9
16
23 £ f

93.00
92.40
90.92
89.07

26.71
26.97
26.55
26.31

l

Figures other thanjiighs and lows are Fridays only.
for the year and are not necessarily for Fridays.

2

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. From January 3 through July 3, 1969, the exchanges
were open 4 hours each day, 20 hours per week. Beginning July 7, 1969
the exchanges have been open 4 1/2 hours each day, 22 1/2 hours per week.
NYSE is New York Stock Exchange; AMEX is American Stock Exchange.

3

1941-43 = 1 0 .

4

Average dollar value of shares listed*




Highs and lows are

15

STOCK PRICES AND TRADING VOLUME
AM EX

36

STOCK PRICES

32

-

28

-

24

'

D.J.
(Ind.)

128

AMEX PRICE LEVEL INDEX A / 1

J

1 2 0 0 120

S&P's 500-

1120 112

V

\ A

16

/V

W

V

\

/

D.J. IND.

\

\iVW

-

n*

'

8

1

-

1040 104

-

960

96

-

880

88

-

800

80

720

72

Millions of shares

60

AMEX TRADING VOLUME (TOTAL FOR WEEK)

40

.1
:W,

il

20

rj^WiiWu

NYSE TRADING VOLUME (TOTAL FOR WEEK)

1966

1967




S&P
(500) .

I I
| 1 1- 1 1 1 1 ! I1 I1 I1 I1 Ij. I I II
1280

-

20

12

Weekly

j

1968

1969

1970

TABLE 9: Security Credit

END OF PERIOD
Outstanding:

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS1 | BANKS 2 | TOTAL

1
CUSTOMERS'
NET DEBIT
BALANCES

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

1968 - Dec.

6,200

2,710

8,900

9,970

3,717

6,073

1969 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct. ,
Nov. r/
Dec. £/

5,930
5,750
5,590
5,570
5,670
5,340
5,170
5,000
4,940
5,040
5,070
5,030

2,750
2,810
2,780
2,760
2,770
2,740
2,700
2,670
2,620
2,570
2,520
2,600

8,680
8,560
8,370
8,330
8,440
8,080
7,870
7,670 .
7,560
7,610
7,590
7,630

9,042
9,148
8,318
8,044
8,474
8,214
7,515
7,019
7,039
7,243
7,111
7,447

3,597
3,647
3,294
3,077
3,084
3,085
2,783
2,577
2,579
2,753
2,613
2,802

5,445
5,501
5,024
4,967
5,390
5,129
4,732
4,442
4,460
4,490
4,498
4,645
/r

.

Chang e in
Oustanding;
1968 - Dec.
1969 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. r/
Dec. £/

1
2
3

—

-270
-180
-160
-20
100
-330
-170
-170
-60
100
30
-40

•

80

80

761

298

40
60
-30
-20
10
-30
-40
-30
-50
-50
-50
80

-220
-120
-190
-40
110
-360
-210
-200
-110
50
-20
40

-928
-51
-830
-274
430
-260
-699
-496
20
204
-132
336

-120
50
-351
-271
7
1
-302
-206
2
174
-140
189

563
-628
-9
-477
-57
423
- 261
-397
-290
18
30
8
147-

Margin debtj 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: Sayings Flows at Noiibank Depositary Intermediaries
($ millions)

DATE

SAVINGS <
5c LOAN ASSOCIATIONS
MUTUAL SAVINGS BANKS
NET
NET.
SHARE CAPITAL .
REGULAR DEPOSITS 3
NEW
NEW
ANNUAL
ANNUAL
MONEY 2
NET
MONEY 2
GROWTH
GROWTH
NET;
FLOW
RATE 1
RATE 1
FLOVJ

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW
.

NET '
NEWMONEY 2

Not Seasonally Adjusted
1967
1968
1969 £/

5,082
4,208
2,484

1968 - Oct.
Nov.
Dec.
1969 - Oct.
Nov.
Dec. j>/

202
359
694

12
3

"

-23
197
152
48
272
158

2,376
1,143
-760

10,649
7,399
4,024

--

89
293
-26

504
656
1,646

——

-266
180
-250

-406
226
1,074

—

-138
, 260
500
/

1969 - July
Aug.
Sept.
Oct.
Nov.
Dec.ja/

9.3
7.1
3.9

-.

-0.4
3.6
2.8
0.9
4.9
2.9

——
——
—

,,

9.4
6.0
3.0

6,129
2,676
-179

15,731
. 11,607
6,508

446
618
178

706
1,015
2,340

-429
207
-383

-544
486
1,574

---

--

Seasonally Adjusted
26
0.2
225
2.0
446
4.0
-173
-1.5
265
2.4
52
0.5

——
-- '
——__

3
422
598
-125
537
210

9.4
6.3
3.3

8.505
3,819
-939
535
911
x

--

'

(

152

-695
387
-633

0.0
2.5
3.6
-0.8
3.2
1.3

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 96% 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 Banks and Federal Home Loan Bank Board.




SAVINGS FLOWS (seasonally adjusted)
Monthly

M i l l i o n s of d o l l a r s

2000
1600
1200

TOTAL

800
400

400

SAVINGS & LOANS

MUTUAL SAVINGS BANKS

1966

1967




1968

1969

1970

TABLE 11: Mortgage Commitments at Selected Thrift Institutions 1

TOTAL

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

NET CHANGE
OUTSTANDING COMMITMENTS
ALL
ALL
MUTUAL
SAVINGS
. SAVINGS &
SAVINGS &
BANKS
LOAN
LOAN
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, Sea serially Adjusted) 1/

9.7

6. 6

3.1

.01

.09

9.9
10.1
10.3
10.5
10.4
10.2
9.9
9.5
9.2
8.9
8.6

6.7
6.9
7.0
7.2
7.1
7.0
6.8
6.5
6.4
6.1
5.9
5.8

3.2
3.2
3.3
3.3
3.2
3.2
3.1
3.0
2.8
2.7
2.7

.18
.24
.18
.15
-.11
-.18
-.32
-.36
-.31
-.33
-.24

.11
.18
.12
.14
-.06
-.11
• -.22
-.24
-.18
-.23
-.18
.13

MUTUAL
SAVINGS
" BANKS
(N.Y. STATE)

/

Based on data frolti Federal Home Loan Bank Board and Savings Banks Associations of
New York State. Data for savings banks and S&L's include a minor amount of nonresidential commitments. S&L commitments include loans in process. 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.




-.08
.07
.06
.06
.02
-.05
-.06
-.10
-.12
-.13
-.09
-.06

MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted)
Monthly

Billions of dollars

TOTAL

S&L'S

N.Y.MSB'S

Includes building loans beginning August 1967

1960




1962

1964

1966

1968

1970

TABLE 12: Net Change in Mortgage Holdings 1
FINANCIAL INSTITUTIONS
LIFE
MUTUAL
SAVINGS &
INSURANCE
SAVINGS
LOAN
TOTAL I COMMERCIAL
COMPANIES
BANKS
BANKS
ASSOC.
Not Seasonally Adjusted

TOTAL
INCLUDING
FNMA-GNMA
18,197
19,988
23,776

15,874
18,191
21,268

4,705
4,369
6,677

2,760
3,118
2,796

3,761
7,538
9,330

4,648
2,914
2,465

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

1,995
1,997
r/2,254
r/2,095
2,508

1,854
1,889
2,093
1,950
2,336

549
746
751
717
449

233
221
313
310
340

874
810
945
732
903

198
112
r/184
r/191
644

141
108
166
145
172

1969 - Aug.
Sept.
Oct.
Nov*.
Dec.

2,124
1,987
1,795
r/1,636
n.a.

1,596
1,486
1,206
1,034

400
500
300
300
200

171
179
140
141

528
501
589
594

1969- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
. Dec.

2,101
2,202
2,099
2,117
2,032
2,153
1,698
1,910
1,896
1,734
r/1,652

1,948
2,025
r/1,906
1,910
1,808
1,875
1,364
1,380
1,385
1,166
r/1,069
n. a

638
668
632
567
534
440
151
310
383
244
237
347

844
181
687
120
608
158
r/450
151
493
. n. a.
Seasonally Adjusted
885
281
884
266
875
240
899
250
854
251
1,022
230
859
181
720
147
674
137
627
124
r/547
146
536
n.a.

144
207
159
194
169
183
173
193
191
171
139
n.a.

153
177
193
207
224
278
334
530
511
568
583
in. a.

1966:
1967
1968

to Call Report data on real estate loans outstanding as available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and, through August 1968, the Federal National Mortgage Association, and thereafter by FNMA and the Government National Mortgage Association. Data for mutual
savings banks and for Life Insurance companies may differ somewhat from those
derived from regular quarterly series because of minor conceptual differences for
which adjustments are not made in the monthly series. Altogether, these groups
accounted for 87 per cent of the net increase estimated for all holders in 1967.




NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Monthly

Billions of dollars

3.0

2.5

TOTAL, INCL. FNMA - GNMA

2.0 ,

FINANCIAL INSTITUTIONS

1.5

1.0

1966




1967

1968

1969

TABLE 13: Net Increases in Mnrto?™ Debt Outstanding
Billions of dollars, SAAR 2
" QUARTER
1965 - I
II
III
IV '

TOTAL
24.9
25.2
25.8
26.6

RESIDENTIAL

MULTIFAMILY

15.1
15.1
15.5
15.8

3.5
3.5
3.8
3.8

4.2
4.5
4.4
4. 6 •'

28.3
24.2
18.4
15.6

19^0
15.6
10.8
'9.5

14.7
12.1 .
8.3
7.2 -

4.3
3.5
2.6
2.3

6.9
6.5
5.4
4.3

1967 - In
15.5
20.4
Hp
III , 26.3
IV p 28.6

9.9
13.7
19.1
20.9

6.8
10.5
15.3
16.5

3,0
3.3
3.8
4.4 '

26.9
25.8
25.8
31.3

^18.2
17.9
17.7
21.5

15.4
14.8
14.1
17.0

1969 - Ip
30.2
28.4
up
IIIp 26.6

21.6
20.7
19.5

18.0
16.5
15.6

1968 - IP
IIP
Illl

ivp

1

;

2

MULTI-AND
COMMERCIAL

COMMERCIAL'

18.6
18.5
19.3
19.6

;i966 - I
II
III
IV

-

1- to 4FAMILY

1

FARM

8.0
8.1
8.4
7.9

2.2
2.1
2.2
2.4

11.6
10.0
8.3
6.2

2.4
2.2
2.1
1.7

3.8
4.8
4.8
5.1

7.3
8.1
8.8
8.8

1.8
1.9
2.4
2.6

2.8
3.1
2.5
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

3.6
4.2
3.8

6,4
5.3
5.1

10.4
9.4
9.2

2.2
2.4
2.0

.

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 requiredr 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 muItifamily 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

X,

MULTIFAMILY
1965




1967

1969

TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED
1969 - Nov. 3
10
17
24
Dec.

Jan.

IMPLICIT YIELD2(per cent)
COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEAR 1
TOTAL
90,61-YEARl
906TOTAL
& OVER
DAY
MONTH & OVER
OFFERED
MONTH
DAY
6. 6
8.45
8.49
8.44
31.0
44.1
81.7
230.2
6.2
8.49
8.47
8.47
50.6
45.1
101.9
267.4
8.51
8.48
8.50
67.3
10.4
45.0
122.7
242.6
8.50
8.53
8. 54
67.7
13.0
122.3
41.6
233.4

1
8
15
22
29

235.9
242.9
229.4
307.3
269.3

120.6

67.0
77.0
55.4
68.2
79.0

29.4
22.7
29.2
31.0
29.3

8.57

5
12
19
26£/

704.7
637.8

122.7
70.4
8.4
150.7
8.7
81.8
AUCTION CANCELLED
300.0) 3 /

43.9

123.0
121.7
121.8
128.4

24.2
23.2
37.1

22.6
20.1

60.2

8.67
8.75
8.85

8. 58
8.64
8.70
8.78
8.87

8.52
8.57

9.19
9.40

9.19
9.36

9.15
9.40

8.62

8.62
8.69
8.77

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 oh 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.
KNMA
3



announced limit of accepted bids for next week's

FNMA WEEKLY "AUCTION" RESULTS
$ Millions

1 200

AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

150

6 MONTHS

100

1 YEAR
AND OVER

50

3 MONTHS

IMPLICIT YIELD
6 - M O N T H COMMITMENTS

$ Millions

-

'

;

•

"

- •

—

800

-

600

-

400

TOTAL BIDS RECEIVED

200
|

|

[TOTAL BIDS ACCEPTED
1969




•I-•

1

1

1

1
1970

K

1

I

I

I

1

0

TABLE 15: Private Housing Starts and Permits
STARTS
SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL|1-FAMILY I 2 OR MORE
1968 - Dec.

1,509

922

585

1969 - Jan.
Feb.
Mar.
Apr.
May
June
July
. Aug.
Sept.
Oct.
Nov.
Dec.

1,878
1,686
1,584
1,563
1,509
1,469
1,371
1,384
1,542
1,392
1,297
1,245

1,066
975
828
797
883
808
765
723
846
777
783
718

812
711
756
766
626
661
606
661
696
602
514
527

96.4

UNADJUSTED
TYP OF FINANCING

16.3

101.5
14.2
90.0
13.2
131.9
18.9
159.0
23.0
155.5
21.1
147.3
21.5
125.2
20.8
124.9
22.4
129.3
18.3
123.4
25.1
94.6 r/18.1
80.5 ~ 18.8

4.4

75.7

3.8
83.5
3.5
73.3
3.9 109.1
4.4 131.6
4.3 130.1
4.6 121.2
4.7 . 99.7
4.2
98.3
4.8 106.2
5.0
91.5
3-9 r/71.6
4.2 - 57.5

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2
1,463
1,403
1,477
1,421
1,502
1,323
1,340
1,228
1,245
1,201
1,183
1,191
1,177

" 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 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 per.mits 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

Millions of units

Monthly, annual rates

SEASONALLY ADJUSTED

HOUSING STARTS

BUILDING PERMITS
(in issuing areas)

*CHANGE IN SERIES

II I I I I I

PER C E N T OF U N A D J U S T E D TOTAL STARTS

' • j?J! m l l e f

GOVERNMENT UNDERWRITTEN

1964

i

i




1966

1968

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

1

4

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

1959-60 - High
1961-66 - Low
1966 - High
1967 - High
Low
1968 - High
Low

6.26
5.43
6.73
n. a.
n. a.
n. a.
n. a.

n. a.
5.44
6.81
6.81
6.29
7.52
6.78

6.30
5.80
6.70
6.65
6.40
7.40 .
6.75

.23
.25
.30
.11
-.12
.12
-.27

5.25
4.41
5.82_
6.51
5.18
6.79
6.15

1.69
.77
1.16
1.28
.27
1.20
.26

1969 - Aug.
Sept.
Oct.
Nov.
Dec.

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

8.36
8.40
8.48
8.48
8.62

8.20
8.25
8.30
8.35
8.35 -

-. 16
-.15
-.18
-.13
-.27

7.65
7.98
7.89
8.32
8.75

.DATE

CONVENTIONAL
MORT-.
25-YEAR 30-YEAR
GAGES
3

SPREAD. BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES

NEW
Aaa CORPORATE
BONDS

:

.71
.42
.59
.16
-.13

1 . 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.
.
.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
jninimum downpayments, weighted by probable volume of transactionsYields
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
See note for Table 1.
'




MORTGAGE AND BOND YIELDS
Monthly

HOME MORTGAGES:
CONVENTIONAL

Aaa CORPORATE BONDS:

YIELD

S P R E A D ( F H A MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

Basis Points

200

100

100
1962

1964




1966

1968

1970

TABLE 17: Conventional Mortgage Terms

DATE

1968
Nov.
Dec.
1969
Jan.
Feb.
Mar.
Apr.
May
July
Aug>
Sept.
Oct.
Nov.

1

NEW HOMES
CON- FEES &
TRACT CHARGES EFFEC- MATURITY
RATE
(PER
TIVE
(YEARS)
(PER
CENT) RATE
CENT)
2
3
•»

EXISTING HOMES
CON- FEES &
LOAN/
LOAN /
TRACT CHARGES EFFEC- MATU- PRICK
PRICE LOAN
RATIO AMT.
RATE
(PER
TIVE
RITY RATIO
(PER ($000) (PER
CENT) RATE (YEARS) (PER
CENT)
.CENT)
CENT)
2
4
3

7.07
7.09

0.84
0.89

7.21
7 .23

25.4
25.9

74.1
74.0

22.5
24.7

7.07
7.09

7.16
7.26
7.32
7.47
7.50
7.62
7.76
7.86
7.89
7,98
7,98

0.84
0.81
0.93
0.96
0.88
0.84
0.92
0.86
0.92
0.89
0.96

7,.30
7,.39
7,.47
7..62
7,.65
7..76
7..91
8.00
8.,05
8. 13
8. 13

25.6
25.6
25.8
25.4
25.8
25.6
25.5
25.2
25.3
25.4
25.3

73.6
73.3
73.8
72.6
73.2
73.0
72.0
72.3
72.9
72.9
72.9

24.1
23.5
24.0
24.8
25.0
24.9
24.5
24.3
24.7
25.0
24.6

7.18
7.28
7.35
7.46
7.54
7.64
7.79
7.90
7.92
7.98
7.98

e

0.82
0.85

7.21
7.23

0.86 7.32
0.86 7.42
0.84 7.49
0.85 7.60
0.83 7.68
0.86 7.79
0.91 7.94
0.93 8.05
0.92 8.08
0.91 8.13
0.89 8.13

LOAN
AMI.
($000)

22.7
23.3

72.9
73.2

18.9
20.4

22.8
22.9
23.0
23.0
22.7
22.8
22.822.6
22.2
22.2
22.5

72.6
72.8
72.7
71.8
71.9
71.4
71.7
71.2
70.7
70.2
70.4

20.0
19.6
20.2
19.9
19.7
20.1
20.1
19.8
19.2
19.5
19.9

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




CONVENTIONAL MORTGAGE TERMS
Monthly

MATURITY
NEW

EXISTING

l j J 15

L O A N / P R I C E RATIO

NEW

—

EXISTING

1

1

'

1

1 i i I i -I i m
i I I ! 1 1 1 i i i i I I 11

1

Thousands of dollars

LOAN A M O U N T
30
NEW

20
EXISTING

1964




1966

1968

1970
* CHANGE IN SERIES