Full text of H.16 Capital Market Developments : February 22, 1971

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DECOSTBOLLED AFTER SIX MONTIS

L.5.8

February 22, 1971

CAPITAL
MARKET
.OPMENTS

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.o.

Not available




TABLE 1: Yields, Volume and Reception
YIELDS
MOODY'S
SEASONED
1
NEW,ISSUE
Aaa

WEEK ENDING:

1971 - Feb.

5
12
19
26

Feb.

7.10
7.06 V
7.07

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

WEEK ENDING:

1971 -

6.91
6.97
7.11

5
12
19
26

5.10
4.75
4.85

5.27
5.05
5.27
n.a.

CORPORATE BOND MARKET
VOLUME: 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULE!)
OFFERINGS
OF WEEK
WITHIN 28 DAYS
384
637
522
75 Oe

64
94
76

MUNICIPAL BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
OF WEEK
OFFERINGS
343
462
602
325e

72
69
63
n.a.

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

BONDS SCHEDULED
WITHIN 28 DAYS
870
1,037
1,070
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.)
j 2 Millions of dollars unless otherwise indicated.
|

Note:

See footnotes to Table 3




TABLE 2: Details on Inventories
DATE
OFFERED

AMOUNT
(MIL. 9)
35.0
100.0
50.0
50.0
90.0
30.0
30.0

2/18
2/17
2/17
2/17
2/16
2/11
2/10

DATE
| RELEXSED

OFFERED

Jersey Cent'1 P & L
U.S. Plywood
Dana Corp.
Houston Lt. & Pwr.
Wisconsin Tel.
X Union Bk. Los Angeles
'Indiana Mich.

8.13
8.00
7.30
7.25
7.25
7.35
6.50

8.00
8.05
7.30
7.15
7.15
7.35
6.35

A
A
Aaa
Aaa

5
10
10
5
5

ESTIMATED PROPORTION SOLD
60%
95%
80%
50%
25%
80%
80%

yrs
yrs
yrs
yrs
yrs

__

M—

A

6 yrs

CORPORATE BONDS RELEASED FROM SYNDICATE ^DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROISSUER
COUPON
YIELD
IN YIELD CALL PROT. PORTION RELEASED

. AMOUNT

Texas P & L
Central P & L
Georgia P & L

7-1/8
7.00
7.38

INVENTORIES 1
MUNICIPALS
BLUE LIST
I
IN SYNDICATE

DATE

1

RATING AND
J [ORIGINAL
COUPON 1 YIELD CALL PROTECTION

ISSUER

30.0
36.0
49.5

2/18
2/16
2/19

2/4
2/9
2/16

!

I

6.95
6.95
7.29

+31
+34
+34

Aaa
Aa
Aa

5 yrs
5 yrs
5 yrs

20%
75%
60% ;

CORPORATES
IN SYNDICATE

1971 - Jan.

22
29

689
856

111
350

22
162

Feb.

5
12
19

858
764
787

227
221
394

308
44
133

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
Aaa1

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 - H i g h
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
19

6.91
6*97
7.11

7.10
7.06
7.07

6.10
6.08
6.14

5.27
5.05
5.27

1

New corporate issues, with call protection, adjusted (as described in
footnote 1 of Table 1) to a Aaa basis.
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.
a
Note--Highs and lows are for individual series and may be on different dates
for different series.
2




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

*

GROSS PROCEEDS
CORPORATE 1

PERIOD

STATE A N D LOCAL 2

1971

19/0

1969

1971

1970

1969

2,750e

2,636
1,802
3,539

2,075
2,045
2,098

2,600e

1,340
1,224
1,555

1,262 ;
987 '
538 ;

April
May
June

3,170
3,909
3,389

2,748
2,076
2,530

1,647
1,004
1,081

1,801
1,110
737

July
August
September

2,768
2,274
3,518

2,478
1,427
2,427

1,356
1,358
1,758

1,097 :
808
559 5

October
November
December

3,777
4,182
3,980

1,933
2,375
2,532

1,924
1,748
2,190

1,280
886
816

7,977
10,468
8,560
11,939

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

4,119
3,732
4,472
5,862

2,787
3,648
2,464 ;
2,982 ,

18,445
27,005
38,944

13,572
19,904
26,744

7,851
12,323
18,185

6,435 ;
8,899 ;
11,8811

January
February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

|
1

Excluding finance companies 3
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 Association of America estimates of principal amounts.
Total gross proceeds excluding offerings of sales and consumer finance
companies.
'




:

)

1

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

QUARTER
OR
MONTH

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
MEMO:
AND
BONDS
ISSUES INCLUDED
MFG.
PUBLICLY PRIVATELY PFD.
FOREIGN | CONVERTIBLE
STOCK
PLACED
OFFERED
1,262
1,282
914
1,385

2,138
2,190
1,659
2,576

1970 - I
II
III
IV e/

7,977
10,468 .
8,560
11,601

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

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

2,636
1,802
3,539
3,170
3,909
3,389
2,768
2,274
3,518
3,777
4,181
3,979

1,595
1,068
1,914
2,022
3,041
1,931
1,831
1,731
2,425
2,390
3,001
2,436

516
525
266
468
471 __ 1,154
447
701
468"
399
436
1,021
320
617
338
205
389
704
1,083
304
283
898
834
709

1971 - Jan. e/

2,750

2,000

300

1

450

222
135
83
226
61
33
128
, 89
V 20
26
68
11
4
56
11
159
n. a.

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

922
710
287
737

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

387
249
286
398
230
82
107
59
121
388
184
165

811
357
1,416
689
817
939
638
682
994
1,006
1,107
1,056

639
540
906
1,109
600
1,103
843
630
1,241
1,101
1,350
955

234
226
306
62
1,747
353
144
279
445
371
693
282

952
680
911
1,310
744
994
1,143
682
838
1,300
1,033
1,687

80

505

465

380

1,400

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.




OTHER
ISSUERS 1

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

AMOUNT
(MILLIONS
OF
DOLLARS)

February 1 thru February 19,1971

vOUL'ON
KATE OR

NET ItfLT.REBT COST

OITKRINC.
Y11'jLD

MOOMY'^
RATtNC

Corporates
30.0
1st. Mtg.
Texas Pwr. & Lt. Co.
1st. Mtg. bds 40.0
Pub. Serv. Co. of Colo.
100.0
Debs.
Unlroyal Inc.
40.0
1st. Mtg.
Pacific Pwr. & Lt. Co.
65.0
1st. Mtg.
Niagara Mohawk Pwr. Co.
60.0
Debs.
Penna. Pwr. & Lt. Co.
1st. Mtg.
36.0
Central Pwr. & Light Co.
American Tel. & Tel. Co.
Debs
500.0
Indiana & Mich. Elec. Co.
v
Cum pref istk 30.0
Indiana & Mich. Elec. Co.
1st Mtg.
30.0
Reliance Elec. Co.
30.0
Debs.
Cap notes
30.0
Union Bank
100.0
Notes
Commercial Credit Co.
35.0
1st Mtg.
Jersey Cent. Pwr. & Lt. Co.
100.0
U. S. Plywood-Champion Paper ] cS.F. debs .
50.0
Debs.
Dana Corp.
49.5
1st. Mtg.
Georgia Pwr. Co.
90.0
Debs.
Wisconsin Tel. Co.
49.5
1st. Mtg.
Houston Lt. 6c Pwr. Co.
25.0
Pref. Stk
Jersey Central Pwr. & Lt. Co.
Equip Tr Ctfs 18.0
Trailer Train Co.
State and Local
55.0
G.O.
Hawaii, State of
35.0
Rev.
Pittsburgh Stadium Auth., Pa.
25.0
G.O.
Virginia Public Sch. Auth.
36.8
G.O.
Puerto Rico's
50.0
G.O.
Louisiana, State of
100.0
G.O.
Port of N. Y. Auth.
51.8
Ge 0.
Minnesota
26.2
G.O.
Prince Georges Co., Md.
14.2
Bds.
Univ. of Louisville K. Y.
10.0
G.O.
St. Louis, Mo.




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
1977
2001
1996
1996
2001
2007
2001

< 6.50
7.20
7.35
6.88
8.13
8.00
7.30
7.88
7.25
7.25

6.35
7.20
7.35
7.08
8.00
8.05
7.30
7.29
7.15
7.15

A
A
-—

A
Baa
A
Aa
Aaa
Aaa
--

1972-86

7.88

5.50-6. 80

A

1974-1991
1972-2011
1972-1991
1973-96
1972-92
2006
1973-1991
1972-1996
1975-2003
1972-1991

4.63
6.48
4.53
6.32
4.79
6.08
4.40
4.74
5.71
4.56

3.00-5.,40
3.00-6.,00
2.40-5.,60
2.75-5.,75
2.40-5,.50
5.97
2.50-5,.00
2.60-5 .25
3.30-6.20
2.25-5 .00

A
Baa
Aa
A-l
A-l
--

Aa
A
A
Aa

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

i
ISSUER

State and Local

TYPE 2

2

3

MATURITY

COUPON
RATE OR
NET INTEREST COST

February 1 thru February 19,1971

OFFERING
YIELD

MOODY 1 S
RATING

fcontinued^

G.O.
California
Prince William Co, Va.
G.O.
Rev.
Los Angeles DWAP
G.O.
Anne Arundel Co., Md.
G10.
Yonkers >N. Y.
G.O.
Hartford, Conn.
G.O.
Alaska
Peabody, Mass.
G.O.
San Antonio, Tex.
Rev.
Monroe Co., N. Y.
G.O.
Vermont, State of
G.O.
Dallas-Ft. Worth Airport, Tex. Rev.
New York, State of
G.O.
Detroit, Mich.
\ Rev.
Tennessee
G.O.
Rev.
Calif. State Colleges
Los Angeles Co. Fid. Ctr. Dlst
Bds.
California
Rev.
Centennial Jt. Sch. Bd. Auth.
*
\

AMOUNT
(MILLIONS
OF
DOLLARS)

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
13.1

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
1973-2010

24.0
12.9

1972-01
1973-1999

5.52
4.69
5.47
4.93

4.29
5.76
4.26
6.00

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
3.00-6.00

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

4.69
6.13

2.25-5.20
3.50-5.90

Aa
Baa

4.77
5.07
—

4.65
-—
——

tUghts offering.
Includes corporate and other security offerings of $15 million and O v e r ;
State and local security offerings of $10 million and over.
^
In case of State and local government securities, G.Q. denotes general obligation;
!<ev.-Ut., revenue obligations secured only by income from public -utilities;
Rev,-Q.-lit., 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.




TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued)
As p f F e b r u a r y
19>

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
M . Lowenstein & Co.

Debs

Notes
Bankers Trust Co.
Bonds
Central Tel. & Util. Corp.
Bonds
Northern States Pwr Co.
Debs
Texas/Eastern Trans Corp.
Debs
Swift & Co.
Debs
U.Si Steel Corp.
South Carolina Elec & Gas. Co, Bonds
Debs
Walgreen Co.
Debs
Hart Schaffner & Marx
American Airlines Inc.
Ctfs
Gen'1 Tel. Co. Florida
1st mtg
Southern Natural Gas Co.
Debs
McCulloch Properties Credit
Debs
Corp.
Notes
Microdot Inc.
Bonds
Beneficial Corp
Beneficial Corp
Bonds
Occidental Petroleum Corp.
Conv debs
Monumental Corp
Notes
Alabama Gas Co.
1st mtg
Abbott Laboratories
Debs
Harsco Corp.
S.F. debs
Maine Yankee Atomic Pwr Co.
Bonds
Phillips Petroleum
Debs
*Fruehauf Finance Co.
Notes
*Fruehauf Finance Co.
Debs
Gen' 1 Elec. Co.
Debs
*North American Rockwell Corp. S.F, debs
Chemical New York Corp
Conv debs
Columbia Gas System Inc.
Debs
Duquesne Light Co.
1st mtg
Debs
Pacific Tel & Tel Co.
1st mtg
Seaboard Coast Line Railroad
Philadelphia Elec. Co.
Cum pref stk
Ralston Purina Co.
Debs
Bonds
Rochester Tel. Co.
1st mtg
Burlington Northern, Inc.
Bonds
Utah Pwr & Light Co.
Natural Gas^pipeline Co. of
America
Debs
Bonds
Virginia Elec & Pwr Co.
Bonds
Arkansas Pwr & Light Co.




50.0

February

22

75.0
20.0
50.0
50.0
50.0
150.0
35.0
30.0
35.0
32.0
45.0
50.0

February
February
February
February
February
February
February
February
February
February
February
February

22
22
23
23
23
23
24
24
25
25
25
25

30.0
20.0
50.0
25.0
100.0
20.0
16.0
60.0
30.0
50.0
200.0
25.0
25.0
200.0
100.0
50.0
75.0
35.0
200.0
50.0
50.0
50.0
30.0
60.0
35.0

February
February
February
February
February
February
February
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March

1
1
2
2
3
3
3
3
3
4
8
9
9
10
11
11
11
16

March
March
March

17
17
18

40.0
90.0
30.0

1 9 n

11

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
(continued)
'
.
As of
19,
AMOUNT
.
z
(MILLIONS
APPROXIMATE DATE
ISSUER
OF
OF OFFERING
TYPE
DOLLARS)
Corporate (cont'd)

American Can Co.
Georgia-Pacific Corp
Central Tel & Util Corp
Southern Natural Gas Co.
*American Metal Climax Inc.
*Pet Inc.
*Avco Financial Service Inc.
*Florida Gas transmission Co.
Leviting Furniture Corp
First Chicago Corp
Dayton Pwr & Light Co.
Dayton Pwr & Light Co.
American Metal Climax Inc.
American Metal Climax Inc.
Puerto Rico Telephone Co.
Louisiana R*r & Light
Evans Products Co.
Pacific & Foundry Co.
Ohio Power Company
New England Tel & Tel Co.




S.F. debs
Conv debs
1st mtg
Debs
Debs
Debs
Debs
1st mtg
Com stk
Debs
Pref stk
1st mtg
Notes
S.F. debs
Debs
1st mtg
Debs
Debs
1st mtg
Debs

75.0
125.0
20.0
50.0
100.0
35.0
50.0
18.0
32.1
150.0
20.0
45.0
, 50.0
50.0
35.0
25.0
50.0
15.0
40.0
200.0 .

March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
March
April
1
May
25

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
As of February 19, 1971
1
ISSUER

1
|

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State and Local
Los Angeles Harbor Dept. Calif.
New York St. Hsg. Finance Agcy.
!
Texas Wtr. Development Bd.
Texas, State of
j
Ohio, State of
San Bernardino, Calif. Redevp.
Agency
West Va., State of
Md., State of
New York State Dorm. Auth.
Roanoke, Va.
Milwaukee
*Atlanta, Ga.
*Hempstead, N. Y.
Birmingham Wtr. Works Bd., Ala.
Dallas, City of
Broward Co. S/D, Fla.
San Antonio, Tex.
Washington St. Bd. Comm. Coll. E a.
-Suffolk Co., N. Y.
*Clarkstown, N. Y.
*South Carolina, State of
Buffalo, N. Y.
Cincinnati, Ohio
Henderson, Ky.
Baltimore, Md.
Newark, N . J .
1
Santa Clara Co., Calif Bldg. Auth.
Greensboro, N. C.

*
1
2

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

16.0
103.8
25.0
25.0
75.0
13.5
45.0
56.3
29.5
10.1
12.8
23.5
17.9
11.0
27.0
18.6
13.0
21.0
16.6
12.7
38.7
22.1
16.1
76.0
35.2
18.8
17.0
11.0

x

Feb.
Feb.
Feb.
Feb.
Feb.

24
24
24
25
25

Feb.
Feb.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Mar.
Apr.
Apr.

2
2
2
2
2
2
3
3
3
4
4
4
9
9
9
10
10
16
16
21
6

Included in table for first time.
Includes corporate and other, issues of $15 million and over; State and local
Government issues of S10 million and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal Agencies.




Table 8

13

STOCK PRICES AND VOLUME
STOCK PRICES1-

TRADING VOLUME 2 '

DATE
NYSE INDEX 3 -

D J . INDUSTRIALS

AMEX 4 -

NYSE

AMEX

1968 - High
Low

61.27(11/2)
48.66(3/5)

985.21(12/13)
825.13(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 - H i g h
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)

1971 - Jan.

29

52.64

868.50

24.32

20.2

5.3

Feb.

5
12
19

53.36
54.16
53.20

876.57
888.83
878.56

24.87
25.37
25.03

21.1
22.1
18.6

6.9
6.7
6.2

NOTES:
1.

Figures other than highs and lows are Fridays only.
Highs and lows are for the year and are nor - necessarily for Fridays.

2.

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
In recent years, however abbreviated trading to the extent, and over the time
Hours/
Days/
From
Through:
Day
Week
January 3, 1969
July 7, 1969
January 2, 1970

July 3, 1969
December 31, 1969 .
May 1, 1970

3.

12/31/65 - 50

4.

Average dollar value of shares listed.




4
4-1/2
5

5
5
5

,

27-1/2 hours per week.
periods, shown below:
Hours/
Week
20
22-1/2
25

14

TABLE 9: Security Credit

END OF PERIOD

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

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

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

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

4,010
4,030

2,286

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

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

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
MONEY 2

Not Seasonally Adjusted
1968
19#/
1969 - Nov.
Dec.
1970 - Jan.
1970 - Nov. ,
Dec X
1971 - J a n . '

4,203
2,549
4,466

7.0
4.0
6.7

257
571
-114
497
1,167
750

——
——
-

1,143
-763
936

7,432
4,019
11,083

6.0
3.1
8.2

2,738
-1,003
5,288

11,635
6,568
15,549

6.3
3.4
7.7

3,881
-1,766
6,224

179
-237
-240

226
1,069
-1,371

__

207
-387
-1,418

483
1,640
-1,485

—*

386
-624
-1,658

388
376
n. a.

1,098
2,730
2,460

——

1,044
1,154
n.a.

1,595
3,897
3,210

——

—m

—
__
—

1,432
1,530
H# 3*

"

Seasonally Adjusted
1970 - Aug.
Sept,
Oct.
Nov.
Dep.
1971 - J a n J
1
2
3

268
437
444
531
822
791

4.7
7.6
7.7
9.1
14.1
13.4

—
—
--—
—

785
1,393
1,399
1,092
1,755
3,256

6.8
11.9
11.9
9.2
14.6
26.8

__
-- . ,
——
———
.

1,053
1,830
1,843
1,623
2,577
4,047

6.1
10.5
10.5
9.2
14.4
22.4

**

— mm
—

Annual growth rate tor 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&L:
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 Hanks and Federal Home Loan Bank Board.




——

TABLE 11: Mortgage Commitments at Selected Thrift Institutions
. /

DATE

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

TOTAL

1

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

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

8.4

5.8

2.6

-.25

-.12

-.13

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

.04
-.07
-.05
-.13
-.14
-.09
-.04
-.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.




17
TABLE 12: Net Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
FNMA-GNMA

TOTAL

FINANCIAL INSTITUTIONS
LIFE
MUTUAL
[SAVINGS &)
SAVINGS
COMMERCIAL
LOAN
1 INSURANCE
BANKS
BANKS ] ASSOC.
j COMPANIES

FXMA-GNMA

Not Seasonally Adiusted
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

2,323
1,797
2,508:
4,375

1969 - Nov.
- Dec.

1,636
2,120

1,042
1,475

300
200

151
325

450
533

141
417

594
645.

1970 - Jan.

1,041

437

50

38

136

127
n.a.
n.a.

1966
1967
1968
1969

1970 - Nov.
- Dec.
1971 - Jan.

1970 - Jan.
Feb.
Mar.
Apr.
MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec.
1971 - Jan.
1

rl,933
n.a.

300
200

183
254

1,322
1,664

n.a.

100

n.a.

n.a.

1,469
1,542
1,330
1,351
1,485
1,749
2,083
1,817
2,091
2,074
r2,187
n.a.

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

# cle

n.a.

283

r2,185
n.a.
n.a. „

Seasonally Adlusted
452
25
482
143
322
186
385
188
631
155
201
777
142
1,055
983
175
245
1,103
1,189
170
1,427
176
1,702
208
n.a.

213

211
220
161
195
199
222
213
83
151
200
131

604
r253
148

550
498
521
507
435
468
508*
408
364
320
r229100

n.a.

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 bv 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 1969.




18

TABLE 13: Net Increases in Mortgage Debt Outstanding

1

Billions of dollars, SAAR QUARTER
i

TOTAL

RESIDENTIAL 3

1- to 4FAMILY

MULTIFAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

FARM

1966 - II
IV

18.6
15.1

10.9
9.1

8.3
7.0

2.6
2.1

5.5
4.1

8.2
6.0

2.2
1.8

j

1967 - I

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

1.8
1-8
2.5

S
|
;

2.,

J

1968 - I
15
~ III.
IV-

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
i.8

*
'
%
;

1969 - I p
IIp
IIIp
IV p

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

T

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

T Z

III
IV

1970 - I p
I5>
IIIp
IV p

;
'

1.8#
1.4 j|

-

l Derived from data on mortgage debt outstanding from Federal Deposit Insurance f
Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, NaI
tional Association of Mutual Savings Banks, Departments of Commerce and Agri- I
culture, Federal National Mortgage Association, Federal Housing Administration,?
Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations
and extrapolations, where required, estimated mainly by Federal Reserve.
2 May differ somewhat from related flow of funds series mainly because of more
aggregative type of seasonal adjustment.
3 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and mul-tifamily mortgage debt combined.




TABLE 14: FNMA Weekly " A u c t i o n " Results
IMPLICIT YIELD 2 (per cent)
COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEAR 1
1 -YEARN
9090TOTAL
TOTAL
66& OVER
MONTH & OVER
OFFERED
DAY
DAY
MONTH
;;

WEKK
ENDED
1970 - Oct.

5
19

267.5
352.5

149.8
149.7

62.2
53.2

73.1
88.1

14.5
8.4

8.90
8.89

8.92
8.90

8.97
8.95

Nov.

2
16

341.5
222.4

181.2 100.1
170.3 75.8

62.4
79.4

18.7
15.1

8.90
8.89

8.93
8.90

8.93
8.92

Dec.

7
14
28

166.5
165.5
60.6

127.8
124.7
48.1

54.7
42.1
17.2

60.9
72.1
28.9

12.2
- 10.5
3.0

8.56
8.51
8.41

8.54
8.43
8.36

8.57
8.47
8.40

1971 - Jan.

25

44.6

35.5

9.9

25.6

7.83

7.96

Feb.

8

23.4

23.3

10.6

12.7

7.67

7.67

—

—

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

\ 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
1 r> years for '30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 38 basis points fee paid by investors
to servicers. Prior to August 10, 1970 the servicing fee was 50 basis points.




20
TABLE 15: Private Housing Starts and Permits

!
DATE

SEASONALLY ADJUSTED
ANNUAL RATE
,
TOTAL 1-FAMILY 2 OR MOREj

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

1,059
1,306
11,392
'1,224
; 1,242
1,393
! 1,603
1,425
1,509
j1,583
1,693
|2,028

1971 - Jan. £ /

11,701

577
725
708
697
728
835
827
838
881
890
934
1,228

482
581
684
527
514
558
776
587
627
693
759
800

931

770

1
|
i

|

STARTS

TOTAL

UNADJUSTED
TYPE OF FINANCING
FHA 1 VA
OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

66.4
74.3
114.7
128.4
125.0
135.2
140.8
128.7
130.9
140.9
126.9
119.9

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
51.0

1,013
1,137
1,099
1,263
1,321
1,306
1,275
1,326
1,371
1,521
1,487
1,768

109.1

n.a.

n.a.

1,595

4.6

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 unit^finaneed 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.




21

TABLE 16: Mortgage and Bond Yields
FHA
.
MORTGAGES 2 DATE
30-YEAR

CONVENTIONAL
MORTGAGES
3

1

NEW
SPREAD BE- [
TWEEN YIELDS Aaa CORPORATE
ON CONV. &
BONDS
FHA MORT4
GAGES

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

1967 - High
- Low
1968 - High
Low
1969 - High
Low

6.81
6.29
7.52
6.78
8.62
7.99

6.70
6.40
7.40
6.75
8.35
7.55

.11
-.12
.02
-.27
-.13
-.40

6.51
5.18
6.79
6.15
8.75
6.91

1970 - High
Low

9.29
8.40

8.60
8.30

--.10
-.74

9.11
7.80

.99
.01

1970 - Sept.
Oct.
Nov.
Dec.

9.01
8.97
8.90
8.40

8.50
8.50
8.45
8.30

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

8.42
8.63
8.34
7.80

.59
.34
.56
.60

1971 - Jan.
1

2

3

4

7.95

*

1.28
.27
1.20
.26
1.08
-.13

7.24

Neither mortgage nor bond yields include allowance for servicing costs which are .
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. Data shown
are for 30-year mortgages with minimum downpayments, and weighted by probablb
volume of transactions. Yields computed by FHA, assuming prepayment period
of 15 years for 30-year mortgages. Dashed lines indicate periods of adjust-:
ment to changes in contractual interest rates.

Based on FHA-field-office opinion on typical interest rates (rounded) on con
ventional first mortgages prevailing in the market areas of insuring officecities. 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.




22

TABLE 17: Conventional Mortgage Terms
NEW HOMES
CON- FEES &
i
I LOAN/
TRACT CHARGES EFFEC-I MATURITY I PRICE
TIVE i (YEARS) 1 RATIO
(PER
RATE
| (PER
CENT) RATE |
(PER
3 / '
CENT)
CENT)
2

LOAN
AMT.

($000)
4

1

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

LOAN
AMT.

($000)

1969
1.06

8.25

25.4

71.9

25.0

8.08

0.93

8.24

22.9

8.16

1.08
1.09

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

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

8.13
8.23

0.94

8.23
8.29
8.23

1.02

8.29
8.41
8.43
8.35
8.34
8.36
8.37
8.41
8.42
8.35
8.32

22.4
22.4

Dec.

70.6

20.

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

8.28
8.31
8.32
8.35
8.31
8.33

8.26
8.20

1.11
1.02
0.98
0.99

1.01

0.98
1.03
1.05
0.99
1.07

25.2

25.1
25.3
25.9

25.2

25.7

8.26
8.20
8.18
8.19

8.21
8.25
8.27

8.20
8.18
8.12

0.98
0.90
0.94
0.98
0.95
0.89

0.88
0.88
0.85
0.84

8.26

70.3
70.2
22.6
70.4
22.8
70.4
22.8
70.3
23.0
71.5
71.5
• 71.7
22.8
71.7
22.8
71.5
22.8
71.5
23.3
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 i

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 addled income to the
lender and-are paid by the borrower. They exclude any closing costs related solely to
transfer of property ownership.
Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.
Derived by FRB.