Full text of H.16 Capital Market Developments : February 16, 1971

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CB!«FiBEEiM. - v K a m m m

A F T E R S I X HFLFFLBS

L.5.8 C o n f i d e n t i a l \ F . R . )

February

'CAPITAL
MARKET
DEVELOPMENTS

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




16,

1971

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

WEEK ENDING:

1971 - Jan.

•
Feb.

Feb.

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
OFFERINGS
OF WEEK
WITHIN 28 DAYS

1
8
15
22
29

7.59
7.31
6.98
6.76

7.48
7.45
7.42
7.36
7.19

345
797
330
525

80
95
93
69

5
12
19,

6.91
6.57
n.a.

7.10
2.07
n.a.

384
637
600e

64
94
n.a.

WEEK ENDING:

1971 - Jan.

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

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

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

MUNICIPAL BOND MARKET
VOLUME 2
GROSS
OFFERINGS

PER CENT
SOLD BY END
OF WEEK

1
8
15
22
29

5.25
5.40
5.00
4.95
4.95

5.58
5.74
5.39
5.13
5.16

507
716

82
86
94
81
48

5
12

5.10
4k 75
n. a.

5.27
5.05
n. a.

343
462
600e

72
70
n.a.

19

773
1,054
748
n.a.
n.a.

42
561
822

BONDS SCHEDULED
WITHIN 28 DAYS
1,377
1,653
1,278
.1,201
1,027
870*/
1,037
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




I

DATE
OFFERED

AMOUNT
(MIL. $)

2/10
2/9
1/27

TABLE 2: Details on Inventories

CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK
ORIGINAL
RATING AND
ISSUER
YIELD CALL PROTECTION
COUPON

30.0
36.0
15.0

Indiana Mich.
Central Pwr. & Lt.
Gen. Tel. Wise,

6-1/2
7.00
7.13

6.35 . A
6.95
Aa
A
7.10

ESTIMATED PROPORTION SOLD

6 yrs.
6 yrs.
6 yrs.

80%
15%
50%

/

OFFERED

DATE
| RELEXSED

1/26

2/11

DATE
1971 - Jan. 15
22
29
Feb.

5
12

AMOUNT

ISSUER

200.0

S.W.Bell

6-7/8

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE
711
96
689
111
856
350
858r
718

COUPON

227
221

ORIGINAL
YIELD
8.60

INCREASE RATING AND ESTIMATED PROIN YIELD CALL PROT. PORTION RELEASED
+22

Aaa

6 yts.

65%

CORPORATES
IN SYNDICATE
48
22
162
308
44

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.




TABLE 3: High Grade Bond Yields

DATE

NEW
CORPORATE
Aaa 1

MOODY'S SEASONED
CORPORATE
Aaa 2

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

BOND
BUYER'S
SEASONED
MUNICIPALS 4

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 (2/26)
6.55 (1/12)

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

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

1970 - High
Low

9.30 (6/19)
7.68 (12/18)

8.60 (7/3)
7.48 (12/31)

7.55 (5/29)
6.17 (12/18)

7.12 (5/29)
5.33 (12/11)

1971 - Jan.

22
29

6.98
6.76

7.36
7.19

6.09
6.05

5.13
5.16

Feb.

5
12

6.91
6+97

7.10
7.07

6.10 r
6.08

5.27
5.05

New corporate issues, with call protection, adjusted (as described iji
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.
1




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

1971

1970

2,636
1,802
3,539

2,075
2,045
2,098

2,600e

1,340
1,214
1,551

1,262
987
538

April
May
June

3,170
3,909
3,389

2,748
2,076
2,530

1,647
995
1,088

1,801
1,110
737

July
August
September

2,768
2,274
3,518

2,478
1,427
2,427

1,338
1,355
1,728

1,097
808
559

October
November
December

3,851
4,050e
3,700e

1,933
2,375
2,532

1,860
1,742
2,190

1,280
886
816

6,218
7,354
6,332
6,840

4,105
3,730
4,421
5,792

2,787 i
3,648
2,464 2,982 l

13,572
19,904
26,744

7,835
12,256
18,048

6,435 !
8,899 '
11,881

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

1970

2,100e

STATE AND LOCAL 2
1969

January
February
March

1971

1

7,977
10,468
8,560
11,601
18,445
27,005
38,606e

1969

Excluding finance companies
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

6,170
7,037

Year
1
2
3

Securities and Exchange Commission estimates of gross proceeds.
Investment Bankers Associatiorr-of America estimates of principal amounts.
Total gross proceeds exclu^Jng offerings of sales and consumer finance
companies.




I
;

*
i

[

L
r

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

QUARTER
OR
MONTH

7,977
.0,468
8,560
LI,601

4,577
6,994
5,987
7,640

V
2,636
1,802
3,539
3,170
3,909
3,389
2,768
2,274
3,518
3,851
4,050
3,700

1,595
1,068
1,914
2,022
3,041
1,931
1,831
1,731
2,425
2,390
2,950
2,300

Jan. e/ 2,750

2,000

-I
II
III
IVe
- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. e/
Dec. e/

1

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
AND
BONDS
MEMO:
PRIVATELY
PFD.
PUBLICLY
ISSUES INCLUDED
MFG.
PLACED
STOCK
FOREIGN | CONVERTIBLE
OFFERED
1,235
1,282
914
1,385

.

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

OTHER
ISSUERS 1

2,147
2,190
1,659
2,576

222
135
83

922
710
287
786

2,584
2,445
2,314
2,869

2,085
2,812
2,714
2,996

766
2,162
868
1,320

2,543
3,048
2,663
4,417

516
266
471
447
399
436
320
205
389
385
300
700

525
468
1,154
701
468
1,021
617
338
704
1,076
800
700

61
33
128
89
20
26
68
11
4
4

387
249
286
398
230
82
107
59
121
386
200
200

811
357
1,416
689
817
939
638
682
994
1,094
1,025
750

639
540
906
1,109
600
1,103
843
630
1,241
1,101
970
925

234
226
306
62
1,747
353
144
279
445
370
675
275

952
680
911
1,310
744
994
1,143
682
838
1,287
1,380
1,750

300

450

80

505

465

380

1,400

x

\

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.




COMMUNICATIONS

\

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

TYPE ''

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

February 1 thru February 12., 1971

i.ullVON
RAIFC OR
KILT I#/IT:RE5I' COST

MOOI '<,
RATt.(?

Corporates
Texas Pwr. & Lt. Co.
Pub. Serv. Co. of Colo.
Unlroyal Inc.
Pacific Pwr. & Lt. Co.
Niagara Mohawk Pwr. Co.
Penna. Pwr. & Lt. Co.
Central Pwr. & Light Co.
American Tel. & Tel. Co.
Indiana & Mich. Elec. Co.
Indiana & Mich. Elec. Co.
Reliance Elec. Co.
Union Bank




1st. Mtg.
30.,0
1st. Mtg. bdsi 40.
.0
Debs.
100..0
1st. Mtg.
40.,0
1st. Mtg.
65..0
Debs.
60,.0
1st. Mtg.
36.,0
Debs
500.,0
Cum pref stk 30.,0
1st Mtg.
30.,0
Debs.
30.,0
Cap notes
30. 0

1

2001
2001
1996
2001
2001
2001
2001
2001

7. 13
7.,25
5. 50
7.,88
7.,38
7.,25
7.,00
7.,00

6.95
7.17
5.50
7.90
7.25
7.15
6.95
7.06

Aaa
Aa
Ba
Baa
A
Aa
Aa
Aaa

' 1978
1996
2001

6..50
7.,20
7 .35

6.35
7.20
7.35

A
A
--

TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury) 1
February 1 thru February 12, 1971

ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
' YIELD

MOODY'S
RATING

State and Local
California
Prince William Co, Va.
Los Angeles DWAP
Anne Arundel Co., Md.
Yonkers,N. Y.
Hartford, Conn.
Alaska
Peabody, Mass.
San Antonio, Tex.
Monroe Co., N, Y.
Vermont, State of
Dallas-Ft. Worth Airport, Tex.
New York, State of
Detroit, Mich.
Tennessee

*
1
2

3

Bds.
G.O.
Rev.
G.O. x
G.O.
G.O.
G.O.
G.O.
Rev.
G.O.
G.O.
Rev.
Bds
Rev.
G.O.

100.0
15.0
18.0
18.0
16.3
14.4
21.3
11.0
10.0
16.2
25.0
75.0
96.0
20.0
66.0

1980-20
1972-1990
1977-96
1972-2001
1971-88
1972-2009
1972-1992
1990-91
1975-90
1971-2000
1972-90
1979-2000 ,
1972-2001
1971-2002
1972-91

5.52
4.69
5.47
4.93
4.77
5.07
—

4.65
• • •

4.29
5.76
4.26

3.90-5.70
2.75-5.00
3.60-5.30
2.80-5.50
2.70-5.00
2.60-5.30
3.00-5.80
2.80-5.20
3.10-4.90
2.20-5.00
2.25-4.65
5,00-6,79
2.25-4.75
2.80-6.00
2.40-4.90

Rights 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 general obligation;
Rev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-Ut. , revenue bonds secured only by income from quasi-utilities; Rev.-S.T. ,
revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies,




Aa
A
Aa
A
A
Aaa
Baa
Aa
Baa
Aaa
Aaa
Baa
Aa
A
Aa

1

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)
A s q £ F e b r u a r y
12>

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
49.5
90.0
49.5
50.0
50.0

February
February
February
February
February

16
16
16
17
17

1st mtg
S.F. debs
Conv debs
1st mtg
Debs
Debs
1st mtg
Debs
Ctfs.
1st mtg
Debs

35.0
100.0
50.0
50.0
50.0
50.0
35.0
30.0
32.0
45.0
35.0

February
February
February
February
February
February.
February
February
February
February
February

18
18
22
23
23
23
24
24
25
25
25

Debs
Notes
Bonds
Bonds
Conv debs
Notes
1st mtg

30.0
20.0
50.0
25.0
100.0
20.0
16.0

February
February
February
February
February
February
February

Maine Yankee Atomic Pwr Co.
1st mtg
Conv debs
Chemical New York Corp.
S.F. debs
*Harsco Corp.
Debs
Columbia Gas System Inc.
1st mtg
Duquense Light Co.
Debs.
Pacific Tel. & Tel. Co.
Bonds
Rochester Telephone Co.
1st mtg
Burlington Northern, Inc.
Utah Pwr & Lt. Co.
let mtg
Natural Gas Pipeline Co of Am, Debs
Virginia Elec & Pwr Co.
1st mtg
Arkansas Pwr & Lt. Co.
1st mtg
1st mtg
Ohio Pwr Co.
Conv debs
Georgia-Pacific Corp 1
S.F. debs
*North Am. Rockwell Corp.
1st mtg
*Central Tel. & Util Corp.
Debs
Southern Natural Gas-Cd.
1st
mtg
Dugnesne Light Co.
*American Metal Climax Inc.
Debs

50.0
50.0
30.0
75.0
35.0
200.0
30.0
60.0
35.0
40.0
90.0
30.0
40.0
125.0
100.0
20.0
50.0
35.0
100.0

Georgia IVr. Co.
Wisconsin Tel. Co.
Houston Lighting & Pwr. Co.
*Dana Corp,
M . Lowenstein & Co.
Jersey Central Pwr & Lighting
Co,
US Plywood-Champion Paper Inc
*Ford Motor Co.
Northern States Pwr Co.
Texas Eastern Trans Corp.
Swift & Co.
South Carolina Elec. & Gas Co
Walgreen Co.
American Airlines Inc.
Gen'l Tel. Co. Florida
Hart; Schaffner & Marx
McCulloh Properties Credit
Corp.
Microd t Inc.
Beneficial Corp
Beneficial Corp
Occidental Petroleum Corp.
Monumental Corp
Alabama Gas Co.




1st mtg
Debs
1st mtg
Debs
Debs

1971

March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March

2
3
4
4
8
9
11
11
16
17
17
18
22

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

ISSUER

TYPE

(continued)
AMOUNT
(MILLIONS
OF
DOLLARS)

As of February 12, 1971
APPROXIMATE DATE
OF OFFERING

Corporate (cont'd)
*Gen'l Elec. Co.
*Pet Inc.
*Avco Financial Services Inc.

New England Telephone &
Telegraph Co.




Debs
Debs
Debs

200.0
35.0
50.0

March
March
March

Debs

200.0

May

25

11
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)'

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

^

g f

,^ruary

12,

1971

APPROXIMATE DATE
OF OFFERING

State and Local
*West Virginia, State of
Los Angeles Co. Fid Ctr Dist Cal
Minnesota
Prince Georges Co., Md.
University of Louisville, Ky.
Newark, N.J.
St. Louis, Missouri
Calif. State Colleges
Hawaii, State of
Port of New York Auth.
Louisiana, State of
Pittsburgh Stadium Auth., Pa.
Virginia Public Sch Auth
Los Angeles Harbor Dept., Cal.
*New York St. Hsg. Finance Agcy.
Texas Wtr. Development Bd.
Texas, State of
Ohio, State of
San Bernardino, Calif. Redevp.
Agency
Maryland, State of
New York State Dorm. Auth.
Roanoke, Va.
Dallas, City of
Broward Co. S/D, Fla.
San Antonio, Tex
*Washington St. Bd Coram College Bi
Buffalo, N.Y.
Baltimore, M d .
*
1
2

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

45.0
24.0
51.8
26.2
14.2
18.8
10.0
13.7
55.0
100.0
50.0
35.0
25.0
16.0
103.8
25.0
25.0
75.0

Bonds
G.O.
G.O.
G.O.
G.O.
G.O.
G.O.
Bonds
G.O. •
G.O.

13.5
56.3
29.5
10.1
27.0
18.6
13.0
21.0
22.1
35.2

February
February
• February
February
February
February
February
February
February
February
February
February
February
February
February
February
February
February
February
March
March
March
March
March
March
March
March
March

16
16
17
17
17
17
17
17
17
17
18
18
18
24
24
24
25
25

2
2
2
3
3
4
4
9
16

I
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 arid
Development issues and non-guaranteed issues of Federal Agencies.




12

TABLE 8: Stock Prices and Volume
TRADING; VOLUME 2

STOCK PRICES 1
DATK

NYSE 3
INDEX

1
1

D.J. - IND.

AMEX4

NYSE

AMEX

1968 - High
Low

61.27(11/2) 985.21(12/13)
48.66(3/5)
8 25.13 (3/21)

33.24(12/20)
21.97(3/25)

17.1(7/12)
8.3(3/29)

.3(1/19)
2.9(3/29)

1969 - High
Low

50.32(5/14)
49.31(7/29)

968.85 ( 5/14)
769.93(12/17)

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

16.5(3/29)
8.6(8/29)

8.0(1/31)
3.6(11/21)

1970 - High
Low

52,36(1/5)
37.69(5/26)

842.00(12/29)
631.16(5/26)

27.02(1/8)
19.36(5/27)

18.5(12/4)
7.8(8/14)

7.1(1/2)
1.8(8/14)

1
8
15
22
29

50.23
50.46
51.16
52.11
52.64

838.92
837.01
845.70
861,31
868.50

22.75
23.10
23.52
23.93
24.32

15.6
14.0
17.4
18.1
20.2

5
12

53.36
54.16

876.57
888.83

24.87
25.37

21.1
22.1

1971 - Jan.

Feb.

1.

Figures other than highs and lows are Fridays only,
for the year and are not necessarily for,Fridays.

4.4
' 3.6
4.3
4.7
5.3
6.9
6.7

Highs and lows are

NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Volume figures are daily averaged for the entire week,
(millions of shares).
Trading is normally conducted for 5-1/2 hours per day and 5 days per week,
or
27-1/2 hours per week. In recent years, however abbreviated trading to
the extent, and over the time periods, shown below;
Hours/
Days/
Hours/
Through:
Day
Week
Week
August 8, 1967
August 20, 1967
4
5
20
January 22, 1968
March 1, 1968
4
5
20
June 30, 1968
December 31, 1968
5-1/2
4
22
January 3, 1969
July 3, 1969
4
5
20
July 7, 1969
December 31, 1969
4-1/2
5
22-1/2
January 2, 1970
May 1, 1970
5
5
25
3.

12/31/65= 50

4.

Average dollar value of shares listed.




13
TABLE 9: Security Credit
.

END OF PERIOD

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

CUSTOMERS'
"NET DEBIT
BALANCES

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

Outstanding:
1969 - Dec.

4,970

2,580

7,550

7,445

2,803

4,642

1970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

4,680
4,570
4,520
4,360
4,160
4,150
3,800
3,810
3,920
4,010

2*430
2,370
2,370
2,330
2,290
2,290
2,290
2,300
2,330
2,270
2,320
2,330

7,110
6,940
6,890
6,690
6,450
6,150
6,090
6,110
6,250
6,280
6,330
6,360

6,683
6,562
6,353
5,985
5,433
5,281
(4)

2,626
2,563
2,441
2,248
2,222
2,009
(5)2,180
2,083
2,236
2,163
2,197
2,286

4,057
4,099
3,912
3,724
3,211
3,272

'

4,010
4,030

(4)
(4)

(4)

(4)
(4)

(4)
(4)
(4)
(4)

(4)
(4)

Change in
Outstanding:
1969 - Dec.

-100

60

-40

334

190

144

1970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-290
-110
- 50
-160
200
- 10
-350
- 10
110
90
2
18

-150
- 40

-440
-170
- 50
-200
240
-300
- 60
-20
140
30
52
28

-762
-121
-209
-368
-552
-152

-177
-163
- 22
-193
- 26
-213
171
97
153
- 73
34
89

-585
42
-187
-188
-513
- 61

—

- 40
- 40
—--

10
30
- 60
50
10

—• -- .
• --

--

"

——

-

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
($ millions)
/

DATE

MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
NEW
ANNUAL
MONEY 2
GROWTH
NET
FLOW
RATE 1

TOTAL
SAVINGS & LOAN ASSOCIATIONS
DEPOSITS
NET SHARE CAPITAL
ANNUAL
ANNUAL
NEW
NET
GROWTH
NET
GROWTH
MONEY 2
RATE 1
FLOW
FLOW
RATE 1
\

NET
NEW
MONEY 2

Not Seasonally Adjusted
1968
1969
1970 E./

4,203
2,549
4,199

1969- Oct.
Nov.
Dec.

-138
257
571

1970 - Oct.
Nov. Dec £/

276
497
900

7.0
4.0
6.3

—
—

1,143
-763
860

7,432
4,019
11,048

266
179
-237

-406
226
1,069

138
388
300

1,130
1,098
2,696

6.0
3.1
8.2

-—
•—
--

11,635
6,568
15,247

-430
207
-387

-544
483
1,640

--

1,064
1,044
1,154

1,406
1,595
3,596

—w

1
2
3

497
268
437.
444
531
557

8.8
4.7
7.6
7.7
9.1
9.5

—
-—
-—

Seasonally Adjusted
1,776
15.5
785
6.8
1,393
11.9
1,399
11.9
1,092
9.2
1,721
14.3

—

--

3,881
-1,766
6,148
-696
386
-624
1,202
1,432
1,454

"

"

1970 - July
Aug.
,
Sept.
Oct.
Nov.
Dec. ]>/

6.3
3.4
7.5

2,738
-1,003
5,288

—
—
—
-—
—

2,273
1,053
1,830
1,843
1,623
2,278

13.3
6.1
10.5
10.5
9.2
12.8

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.




--—
—
-—

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

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

l

TOTAL

1

OUTSTANDING COMMITMENTS
1
NET CHANGE •
MUTUAL
ALL
ALL
MUTUAL
1
SAVINGS
'
SAVINGS
SAVINGS &
TOTAL
SAVINGS &
BANKS
BANKS
LOAN
LOAN
(N.Y. STATE)
(N.Y. STATE)
ASSOCIATIONS
ASSOCIATIONS
(Billions of Dollars, S< iasonally Adjusted) 1/

8.4

5.8

2.6

-.25

-.12

8.2
7.9
7.6
7.8
8.0
8.2
8.6
r8.8
9.1
9.3
9.4
9.8

5.6
5.4
5.2
5.4
5.8
6.1
6.5
6.8
r7.1
7.4
7.5
7.6

2.6
2.5
2.5
2.4
2.2
2.1
2.0
2.0
1.9
1.9
1.9
1.9

-.17
-.30
-.26
.13
.24
.22
.38
.24
.24
.32
.34
.55

-.22
-.23
-.21
.26
.38
.30
.42
.33
.39
.39
.33
.32

-.13
.04
-.07
-.05
-.13
-.14 .
-.09
r-.04
r-. 08
-.10
-.06
-.07
-.22

Based on data from 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.




16

TABLE 12: Net Change in Mortgage Holdings 1

DATE

FINANCIAL INSTITUTIONS
LIFE
MUTUAL
TOTAL
SAVINGS &|
INSURANCE
SAVINGS
LOAN
1 INCLUDING TOTAL 1 COMMERCIAL
ASSOC.
| COMPANIES
BANKS
BANKS
FNMA-GNMA
1
Not Seasonallv Adlusted
18,105
20,016
23,781
24,051

15 ,782
18 ,219
21 ,273
19 ,676

4,705
4,639
6,677
5,535

2,720
3,153
2,787
2,682

3 ,761
7 ,520
9 ,350
9 ,407

4,596
2,907
2,459
2,052

1969 - Nov.
Dec.

1,636
2,120

1 ,042
1 ,475

300
200

151
325

450
533

141
417

1970 - Nov.
Dec.

2,184
n.a.

1 ,932
n.a.

300
200

183
n.a.

1 ,322
1 ,664

1966
1967
1968
1969

127
n.a.

'

FNMA-GNMA

2,323
1,797
2,508
4,375
594
645
252
n.a.

Seasonallv Adlusted
1,913

1 ,315

314

279

571

151

598

1,469
1970 - J a n .
1,542
Feb.
1,330
Mar.
1,351
Apiy
1,485
MayX
J u n e ^ - 1,749
2,083
July
1,817
Aug.
2,091
Sept.
2,074
Oct.
2,186
Nov.
n.a.
Dec.

919
1;,044
809
844
1:,050
1:,281
1.,575
1 ,409
;
1.,727
1.,754
1:,958
n.a.

231
199
140
76
65
81
165
168
228
195
224
312

25
143
186
188
155
201
142
175
245
170
176

452
482
322
385
631
777
1 ,055
983
I.,103
1.,189
1 ;,427
1:,702

211
220
161
195
199
222
213
83
151
200
131

550
498
521
507
435
468
508
408
364
320
228

1969 - Dec.

1

Monthly data for commercial banks based on Federal Reserve estimates benchmarked
to Call Report data on real estate loans outstanding as available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and, 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 Lite Insurance companies may differ somewhat from those
. derived_.from regular quarterly series because of minor conceptual differences for
which adjustments arc not made in the monthly series. Altogether, these groups
accounted for 82 per cent of the net increase estimated for all holders in 1 9 6 9 .




17

TABLE 13: Net Increases in Mortgage Debt Outstanding

1

Billions of dollars, S A A R ^
f
•

QUARTER

TOTAL

RESIDENTIAL 3

1- to 4FAMILY

MULTIFAMILY
2.6
2.1

5.5
4.1

8.2
6.0

2.2
1.8
1.8
1.8
2.5
2.8

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

1966 - II
IV

18.6
15.1

10.9
9.1

.8.3
7.0

1967 - I
II
III.
IV

15.9
20.7
26.6
27.3

10.3
13.9
19.2
19.8

7.0
10,5
15.3
16.0

3.3
3.4
3.9
3.8

3.9
5.0
4.9
4.8-

7.3
8.4
8.8
8.4

51968 - I p
#
1%)
1
IIIp
1
IVp

27.7
26.2
26.0
29.6

19.0
18.2
17.7
20.2

15.8
15.0
14.1
16.4

3.1
3.2
3.4
3.8

6.4
5.9
6.5
7.5

9.4
9.2
10.2
11.1

2.3
2.2
1.8 .
1.8

1969 - I p
IIP
IIIp
IVp

31.3
28.9
26.5
30.4

29.0
21.5
19.3
18.3

18.6
16.8
14.6
13.0

4.4
4.7
4.7
5.3

6.2
5.2
5.3
5.4

10.4
10.1
10.0
10.7

2.2
2.2
1.8
1.4

1970 - I'p
ii>
III p
IVp

20.3
23.4
26.9 "

13.8
16.9
20.9

8.8
11.5
15.0

5.0
5.4
6.0

5.0
5.0
4.2

9.8
9.8
10.1

1.5
1.5
1.7

Derived from edata on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration,
Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolation
extrapolations, where required, estimated mainlv bv Federal Reserve.
May differ somewhat from related flow of f u K d T ^ r i e s mainly b i B F u I F ^ f more
aggregative type of seasonal adjustment.
Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.




\
T A B L E 14:

FNMA Weekly " A u c t i o i V ' / R e s u l t s

C O M M I T M E N T S IN

IMPLICI

5? M I L L I O N S

YIELD2(per

cent)

ACCEPTED
WEEK
ENDED
1970

MONTH

YEAR '
OVER

MONTH

1-YEAR '
& OVER

180.2

441.3
575.0

- Aug

6

TOTAI

TOTAL
OFFERED

1

215.1
117.0

384.2
207.8
149.8
149.7

Oct.
341.5
222.4

181.2
170.3

166.5

127.8
124.7
48.1

165.5

60.6

Note:

Under

the

100.1
75.8

FNMA a u c t i o n

u n d e r w r i t t e n m o r t g a g e s bid
ject to an o v e r - a l l d o l l a r

system, approved

sellers

of G o v e r n m e n t -

Cor FNMA forward p u r c h a s e c o m m i t m e n t s , s u b limit a n n o u n c e d by FNMA in a d v a n c e .
Bids

a c c e p t e d b y FNMA are for d e l i v e r y at the s e l l e r ' s o p t i o n , and at any.
time w i t h i n tjhe s p e c i f i e d p e r i o d .
B i d s on p r o p o s e d h o m e s r e l a t e to
c o n s t r u c t i o n / n o t yet s t a r t e d on w h i c h m o r t g a g e s m a y be delivered, o n l y
after

c o m p l e t i o n and

occupancy.

1

For " p r o p o s e d

2

A v e r a g e s e c o n d a r y m a r k e t yield a f t e r a l l o w a n c e for c o m m i t m e n t fee and
r e q u i r e d p u r c h a s e and h o l d i n g of FNMA s t o c k , a s s u m i n g p r e p a y m e n t of
15 y e a r s for 3 0 - y e a r G o v e r n m e n t - u n d e r w r i t t e n m o r t g a g e s .
Yields shown
are g r o s s , b e f o r e d e d u c t i o n of 3 8 b a s i s p o i n t s fee paid by i n v e s t o r s
to s e r v i c e r s .
P r i o r to A u g u s t 1 0 , 1 9 7 0 the s e r v i c i n g fee w a s 5 0 b a s i s p o i n t s .




construction"

of n e w h o m e s o n l y .

19

TABLE 15: Private Housing Starts and Permits
STARTS

DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

UNADJUSTED
TYP:E OF FINANCING
FHA VA 1 OTHER

TOTAL
L

1969 - Dec.

1,402

776

626

84.1

1970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug. r
Sept. r
Oct. r
Nov. V
Dec.p

1,059
577
725
1,306
708
1,392
1,224
697
1,242
728
835
1,393
827
1,603
1,425
838
881
1,509
890
1,583
930
1,688
1,987 1,204

482
581
684
527
514
558
776
587
627
693
758
783

66.4
74.3
114.7
128.4
125.0
135.2
140.8
128.7
130.9
140.9
126.9
117.6

1

2

23 .2

BUILDING
PERMITS
(SEASONAL!
ADJUSTED
ANNUAL
RATE) 2

4.2

57.9

1,239

16 .5 3.4
17 .5 3.9
25,.2 4.8
32,.4 5.4
37,.1 5.2
40,,7 5.1
43.,4 5.3
34.,1 5.6
34.3 5.3
40. 4 5.8
33. 7 5.5
63. 2 5.7

46.5
52.9
84.7
90.6
80.8
89.4
92.1
87.7
91.3
94.7
87.2
48.7

1,013
1,137
1,099
1,263
1,321
1,306
1,275
1,326
1,371
1,521
1,489
1,737

Total starts are Census estimates including farm for both permit-issuing and
nou-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 permits reflect direct adjustment for differences in the number of working days per
month, as well as other differences in timing and coverage.




20

T A B L E 16: Mortgage and-Bond Yields
FHA
MORTGAGES
DATE
25- YEAR

! CONVEN2

TIONAL
MORT30-YEAR | GAGES
'

-60 - H i g h
-66 - L o w
-High .
- High
- Low
1968 - H i g h
Low
1969 - H i g h
/Low

6 .26
5 .43
6 .73
n
n
n
n

1959
1961
1966
1967

1

n,

1970 . - Aug.
Sept.
Oct.
Nov.
Dec.

1

2

3

4

n.a.
5.44
6.81
6.81
6.29
7.52
6.78
8.62
7.99
9.07
9.01
8.97
8.90
8.40

1
j
j

3

1

NEW
S P R E A D BE- 1
TWEEN Y I E L D S ! A a a C O R ON C O N V . &
BORATE
FHA M O R T BONDS
GAGES
4 .

| S P R E A D BETWEEN
| YIELDS ON NEW
i C O R P O R A T E BONDS
I
AND
I FHA M O R T G A G E S

6.30
5.80
6.70
6.70
6.40
7.40
6.75
8.35
7.55

.23
.25
.30
.11
-.12
.12
-.27
.40
.13

5.25
4.41
5.82
6.51
5.18
6.79
6.15
8.75
6.91

1.69
.77
1.16
1.28
.27
, 1.20
1
.26

8.60
8.50
8.50
8.45
8.30

-.47
-.51
-.47
-.45
-.10

8.48
8.42
8.63
8.34
7.80

.59
.59
.34
.56
.60

1.08
-.13

N e i t h e r m o r t g a g e nor bond yields include a l l o w a n c e for servicing costs which are
much higher for m o r t g a g e s than for bonds.
Generally, bonds pay interest semi- '
annually; m o r t g a g e s , m o n t h l y .
M o r t g a g e yields, if computed as equivalent to
a semi-annual interest i n v e s t m e n t , would be slightly higher than given-in the
table.
Based on F H A - f i e l d - o f f i c e opinions about average bid prices in the private
secondary m a r k e t for n e w - h o m e m o r t g a g e s for immediate delivery.
Separatedata available for 25-year a n d - - b e g i n n i n g July 1961--30-year m o r t g a g e s with
m i n i m u m ^ d d w n p a y m e n ts, weighted by probable volume of transactions.
Yields
computed by FHA, assuming prepayment period of 12 years for 25-year m o r t g a g e s
aricl 15 years for 30-year m o r t g a g e s .
Over the period for which they can be
c o m p a r e d , the m o v e m e n t of the two m o r t g a g e yield series has been similar.
Dashed lines indicate periods o-f adjustment to changes in contractual interest
rates.
Based on F H A - f i e l d - o f f i c e opinion on typical interest rates (rounded) on conventional first m o r t g a g e s prevailing in the market areas of insuring officecities.
B e g i n n i n g with A p r i l 1960, rate relates only to n e w - h o m e m o r t g a g e s ;
prior to that date, rate related to both new as w e l l as existing-home m o r t gages . Dashed line indicates this change in the series.
See note for T a b l e 1.




21

TABLE 17: "Conventional Mortgage Terms

DATE

NEW HOMES
CON- FEES &
1.
" TRACT CHARGES EFFEC- I MATURITY
(PER
(YEARS)
RATE
TIVE
(PER
CENT) RATE
CENT)
3
2
1

LOAN/
PRICE . LOAN
RATIO AMT.
(PER ($000)
CENT)
4

1

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

LOAN
AMT.
($000)
4

1969
Dec.

8.07

1.06

8.25

25.4

71 .9

25.0

8.08

0.93

8.24

22.9

70.6

20.8

8.16
8.23
8.29
8.23
8.28
8.31
8.32
8.35
8.31
8.33
8.26
8.20

1.08
1.09
1.11
1.02
0.98
0.99
1.01
0.98
1.03
1.05
0.99
1.07

8.34
8.41
8.47
8.40
8.45
8.48
8.49
8.52
8.48
8.51
8.43
8.37

25.0
24.2
25.0
24.8
25.3
25.1
25.1
24.8
25.2
25.1
25.3
25.9

69 .3
71 .8
71 .1
71,.1
71,.7
71,.3
71..5
71. 6
72. 7
72. 4
72. 1
74.0

25.1
24.9
25.1
24.5
25.3
25.6
24.9
25.5
25.3
24.8
25.2
25.7

8.13
8.23
8.26
8.20
8.18
8.19
8.21
8.25
8.27
8.20
8.18
8.12

0.94
1.02
0.98
0.90
0.94
0.98
0.95
0.89
0.88
0.88
0.85
0.84

8.29
8.41
8.43
8.35
8.34
8.36
8.37
8.41
8.42
8.35
8.32
8.26

22.4
22.4
22.6
22.8
22.8
23.0
23.1
23.1
22.8
22.8
22.8
23.3

70.3
70.2
70.4
70.4
70.3
71.5
71.5
71.7
71.7
71.5
71.5
71.9

20.5
20.4
20.6
20.4
21.1
21.5
21.7
21.4
21.0
20.5
21.1
21.8

1970
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov. r/
Dec.

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-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.

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.
„

4

Derived by FRB.