Full text of H.16 Capital Market Developments : April 12, 1971

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DECONTROLLED AFTER SIX MONTHS

L.5.8 CooWeniial (F.R.)

April 12, 1971

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O^idati fi\oXfct V
—

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CAPITAL
MARKET
DEVELOPMENTS

X

C a p i t a l Markets Section, D i v i s i o n of Research and S t a t i s t i c s ,
B o a r d of G o v e r n o r s of t h e F e d e r a l R e s e r v e S y s t e m , W a s h i n g t o n , D. C .




S ~ - %'

'

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
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

WEEK ENDING:

1971 - Mar.

Apr.

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

5
12
19
26

7.79
7.54
7.14
7.08

7.12
7.20
7.26
7.25

930
976
936
1,013

90
94
96
97

2
9
16

7.15
7.16

7.22
7.23

608
310e
: 525e

67
79e

WEEK ENDING:

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

1971 - Mar.

5
12
19
26

5.15
4.95
4.90
5.00

Apr.

2
9
16

5.00
5.10

.

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

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

5.37
5.28
5.00
5.03

375^
596
485
407

62
89
84
69

1,127
948
737
958

5.15
5.21

314
549
481

69
61

1,164
1,136

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:

Sec footnotes to Table 3




•

\
TABLE 2: Details on Inventories
DATE
OFFERED

\
\

AMOUNT
(MIL. $)

4/7
4/5
4/1
4/1
4/1
3/30
3/30
3/17
3/17

OFFERED

60.0
35.0
25.0
40.0
50.0
125.0
60.0
50.0
50.0

DATE
I RELEXSED

2/17
3/23
3/23
3/31

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

4/5
4/6
4/6
4/6

Apr.

7.21
7.40
8.50
6.25
7.70
7.20
7.55
7.30
8.30

25
40
90
60
80
60
85
.90
90

5 yrs.
5 yrs.
5 yrs.
5 yrs.
5 yrs.
5 yrs.
10 yrs.
10 yrs.
10 yrs.

Aaa
Aa
A
--

Aaa
A
Baa
Baa

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

AMOUNT
50.0
250.0
75.0
100.0

Dana Corp
Std Oil of Calif.
Pennzoil United
R. J. Reynolds

7.30
7.00
8-3/8
7-3/8

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
1971 - Mar.

7-1/4
7-1/2
8-1/2
6-1/2
7.70
7-1/4
7-1/2
7.30
8.30

Baltimore G & E
Cent. 111. P. S.
Mack Fin.
Ohio Pwr.
So. Nat. Gas
N. J, Bell Tel.
Dart Ind.
No. Amer. Rockwell
No. Amer. Rockwell

-

ESTIMATED PROPORTION SOLD

12
19
26
2
9

N.C. - No call protection.

767
773
840
879
887

160
112
186
230
360

1

7.30
7.00
8.35
7.40

+45
+15
+27
+12

A
Aaa
Baa
A

10
10
10
10

yrs3
yrs
yrs
yrs

30%
10%
30%
10%

CORPORATES
IN SYNDICATE
75
90
87
167
164

Digitized
1 for FRASER
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
MUNICIPALS4

1968 - High
Low

7.02
6.13

(12/13)
(8/30)

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

5.90
5.18

(1/20)
(8/9)

4.85
4.07

(1/26)
(8/8)

1969— High
Low

8.85
6.90

(12/5)
(2/21)

7.84
6.55

(2/26)
(1/12)

6.97
5.96

(12/26)
(1/24)

6.90
4.82

(12/18)
(1/28)

1970 - High
Low

9.30
7.68

(6/19)
(12/18)

8.60
7.48

(7/3)
(12/31)

7.55
6.17

(5/29)
(12/18)

7.12
5.33

(5/29)
(12/11)

1971 - Mar.
Apr.

19
26
2
9

7.14
7.08
7.15
7.16

7.26
7.25
7.22
7.23

5.87
5.73
5.84
5.87

5.00
5.03
5.15
5.21

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.
A
Thursday figures. %he 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
STATE AND LOCAL 2

CORPORATE1

PERIOD

1971

1970

1969

2,684
l,800e

1,340
1,214
1,555

1,262
987
538

2,748
2,076
2,530

1,647
996
1,085

1,801
1,110
737

2,768
2,274
3,518

2,478
1,427
2,427

1,348
1,359
1,758

1,097
808
559

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

4,109
3,728
4,465
5,862

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

18,445
27,005
38,944

13,572
19,904
26,744

7,837
12,302
18,164

6,435
8,899
11,881

1970

1969

2,636
1,802
3,539

2,075
2,045
2,098

April
May
June

3,170
3,909
3,389

July
August
September
October
November
December

1971
January
February
March

1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

ilUL
5,850e

11,967

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

Quarter
Quarter
Quarter
Quarter

!

1

|

6,170
7,037

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
i

3

Year
1
2
3

j
f
$

\

5
\

i

TABLE 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)
GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
MEMO:
AND
BONDS
ISSUES INCLUDED
MFG.
PUBLICLY PRIVATELY PFD.
STOCK FOREIGN | CONVERTIBLE
PLACED
OFFERED

QUARTER
OR
MONTH

TOTAL

1970 - II
III
IV e/
1971 - I £7

10,468
8,560.
11.937
11,967

6,994
5,987
7,827
8,381

1,282
914
1,421
1,296

2,190
1.659
2,690
2,289

135
83
226
n. a.

710
287
737
801

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

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

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

*71
447
399
436
320
205
389
304
283
834

1,154
701
468
1,021
617
338
704
1,083
898
709

128
89
20
26
68
11
4
56
11
159

3,017
1971 - Jan.
Feb. e/ 3.100
Mar. £/ 5,850

2,031
2,200
4,150

496
300
500

489
600
1,200

52
n.a.
n. a.

GROSS PROCEEDS BY
TYPE OF ISSUER
PUBLIC
UTILITY

COMMUNICATIONS

2,445
2,314
3,169
3,971

2,812
2,714
3,406
2,718

2,162
868
1,346
1,612

286
398
230
82
107
59
121
388
184
165

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

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

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

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

101
150
550

716

623
1,110
985

392
620
600

1,286

785
2,470

OTHER
ISSUERS1

3,048
2,663
4,020
3,666

!

1

Other issuers arc extractive, railroad and other transportation, real estate
and finance, and commercial and other.
Source: Securities and Exchange Commission. Quarterly supplements are avail
able.




585
1,795

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

ISSUER

TYPE 2

AMOUNT '
(MILLIONS
OF
DOLLARS)

Conv debs
Cap stk
1st mtg
1st mtg
1st mtg
Debs
Debs
Notes

15.0
67.0
35.0
25.0
60.0
100.0
25.0
30.0

MATURITY

8

April 5 .
A aril 9. 1971
COUPON
RATE OR
OFFER- MOODY'S
RATING
NET INTERING
EST COST
YIELD

Corporate
Midland Mtge
Pan American World Airway, Inc.
Central Illinois Pub Serv Corp
Louisian Pwr & Light
Baltimore G & E
W. T. Grant Co.
Colorado Interstate Corp
Brown Shoe Co.




7.00
2001
2001
2001
1996
1991
1978

7.50
7.00
7.14
4.75
8.50
6.50

7.40
7.70
7.21
4.75
8.50
6.55

Aa
A
Aaa
Baa
Baa
A

T A B L E 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury)'

April 5, thru April 9, 1971
AMOUNT
CMILLIONS
ISSUER

TYPE 2

OF
DOLLARS)

MATURITY

COUPON
1
1
R A T E OR
N E T INTER- d
EST C O S T
|

iMTKRi;.c

MOODY'S
RATING

VILLI)

State and Local
New York State
Oregon, State of
Oregon, State of
Howard Co., Maryland
Howard Co., Maryland
Greensboro, N. C.
Minn, Minn.
Minn., Minn.
Memphis, Tenn.
Ohio, State of
Ohio, State of
Kansas City, Mo.
Austin, Texas
Mass., State of
Norristown Area Sch Auth, Pa.

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.
G.O.
Rev.

18.0
2.5
45.0
5.8
4.9
11.0
5.1
6.0
21.0
25.0
50.0
27.5
25.0
125.2
17.9

1972-2021
1974-2001
1974-1991
1973-2001
1972-1991
1972-1993
1972-1991
1972-1981
1972-1996
1972-1989
1972-1996
1974-2000

Bonds

300.0

1974

—

1972-2020
1972-1996

5.21
4.95
4.49
5.05
4.78
4.41
4.37
3.57
4.55
4.35
5.10
8.02
4.07

2.30-5. 25
2.80-5.30
2.80-5. 10
3.75-5. 50
2.50-5.40
2.30-5.,10
2.25-4.,90
2.40-4.00
2.30-5.,15
2.30-4.,85
2.50-5,,40
4.75-7.,25
3.50-4..50

Aa
Aa
Aa
A
A
Aa
Aaa
Aaa
Aa
Aa
Aa
——

—— ,
• —

Other
Federal Land Bank

5.30

5.30

• —

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 genera I.'ob li gat i on ;
'< e v. - U t., revenue obligations secured only by income from public utilities;
Rev.-Q.-lit. , revenue bonds secured only by income from.quasi-utiliti.es; Kev.-K.T.,
revenue bonds secured by revenue from specific taxes only; Kev.-Kent., 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)

ISSUER

TYPE

Corp orates
Atlantic City Elec. Co.
1st. Mtg.
American Fletcher Corp.
Debs.
Fedders Corp.
Conv. debs.
Gulf Resources & Chem. Corp. Debs.
Kennecott Copper Corp.
Debs.
Avco Financial Serv. Inc.
Debs.
Fidelity Bank
Debs.
Texas Electric Service Co.
1st. Mtg.
Gen' 1 Tel. Co. of Ohio
1st. Mtg.
American yanamid Co.
Debs.
Montana Power Co.
Bds.
Burlington Northern, Inc.
1st. Mtg.
Republic Nat *1 Bk. of Dallas Prom. Notes
Michigan Wisconsin Pipeline
Bds.
Union Elec. Co.
Bds.
Washington, Wtr. & Pwr. Co.
Debs.
Illinois Bell Tel. Co.
Bds.
Jersey Central Pwr. & Lt. Co. Debs.
El Pasco Elec. Co.
1st. Mtg.
Minnesota Pwr. & Lt.
1st. Mtg.
*Potomac Edison Co.
1st. Mtg.
Debs.
• G.M. A. C.
Northern Indiana Pub. Serv.
Co.
1st. Mtg.
Texas Gas Transmission Corp. Debs.
Hartford National Corp.
Debs.
Lord Abbett-Bd.-Deb. Fund Inc.Debs
Kentucky Utilities Co.
Equity Sec.
Kentucky Utilities Co.
1st. Mtg.
National Homes Corp.
Conv. debs.
Armstrong Rubber Co.
Debs.
Indiana Bell Tel. Co.
]Debs.
Alabama Gas Co.
1st. Mtg.
Monumental Corp.
]Notes
Occidental Petroleum Corp.
(Conv. debs.
Beneficial Corp.
]Bds.
Beneficial Corp
Iids.
Microdot Inc.
IVotes
Central Tel. & Utility Corp. 1st. Mtg.
Gen'1 Tel. Co. of the S.W.
Iids.
Owens-111. Inc.
I)ebs. ""
Dayton Pwr. & Lt. Co.
I>ref. Stk.
Dayton Pwr. & Lt. Co.
1Lst. Mtg.
Levitz Furniture Corp.
Clom. Stk.
McGraw-Edison Co.
£i.F. debs.




AMOUNT
(MILLIONS
OF
DOLLARS)
27.0
25.0
, 50.0
20.0
200.0
50.0
30.6
25.0
20.0
100.0
25.0
60.0
35.0
40.0
50.0
15.0
200.0
21.0
16.0
23.0
20.0
100.0
50.0
30.0
25.0
120.0
15.0
35.0
25.0
25.0
100.0
16.0
20.0
100.0
25.0
50.0
20.0
20.0
40.0
100.0
20.0
45.0
32.1
50.0

APPROXIMATE DATE
OF OFFERING

April 12
April 12
April 12
April 12
April 12
April 12
April 12
April 13
April 14
April 14
April 14
April 15
April 15
April 15
April 15
April 15
April 20
April 20
April 21
April 22
April 27
April 28

„

1

April
April
April
April
April
April
April
April
April
April
April
April
April
April
April
April
April
April
April
April
April
May

28

.

•

1

1
TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
(continued)
qf April ?. 1971
AMOUNT
APPROXIMATE DATE
(MILLIONS
ISSUER
TYPE
OF
OF OFFERING
DOLLARS)
Corporates (continued)
New England Tel. & Tel. Co.
Lucky Stores Inc.
Union Tank Car Co.
Western Elec. Co.




Debs.
Debs.
Equip. Trst.
Ctfs.
Debs.

200.0
25.0

May
May

25.0
100.0

May
June

25

8

JABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
.
As of April 9, 1971
AMOUNT
(MILLIONS
APPROXIMATE DATE
ISSUER
TYPE
OF
OF OFFERING
DOLLARS)
I
State and Local
New York State Dorm. Auth.
Los Angeles Co. Flood Con. Dist.
Port of N. Y. Auth.
Islip Cen. Sch. Dist. #7, N.Y.
Penna, St. Pub. Sch. Bldg. Auth.
Nassau Co., N. Y.
Austin ISD, Texas
Washington State
Louisiana Stadium and Exp. Dist.
Santa Clara Co., Calif. Bldg.
Auth.
Santa Clara Co., Calif.
•California, State of
'Conn. Health & Ed. Fac. Auth.
Dade Co. Port Auth., Fla.
Wayne, Township, N. J. S/D
Los Angeles Dept. of Wtr. & Pwr.
Philadelphia, pa.
San Bernardino, Calif. Redevp.
Agency
Cleveland City Sch. Dist.
West Virginia, State of
Sacramento, Calif Municipal
Utility Dist.
Texas, State of
Illinois
Fairfax Co., Va.
New Orleans
Austin, Texas
Allegheny. Co. . Pa.
Oakland Co.^ Mich.
Other
Province of Ontario
*
1
2

: Rev.
|G.O.
(St Gtd.)
G.O.
Rev.
G.O.
G.O.
Rev.
Rev.

15.4
. 10.0
23.5
11.6
36.0
48.0
18.5
72.5
113.0

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

17.0
17.0
100.0
12.3 .
10.8
10.5
39.0
48.6

Bds.
G.O.
G.O.

13.5
16.0
45.0

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

40.0
30.0
100.0
30.0
19.8
13.0
29.7
13.3

'G • 0 •
1 Debs.

—;

IOO.O

April
April
April
April
April
April
April
April
April

13
13
13
13
20
20
20
21
21

April
April
April
April
April
April
April
April

21
21
21
21
22
22
28
28

April
April
April
May
May
May
May
May
May
July

5
17
17
19
19
20
1

April
May

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.




13

Table 8

STOCK PRICES AND VOLUME
STOCK PRICES1'

TRADING VOLUME 2 '

DATE
NYSE INDEX 3 -

DJ. INDUSTRIALS

AMEX *

NYSE

AMEX

- High
Low

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

985.21(12/13)
825.13(3/21)

33.24(12/20] 17.1(7/12)
21.97(3/25)
8.3(3/29)

9.3(1/19)
2.9(3/29)

- 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]

- 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)

16.5
18.3
18.3
15.6

5.6
6.4
6.1
4.7

14.9
19.0

5.0
5.6

- Mar.

5
12
19
26

54.47
54.83
55.69
55.19

898.00
898.34
912.92
903.48

25.71
25.88
. 26.14
26.04

Apr.

2
9

55.58
56.33

903.04
920.39

26.20
26.41

.

NOTES:
1.

Figures other than highs and lows are Fridays only.
Highs and lows are for the year and are not 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, 19*9
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

^

u
TABLE 9: Security Credit

END OF PERIOD

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
BROKERS1 I BANKS2 I TOTAL

CUSTOMERS 1
NET DEBIT
BALANCES

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

Outstanding;
1971 • Feb.
Mar.
Apr.
May
June
July
Aug.
Sep to
Oct.
Nov.
Dec.
Jan.
Feb.

4,570
4,520
4,360
4,160
4,150
3,800
3,810
3,920
4,010
4,010
4,030

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

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

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

4,000
4,090

2,300
2,330

6,300
6,420

(4)
(4)

-110
- 50
-160
200

- 40

-170
- 50

-121
-209
-368
-552
-152

2,563
2,441
2,248
2,222
2,009
(5)2,180
2,083
2,236
2,163
2,197
2,286
2,452
2,743

4,099
3.912
3,724
3,211
3,272
(4)

it!

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

Change in
Outstanding;
1971 • Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.

40
40

- 10

-350
110
90
2
18

10
30
60
50
10

- 30
90

30
30

- 10

-200

240
-300
- 60
- 20

140
30
52
28
- 60

120

-163
- 22

-193
- 26
-213
171
97
153
- 73
34
89

42
-187
-188
-513
- 61

166
294.

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

SAVINGS & LOAN ASSOCIATIONS
MUTUAL SAVINGS BANKS
NET
REGULAR DEPOSITS 3
NET
SHARE CAPITAL
NEW
NEW
ANNUAL
ANNUAL
MONEY2
GROWTH
NET
MONEY2
GROWTH
NET
FLOW
FLOW
RATE 1
RATE 1

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE 1
FLOW

NET
NEW
MONEY 2

Not Seasonally Adjusted
1968
1969
1970

4,203
2,549
4,466

7.0
4.0
6.7

1969 - Dec.
1970 - Jan.
Feb.
1970 - Dec. ,
1971 - J a n . %
Feb.E./

571
-114
246
1,167
798
900

__

1970 - Sept.
Oct.
Nov.
Dec. ,
1971 - Jan.
Feb. E

1
2
3

\

426
437
540
796
885
939

——

7.4
7.6
9.3
13.6
15.0
15,7

1,143
-763
936
-237
-240
160
376
631
800
-—

. --- '

.

7,432
4,200
11,173

2,738
-1,003
5,295

11,635
6,749
15,639

1,085
-387
——
-1,417
-1,418
—
205
177
——
2,816
1,161
2,476
2,554
2,342
2,445
Seasonally Adjusted

1,656
-1,531
451
3,983
3,352
3,345

1,321
1,415
1,130
1,740
3,619
2,473

6.0
3.2
8.2

11.3
12.0
9.5
14.5
29.8
19.9

---

---

•

1,747
1,852
1,670
2,536
4,504
3 ,412

6.3
3.4
7.7

3,881
-1,766
6,231

--

-624
-1,658
337
1,537
3,107 ;
3,142

——
—
-—— •

10.0
10.6
9.4
14.2
24.9
18.5

--

—
---

Annual growth rate for monthly, data is the annualized monthly percentage increase in deposits.
Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
insured associations only, which represent 967, of industry total resources.
Regular deposits at mutual savings banks exclude items such as Christmas club and.certainescrow accounts, which represent a very small part of total deposits.
SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Hank Hoard.
NOTE: Data shown above reflect revised seasonal adjustments. • S&L data (unadjusted) have been
revised from benchmarks.




\
TABLE 11:' Mortgage Commitments at Selected Thrift Institutions

)
DATE

970 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1971 - Jan.
Feb.

TOTAL

OUTSTANDING COMMITMENTS
ALL
MUTUAL
SAVINGS
SAVINGS &
BANKS
LOAN
(N.Y.
STATE)
ASSOCIATIONS

NET CHANGE
ALL
SAVINGS &
LOAN

I

1
TOTAL

8.2
7.9
7.6
7.8
8.0
8.2
8.6

ASSOCIATIONS
(Billions of Dollars, St asonally Adjusted) 1/
5.6
2.6
-.16
-.18
2.5
5.4
-.27
-.20
5.2 ^
2.5
-.31
-.24
5.4
\
2.4
-.08
.21
2.2
.34
5.8
^
.20
2.1
.26
6.1
.17
2.0
6.5
.37
.41

9.8
8.9
9.3
9.6
10.1

6.8
7.1
7.5
7.8
8.1

2.0
1-8
1.8
1.8
2.0

10.4
11.2

8.3
8.9

2; 1
2.3

,

.21
.25
.30
.35
.51
.25
.80

-

16
MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

.29
.36
.37
.34
.28
.20
.60

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.




-.02
-.07
-.07
-.13
-.14
-.09
-.04
-.08
-.11
-.07
.01
.23
. 05
.20

17
TABLE 12: Net Change in Mortgage Holdings 1

DATE

TOTAL
INCLUDING
.FNMA-GNMA

TOTAL

FINANCIAL INSTITUTIONS
LIFE
MUTUAL
SAVINGS &|
INSURANCE . F.;MA-GN>LA
SAVINGS
LOAN
COMPANIES
BANKS
ASSOC. |

COMMERCIAL
BANKS

! , •

Not Seasonally Adlusted
1966
1967
1968
1969

j 1970 - Jan.

- Feb.

i

18,105
20,016
23,781
24,051

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

1,041
1,099

437
566

1970 - Dec.

2,811 r

1971 - Jan.
Feb.

n.a.
n.a.

2,663 r

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

136
223

213
187

604
533

495

148

50
50

38
106

200

302 r

1,666

100
300

239 r
180

941 r
1,135

n.a.
n.a.

220
161
195
199
222
213 83
151
200
131
232

Seasonally Adlusted
1970 - Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
t
Oct.
1
Nov.
i
Dec.
r 971

1
1

f
I
:

1,542
1,330
1,351
1,485
1,749
2,083
1,817
2,091
2,074
2,187
2, 604

1,044
809
844
1,050
1,281
1,575
1,409
1,727
1,754
1,958
2,504?

- Jan.
Feb.

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

143
186
188
155
201
142
175
245
170
176
256

482
322
385
631
777
1,055
983
1,103
1,189
1,427
1,704

283
445

225 r
217

1,261
1,398

n.a.
n.a.

498
521 —
507
435
468
508
408
364
320
229
100
n.a.
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 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.

i



18
TABLE 13: Net Increases in Mortgage Debt Outstanding
Billions of dollars, SAAR QUARTER

TOTAL

RESIDENTIAL3

1 - to 4FAMILY

MULTIFAMILY

COMMERCIAL

1

MULTI-AND
COMMERCIAL

FARM

5.5
4.1

8.2
6.0

2.2
1.8

7.3
8.4
8.8
8.4 •

1.8
1.8
2.5
2.8

1966 - I I
IV

18.6
15.1

10.9
9.1

8.3
7.0

2.6
2.1

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

1968 - I
13
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
1.8

j
|

1969 - I p
IIP
IIIp
IV p

31.3
28.9
26.5
25.1

25.0
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

I
1
|
|

1970 - I p
ii>
IIIp
IVe

20.3
23.4
27.0
29.5

13.8
16.9
21,0
22.5

8.8
11.5
15.0
16.6

5.0
5.4
6.1
5.9

5.0
5.0
4.2
4.7

9.8
9.8
10.2
10.7

1.5
1.5
1.7
2.2

|
1
I
|
1
1

1 Derived from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Board, Institute bf 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 interpolations
and extrapolations, where required, estimated mainly by Federal Reserve.
2 May differ somewhat from related flow of funds serie? 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 multifamily mortgage debt combined.




19

TABLE 14: FNMA Weekly ''Auction" Results
2

WEEK
ENDED

IMPLICIT YIELD (per cent)
COMMITMENTS IN $ MILLIONS
ACCEPTED
1-YEAR 1
1-YEAR"
906906TOTAL
TOTAL
& OVER
MONTH & OVER
DAY
/ MONTH
DAY
OFFERED

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

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

Mar.

1
15
29

186.0
193.5
122.5

51.8
74.0
66.9

15.2
17.9
36.7

29.3
41.2
26.3

, 7.43
7.33
7.32

7.43
7.45
7.45

7.3
14.9
3.9

—

7.56
7.55
7.55

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 onljy
after completion and occupancy.
I
1

For "proposed construction" of new homes only.

2

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. 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
STARTS
DATE

SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

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

1,059
1,306
1,392
1,224
1,242
1,393
1,603
1,425
1,509
1,583
1,693
2,054

• Jan. 2/
Feb.2/

1,709
1,715

1

2

TOTAL

UNADJUSTED
TYPE OF FINANCING
FHA VA
OTHER

BUILDING *
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2

577
725
708
697
728
835
827
838
881
890
934
1,240

482
581
684
527
514
558
776
587
627
693
759
814

66.4
74.3
114.7
128.4
125.0
135.2
140.8
128.7
130.9
140.9
126.9
121.4

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
52.5

1,050
1,119
1,085
1,177
1,309
1,285
1,309
1,378
1,388
1,523
1,487
1,768

937
975

772
740

109.7
99.6

32.3 4.6
27.3 4.7

72.8
67.6

1,635
1,622

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
j
VA starts are not strictly comparable in concept or timing; other starts inj
elude both units financed by conventional mortgages and^units without mortgages, j
Building permits before January 1963 are Census estimates" for about 10,000 areas I
identified as having a local building permit system in 1959. Estimates beginning j
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 I
month, as well as other differences in timing and coverage.
1




21
TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

2

DATE
30-YEAR

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES

1

NEW
Aaa CORPORATE
BONDS
4

•SPREAD BETWEEN
- YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES

1968 - High
Low
1969 - High
Low

7.52
6.78
8.62
7.99

7.40
6.75
8.35
7.55

.02
-.27
-.13
-.40

6.79
6.15
8.75
6.91

1.20
.26
1.08
-.13

1970 - High
Low

9.29
8.40

8.60
8.30

-.10
— .74

9.11
7.80

.99
.01

8.97
8.90
8.40

8.50
8.45
8.30

-.47
-.45
-.10

8.63
8.34
7.80

——

7.95
7.75

n.a.
n.a.

7.24
7.28

1970 - Oct.
Nov.
Dec.

"

1971 - Jan.
Feb.

1

2

3

4

.34
*56
-6o

\

'

A
^

n.a.

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 probable
volume of transactions. Yields computed by FHA, assuming prepayment period
o f 15 years for 30-year mortgages. Dashed lines indicate periods of adjustment to changes in contractual interest rates.

Based on FHA-field-office opinion'on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring officecities. Beginning with April I960, 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 1

DATE

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

EXISTSKG HOMES
CON- FEES &
LOW/
LQAK/
TRACT CHARGES EFFEC- MATU- PRICE
PRICE LOAN
(PER
RATIO AMI.
RATE
TIVE
RITY RATIO
CENT) RATE (YEARS) (PER
(PER ($000) (PER
CENT)
CENT)
CENT)
2
4
3

LOAN
AMI.
($000)

8.16
8.23
8.29
8.24
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
8.41
8.45
8.48
8.49
8.52
8.48
8.51
8.43
8.38

25.0
24.2
25.0
24.8
25.3
25.1
25.1
24.8
25.2
25.1
25.3
25.8

69.3
71.8
71.1
71.3
71.7
71.3
71.5
71.6
72.7
72.4
72.1
73.8

25.1
24.9
25.1
24.5
25.3
25.6
24.9
25.5
25.3
24.8
25.2
25.8

8.13
8.23
8.26
8.19
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
0.85

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

22.4
22.4
22.6
22.7
22.8
23.0
23.1
23.1
22.8
22.8
22.7
23.3

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

8.03
7.75

0.92
1.01

8.18
7.92

25.8
26.3

73.3
74.0

26.4
26.6

7.94
7.67

0.82
0.78

8.08
7.80

23.5
24.0

"

4

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

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

1971
Jan.
Feb.

1

,

72.5
73.2

22.0
22.5

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristies of conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data exelude loans for refinancing, reconditioning or modernization; construction loans to
home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series en 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.




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