Full text of H.16 Capital Market Developments : March 31, 1969

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LIBRARY

APR L %69
FED-;:. •. . :

o:L.5.8 Conf/duntiol.(r.R.)

fANK

DECONTROLLED AFTER SIX MONTHS.
March 31, 1969

CAPITAL
MARKET
DEVELOPMENTS

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




INDEX

3-5

Developments in the Corporate and Municipal Bond Markets

6-7

C a p i t a l Market Y i e l d s

8-13

Capital "Market Volume

14-17

Stock Market

18-33

Mortgage Market




TABLE r

CORPORATE BOND MARKET
VOLUME 2
PER CENT
GROSS
SOLD BY END
BONDS SCHEDULED
NEW ISSUE ' MOODY'S Aaa OFFERINGS
OF WEEK
WITHIN 28 DAYS
YIELDS

WEEK ENDING:

1969 - Feb.

7
14
20
28

Mar.

7
14
21
28
Apr. 4])/

Yields, Volume and Reception

6.63
6.66
6.66
6.68

172
340
150
265

6.72
- 6.75
6.94
6.99
n.a.

160
230
226
r/185
e/215

6.97
6.91
6.90
6.93
——

7.23
A 57
7,46
n.a.

;

85
74
100
100

"

50
25
- 100
97
n.a.

689
504
545
524
525
573
813
513 ,
n.a.

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

YIELDS
WEEK ENDING:

MOODY'S
Aaa

7
14
20
28

4.72
4. 72
4.70
4.80

4.96
4.96
4.95
5.04

Mar.

.7
14
21
28.

Apr.

4^y

4.90
4.9?
5.02
5.02
n.a.

5.19
5,26
5.29
5.30
n.a.

1969 - Feb.

200
71
341
340
94
88
rAl2
2J144
E/339

69
77
76
51
75
90
83
84
n.a.

720
645
510
448

-

408
575
741
- r 849
n.a.

/

1 Derived by adjusting to an Aagt basis, new issues of publicly-offered, corporate bonds
with call protection, rated A, Aa, or Aaa by Moody1 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.
n. a.-- Not available.




TABLE 2: Details bn Inventories
DATE
OFFERED

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

AMOUNT
(MIL. $)

3/26
3/26

J

15.0
50.0

DATE
OFFERED I RELEASED

Iowa-Illinois Gas & Elec.
G.A.C.

7-5/8
5-7/8

7,54
Aa
5.875 N.R.

5 yrs.
N.C.

ESTIMATED PROPORTION SOLD

90%
95%

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

NONE ,

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE

DATE
•1969 - Feb.
Mar.

28
7
14
21
28 E /

N.C. - No call protection,

549
530
456
r/400
366

268
143
111
r/83
75e

p Daily average of three days ended Wednesday.
millions of dollars, e/ Estimated.

Digitized for others
FRASER
as of Friday; in


CORBORATES
IN SYNDICATE
6
43
112
0
5
1 3i'ue List is daily average;

BONDS IN SYNDICATE
Millions of dollars

CORPORATE BONDS IN SYNDICATE
200

i—r—r—i—i—r~r—i—i—r
MUNICIPAL BONDS IN SYNDICATE

T

i—r

i—r

i — r — m

i—r

T
300

200

100

SEPT.

DEC.

67




MAR.

JUN.

1968

SEPT.

DEC.

MAR.

JUN.

1969

SEPT.

DEC.

TABLE 3: High Grade Bond Yields

DATE

MOODY'S SEASONED
NEW- CORPORATE
CORPORATE
ISSUES(ADJUSTED
Aaa 1
TO Aaa BASIS)

U.S, GOVERNMENT
20-YEAR CONSTANT .
MATURITIES 2 -

SEASONED
STATE AND LOCAL
GOVERNMENT
. Aaa 3

1966 - High
Low

5.99(9/2)
4.82(1/7)

5.52(9/9)
4.73(1/7)

5.04(2/9)
4.50(1/21)

4.04(8/25)
3.39(1/10)

1967 - High
Low

6.55(12/8)
5.11(2/10)

6.24(2/29)
5.00(2/10)

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

4.15(12/28)
3.25(2/9)

1968 - High
Low

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

6.53(12/27)
5.95(9/13)

5.90(12/20)
5.18(8/9)

4.57(12/26)
3.80(8/8)

6.68
4.80
6.15
6.93
Feb. 28
4.90
6.16
6.72
7.27
Mar. 7
.
4.92
6.75
6.24
7.23
14
5.02
6.27
6.94
7.57
21
5.02
6.22
6.99
7.46
' I 28d/
p
Preliminary.
1
Weekly average of daily figures. Average term of bonds included is 22-24 years.
2
Weekly average of daily figures.
3
Thursday figures. Only general obligation bonds are included; average term is 20
years.
' SOURCE: MOODY'S INVESTORS SERVICE
N o t e - - H i g h s a n d lows are for individual series and may be on different dates for different series.




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa l \

MOODY'S
^
CORPORATE Aaa

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

MOODY'S MUNICIPAL Aaa

1965




1966

1967

1968

1969

V

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

PERIOD

January
, February
March
April
M§y

1,237
973
450e/

1,138
1,156
1,394

1,482
1,196
1,438

750e/

1,314
1,140
1,396

1,111
1,229
1,497

2,457
2,406
1,723

1,466
1,688
1,435

943
858
1,300

2,100e/
l,725e/
2,000e/

2,289
1,467
2,3.36

2,227
997
1,112

974
1,400
1,182

5,014
5,544
4,982
5,825e/

5,364
6,058
6,584
6,092

3,698
3,850
4,589
4,336

4,119
3,837
3,131
3,556

8,925
12,127
16,463

7,956
11,087
14,643

1967

2,000e/
l,875e/
l,950e/

1,706
1,568
1,740

1,648
1,398
2,317

l,925e/

1,385
1,825
2,334

1,973
1,474
2,611

2,091
1,394
1,497

5,825e/

1st half
Three quarters
Year

1967

1968

October
- November
December
Quarter
Quarter. ,
Quarter
Quarter

1968

1969p

July
"August
September

1st
2nd
3rd
4th

STATE AND LOCAL 2

1

-

'

10,558
11,421
18,007
15,540
21,365e/ 24,098

1969 p

2,662e/

Excluding finance companies3
1st Quarter
2nd.Quarter
3rd Quarter
4th Quarter

4,943
5,265
4,882

5,207
5,913
6,338
5,657
23,115

e
p
1
2
3

Estimated by Federal Reserve.
Preliminary.
Securities and Exchange Commission estimates of net proceeds.
Investment Bankers Association of America estimates of principal amounts.
Total new capital issues excluding offerings of sales and consumer finance
companies.




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

QUARTER
OR
MONTH

TOTAL

1967 - III
IV
1968 - I
II
III
IV

6,833
6,294
5,178
5,705
5,133
5,951

1968 - Feb.
Mar.
Apr.
May
June
July
\ Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb. 2/

1,607
1,800
1,42.8
1,867
2,418
2,144
1,433
1,556
2,129
1,767
2,055
2,022
1,910

NET PROCEEDS
GROSS PROCEEDS FOR NEW CAPITAL
FOR NEW CAPITAL 1 2
AND REFUNDING 1
COMMON
AND
MEMO:
BONDS
COMMUNIPUBLIC
OTHER
ISSUES INCLUDED
PUBLICLY PRIVATELY PFD.
MFG.
UTILITY
CATIONS
ISSUES
STOCK
FOREIGN | CONVERTIBLE
PLACED
OFFERED
1,219
595
1,976
2,792
678
234 '
1,632
1,551
4,604
1,255
269
2,040
2,527
93
1,327
1,051
2,137
3,107
1,356
1,855
1,394
411
989
313
584
2,465
1,724
1,653
1,201
529
2,159
956
172
758
1,644
3,105
1,143
1,758
1,599
483
1,166
124
1,037
2,606
1,361
2,555
1,474
1,922
113
902 e /I, 675
e/1,385 e/305
e/2,460

796
766
719
1,046
1,340
1,244
637
725
1,009
939
607
978
810

•

585
593
438
521
685
528
400
433
595
362
965
591
550

226
441
271
300
385
372
396
398
525
466
483
453
550

61
236
31
89
52
.47
49
28
24
49
40
104
n,a
*

\
\

161
199
139
380
239
605
211
221
365
211
326
371.
n.a.

556
761
353
550
750
818
349
432
1(625
e/410
S/640
e/ 500
e/675

546
431
.
178
1
549
474
236
438
469
e/665

321
469
663
622
874
801
515
442

147
78
189
103
237
236
92
155

^ZllO
£/410 e/i55
e/40
1/310
el 575 e/ 150
e/60
1/325

±/700
e/750
e/1,010
e/ 775
e/815

p Preliminary, e Estimated by Federal Reserve. 1 Gross proceeds exceed net proceeds by the cost of
flotation. 2 For total see Table 4;
other issuers are extractive, railroad and other transporation,
real estate and finance, and commercial and other. SOURCE: Securities and Exchange Commission.
Quarterly supplements are available, r/ Revised.




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

TYPE

ISSUER
Corporate

MATURITY

During March m
COUPON
/
OFFERRATE OR
ING
NET INTER' YIELD
EST COST

MOODY'S
RATING

X

Texas Electric Svc. Co.
Ohio Power Company
Ohio Power Company
Gulf Power Company
Integrated Container Svc.
Liquidonics Industries Inc.
New York Telephone Co.
Southland Corporation
Talcott National Corp.
Martin-Marietta Corp.
*Polaroid Corporation
*Lyntex Corporation
Bank of Commonwealth, Det.
Consolidated Edison Co.
of New York
Wometco Enterprises
Potomac Electric Pwr. Co.
Potomac Electric Pwr. Co.
^Security Mortgage Investors
Miles Laboratories, Inc.
Kansas Power & Light Co*
Iowa-Illinois Gas & Elec.
Company
Transcontinental Gas Pipeline Corporation
G.A.C.




AMOUNT
(MILLIONS
OF
DOLLARS)

15.0
Bonds
15.0
Debs.
70.0
1st mtg. bds.
15.0
Bonds
20.0
Com. stk.
Conv. sub .notes 29.1
Ref. mtg. bds. 150.0
Conv. sub.debs. 40.0
Conv. sub. debs .25.0
Conv. debs.
50.0
Com stk.
100.5
Conv. debs.
15.0
Pfd. stk. w/w. 30.4

1999
1999
1999
1999

7-5/8
7-7/8
7-3/4
7-3/4

7.45
7.70
7.55
7.65

1983
2009
1989
1994
1994

5-1/2
7-1/2
5-1/2
6
6

n. a.
7.38
5.50
6.00
6.00

1989

6

6.00

7.90
5-1/2

7.98
'5. 50

lst&ref.mtg.bds.80.0
1999
Conv. sub. debs .15.0
1994
Pfd. stk,
25.0
45.0
2004
Com. stk,
16.5
Conv. debs.
20.0 . 1994
1st mtg. bds.
19.0 .1999

Aa
A
Aa
A
—

Aaa
B
——

Ba

A

7-3/4

7.80

Aa

5-1/4
7-5/8

5.25
7.60

Ba
Aa

1st mtg. bds.

15.0

1999

7-5/8

7.54

Aa

Debs.
Conv. debs.

60.0
50.0

1989
1994

8-3/8
5-7/8

8.43
5.87

Ba

'

TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury)1
(continued)
Purine March
AMOUNT
COUPON
(MILLIONS
RATE OR
OFFERISSUER
TYPE
MATURITY NET INTEROF
ING
EST COST
DOLLARS)
YIELD

-1269-

MOODY'S
RATING

State & local Government
State of West Virginia
The New Jerisey Turnpike
Authority
Atlanta, Georgia
State of Washington
State of Washington
State of Washington

Other —^
Province of Manitoba
Federal National
Mortgage Association

Bonds

20.0

Rev.
G.O.
Rev.-rent.
G.O.
G.O.

60.0
12.0

,1970-94

5.18

4.10-5.20

10.0

2008
1992-95
1970-94
1970-89
1970-87

5.79
5.75
4.35-5.30 5.15
5.84
4;30-5.80
5.16
4.25-5.25
5.12
4.25-5.25

Debs.

35.0

1994

7-7/8

7.90

Debs.

162.5

1971

6.85

6.85

_L_

42.0
15.0

A-l
Aa
A
Aa
Aa

Rights offering.
Includes corporate and other security offerings of $15 million and over;
State and local security offerings of $10 million,and over.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal Agencies.
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.




\

TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
^
(Other than U.S. Treasury)1
As of March 28. 1969.

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
Debs.
Sybrori -Corporation
Equip, tr. ctfs.
*Union Tank Car Co.
Conv. sub. debs.
Sunshine Mining
Continental Airlines, Inc.
Com. stk.
Pacific Tele. & Tele. Co.
Com. stk.
*Security National Bank
Com. stk.
Dayton Power & Light Co.
Pfd. stk.
Public Svc. Elec. & Gas Co. lst&ref.mtg. bds.
*Hudson's Bay Oil & Gas Co.
Coll. tr. bds.
Conv. sub. debs.
Dillingham Corporation
Texas Power & Lt. Co.
-Pfd. stk.
Texas Power & Lt. Co.
Debs.
Pacific Gas & Elec. Co.
Bonds
*Inland Steel Co..
1st mtg. bds.
Alexander's Dept. Stores
Com. stk.
G.S.I. Computer
Com. stk.
Gamble-Skogomo, Inc.
Cap. notes
Beneficial Finance
Debs.
Teledyne, Inc.
Debs.
^Maryland Cup Corporation
Conv. debs.




30.0
20.0
25.0
30.0
15.3
17.3
15.3
75.0
25.0
50.0
30.0
20.0
80.0
50.0
20.0
30.0
20.0
50.0
30.0
15.0

April
1
1
April
April
1
l(rts.
April
April
l(rts.
l(rtx.
April
l(rts.
April
1
April
2
April
April
7
April
8
8
April
April
9
April 15
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite
Indefinite

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

As of March 28. 1969.

ISSUER

AMOUNT
(MILLIONS
OF
DOLLARS)

TYPE

APPROXIMATE DATE
OF OFFERING

State & local Government
Tucson Comm. Center Auth.,
Arizona
California Dept. of Water
Resources
Suffolk Co., New York
Meaphis, Tennessee
Kansas City, Kansas
State of California
Fla. State Bd. of Educatior
State of Virginia
New Haven Coliseum Auth.,
Connecticut
Port of Oakland, Calif.
Washington Sub. San. Dist.,
Maryland
Commonwealth of Penna,
Chicago, Illinois
Genesee Co., Michigan
Essex Co., New Jersey
*East Baton Rouge Par.
Consol, Sch. Dist., La.
San Francisco B.A.R.T.
*Ohio, State of
Boulder Valley Sch. Dist.,
#R-2» Colorado
Phila. Sch. Dist., Pa.
*Fhoenix Civic Plaza Bldg.
Corporation, Arizona
^Indianapolis San. Dist.&riL
*Penna. State Pub. Sch.
Builditig Authority
^Minnesota, State of
Hawaii, State of
Lancaster Area Swr. Auth.,
Pennsylvania
Richmond Metro. Auth., Va.
Mass. Port Authority
Cobb Co., Georgia
King Co., Washington,

Rev.

12.3

April

1

Rev.
Bonds
G.O.
Bonds
Bonds
Bonds
Bonds

93.5
14.9
27.0
10.0
93.5
39,0
81.0

April
April
April
April
April
April
April

1
1
1
1
1
1
2

Rev.
Bonds

19.5
11.0

April
April

7
7

G.O.
Bonds
Bonds
Bonds
Bonds

23.0
116.8
28.0
30.7
16.0

April
April
April
April
April

8
8
10
10
10

Bonds
Bonds
Bonds

10.0
70.0
45.0

April
April
April

15
17
22

G.O*
Bonds

10.0
30.0

April
April

2Z.
22

Bonds
Bonds

18.0
14.3

April
April

22
22

32.0
33.8
30.0

April
April
April

29

Bonds
G.O.
Rev.

j

Rev.
Bonds
Rev.-Rent.
Rev.-Ut.
G.O.

19.0
100.0
63.0
37.0
33.5

Conv. debs.

20.0

April
Indefinite
Indefinite
Indefinite
Indefinite

Other 2/
Neon Products of Canada,
Ltd.




April

23

13 a

Footnotes:
*
1
2

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.
j
Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues of Federal AgenciesL
Postponements this week:
(
Mountain States Tel. & Tel. Co.'s $100 million debenture offering schedulec
April 7 — owing to "unfavorable market conditions."
Chrysler Corporation also postponed indefinitely its $100 million issue
originally scheduled for April 1.




TABLE 8: Stock Prices and Volume
TRADING VOLUME 2

STOCK PRICES '
S&P
500

DATE

D.J. - 1ND.

AMEX 4

NYSE

AMEX

1966 - High
Low

94.06(2/9) 995.15(2/9)
73.02(10/7) 774.32(10/7)

17.00(4/21)
12.07(10/7)

10.74(4/15)
5.0(9/23)

6.1(4/15)
1.3(9/23)

1967 - High
Low

97.59(9/25) 943.08(9/25)
80.38(1/3) 786.41(1/3)

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

12,3(12/29)
6.9(1/6)

6.7(10/27)
2.1(1/6)

1968 - High
Low

108.37(11/29)985.21(12/3)
87.72(3/5) 825.13(3/21)

33.25(12/20)
22.00(3/22)

17.1(7/12)
8.2(3/29)

9.2(5/31)
2.9(3/29)

951.95
916.65
905.21

32.56
30.94
29.98

11.8
11.4
10.7

5.9
5.8
4.9

911.18
904.28
920.00
935.48

29.61
29.48
30.00
30.53

1969 - Feb. 14 103.61
99.79
98.13
Mar.

p
1.
2

7 98.65
14 •98.00
21 99.63
28p /L01.51

9.9

4,5

9

3.8
4.3
5.0

-2
10.0
10.7

Preliminary. .
Figures, except highs and lows are Friday's only. Highs and lows are for the
year and are not necessarily for Friday's.
Averages of daily trading volume on the New York and American Stock Exchanges.
Millions of shares.

3

1941-43 = 10

4

Based on actual dollar value, rather than a formula.




IS

STOCK PRICES AND TRADING VOLUME
EX

Weekly

DJ: SAP
t| i it iiii i i ill (Ind.) (500)

STOCK PRICES

AMEX PRICE LEVEL INDEX

S&P * 500

1040

104

980

98

920

92

860

86

800

80

740

74

DJ. MD.

AMEX TRADING VOLUME
10
5

'.m-

0
NYSE TRADING VOLUME

-

20
15
10
5
0

1965

1966




1967

1969

TABLE 9: Stock Market Credit
CUSTOMERS'
CREDIT EXTENDED TO CUSTOMERS BY: NET DEBIT
BROKERS 1 | BANKS 2
TOTAL
END OF PERIOD
BALANCES

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

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

6,150
6,190
6,430
6,640
6,690
6,500
6,460
6,390
6,250
6,200
6,200
5,910
5,7.10

2 ,420
2 ,370
2 ,350
. 2,360
2 ,410
2 ,420
2,490
2 520
2 560
2 630
2 710
2.,750
2,,810

8,570
8,560
8,780
9,000
9,100
8,920
8,950
8,910
8.810
8,830
8,900
8,660
8,520

1
2
3

2,768
2,692
2,979
3,064
3,293
3,269
2,984
3,126
3,407
3,419
3,717
3,597
3,645

4,651
4,556
4,722
5,204
5,435
5,592
5,505
5,590
5,452
5,610
6,073
5,510
5,411

,

Change in:
Outstanding
1968 - Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb. j]f,

.

7,419
7,248
7.701
8,268
8,728
8,861
8,489
8,724
8.859
9,029
9,790
9,107
9,056

-20
40
240
210
50
-190
-40
-70
-140
-50
—

-290
-200

-10
-50
-20
10
50
10
70
30
40
70
80
40
60

—

-30
-10
220
220
100
-180
30
-40
100
20
80
-240.
-140

378
-171
453
567
460
133
-371
235
.135
170
761
-683
-51

;

-164
-76
287
85
229
-24
-285
142
281
12
298
-120
48

-23 4
-85
166
482
231
156
-86
85
-138
158
563
-501
99

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."
i
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 lend of month data.
Bank loans are for weekly reporting large commercial banks.




'

TABLE 10; Savings Flows at Nonbank Depositary Intermediaries
($ millions)

1

DATE

1966
1967
1968

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

4.9
9.3
7.3

2,557
5,082
4,362

1967 - Dec.
1968 - Jan.
Feb.

627
266
350

-—

1968 - Dec.
1969 - Jan.
Feb.

674
214
320

—

1968 - Oct.
Nov.
Dec.

363
395
342

6.9
7.5
6.4

1969 - Jan.
Feb. 2/

216
373

1
2
3
p
*

"

:

4.1
7.0

227
2,376
1,143

TOTAL
SAVINGS & LOAN ASSOCIATIONS^
DEPOSITS •
NET
SHARE CAPITAL
' ANNUAL
NEW
ANNUAL
GROWTH
NET
GROWTH
MONEY 2 NET
RATE 1
FLOW •
FLOW
RATE 1
Not Seasonally Adjusted
3.2
3,584
-552
6,129
10,687
9.4
7,396
5.9
2,676

, 6,141
15,769
11,758

3.8
9.4
6.2

-325
8,505
3,819

-17
162
301

1,586
-251
584

150
-270
559

' 2,213
15
934

—*

-26
106
260

__
1,643
178
-76
-114
590
574
Seasonally Adjusted

2,317
138
910

——

__

, 764
620
620

7.1
5.7
5.7

1,127
1,015
962

7.0
6.3
5.9 .

538
567

4.9
5.2

—
—

—--

—

•'

754
940

NET
NEW '
MONEY 2

•

4.6
5.8

140
-108
860
152
-8
834

__
——

, —~

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits
Net New Money is the net change in deposits net of both, withdrawals and interest. Data for S&Ls
are for insured associations only, which represent 9,6% of the total resources of the industry.
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,
Preliminary.
S&L series reflects FHLB revisions of data shown here through 1968.




19

SAVINGS FLOWS (seasonally adjusted)
Monthly

Millions of dollars

2000
1600
.TOTAL

1200
800
400

400

SAVINGS & LOANS

/ ^ M U T U A L

SAVINGS BANKS
-

1
1965

1
1966




1 1 1 1 1 I I I I 1 1 11 1 1 III
1967

1968

1969

I I 1 I I 1

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

1968- Feb.
Mar.
Apr;
May
June
July
Aug.
Sept.
Oct.
• Nov.
Dec.
1969- Jan.jj/
Feb. 2./

1

TOTAL

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

1

NET CHANGE
V ALL
SAVING'S &
LOAN
ASSOCIATIONS
(Billions of Dollars, Seas<mally Adjusted) 1/
TOTAL

8.4
8.6
8.7
8.6
8.6
8.8
9.0
9.1
9.5
9.7
9.7

5.9
6.1
*6.2
6.0
5.9
6.1
6.1
6.2
6.4
6.5
6.6

2.5
2.5
2.5
2.6
2.6
2.7
2:9
2.9
3.0
3.2
3.1

.04
.17
.14
-.13
.04
.24
.16
.14
.35
.27
-.01

9.9
10.1

6.7
6.9

3.2
3.2

.15
.25

'
MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

. 09
.15
•14
-.16
-.10
.16
.10
.22
.10
.08

.02
.06
.08
.16
.04
.13
.17
-.10

.08
.22

•07
,03

--

"

Based on data from Federal Home Loan Bank Board and Savings Banks Assoications of
New York State. Net changes are derived directly from unrounded outstandings
levels as reported and after seasonal adjustment by Federal Reserve. Subtotals
may not add to totals because of rounding.




-.05
.02

MORTGAGE COMMITMENTS OUTSTANDING (saar)
Billions of dollars

Monthly

r~

r ~ — i

i

i

r

10

-

TOTAL

SfcL'S

MSB'S

1
1959




I

1961

I

I

L
1963

1965

1969

TABLE 12: Net Change in Mortgage Holdings 1

TOTAL
INCLUDING
. FNMA

TOTAL

4,761
6,365
6,469
6,303

4,813
6,431
6,403
5,947

r/5,425
/5,648
r/3,976
r/3,056

i/4,630
r/5,097
r/3,468
]:/2,587

r/2,617
r/4,868
r/6,285
r / 6 ,2 46

FINANCIAL INSTITUTIONS
SAVINGS
MUTUAL'
&
SAVINGS
COMMERCIAL
LOANS
BANKS
BANKS
823
1,749
1,805
1,322

LIFE
INSURANCE
COMPANIES

965
946
1,072
1,078

1,860
2,706
2,460
1,947

1,165
1,030
1,066
1,600

975
1,656
1,300
774 :

753
513
739
715

r/1,683
r/1,651
r/373
r/54

1,219
1,277
1,056
1,044

r/2,267
7/4,762
]/5,706
2/5,484

151
1,200
1,751
1,537

770
786
839
758

r/ 486
r/2 ,119
r/2,595
r/2,320

860
657
521
869

• Jan. r/1,403
Feb.- r/1,577
Mar.
1,788
Apr.
1,969
May
2,227
June
2,125
July
1,818
Aug..
1,949
Sept. 1,954
Oct.
2,307
Nov.
2,082
2,458
Dec.

r/1,053
r/1,273
1,514
1,723
1,992
1,905
1,66 6
1,808
1,846
2,14 6
1,93 7
2,286

300
400
400
616
616
616
500
500
700
800
700
400

215
197
137
160
203
219
248
233

1,646
n.a.

1,445

400
500

313
310
319

380
542
789
879
957
901
718
874
810
845
732
903

r/157
r/134
188
68
216
169
200
201
115
188
195
664

289
n.a.

622
684

r/134

221

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 the Federal 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.
.




NET CHANGE IN MORTGAGE HOLDINGS
Monthly

Billions of dollars

3.0

2.5

TOTAL, INCL. FNMA

2.0

1.5

1.0

FINANCIAL INSTITUTIONS

1966




1967

1969

QUARTER

TOTAL

1965 - I
II
III
IV

25.5
25; 3
25.7
26.2

1966 - I
II
III
IV

29.1
23.6
17.7
14.6

1967"- I
II
II
IV

16.2

1968 - I
'II
II.
IV

20.3

28:0
27.7

26.0

25.7
28 J8

TABLE 13: Net Increases in Mortgage Debt Outstanding 1
(Seasonally Adjusted Annual Rate)
1- to 4- MULTIMULTI-AND
RESIDENTIAL
FAMILY
FAMILY COMMERCIAL
COMMERCIAL

18.6
18.5
19.3
19.6

15 ;1
15 ;1
15.5
15.8

3.5
3.5
3.8
3.8

4.2
4.5
4.4
4.6

14.7

4.3
3.3
2;3

7.0

6.1

2.0

5.1
4.0

3.1
3.3
3.8
4.4

3.8 .
4.8
4.8
5.1

19.0
15.3

12.1

9.2

8.3
7.2

10.6

9.9
13.7
19.1
20 o 9
18.2
18.5

18.0

1

6.8

10.5
15.3
16.5

16.3
14.6
14.6
n. a.

2.0
3.9
3.4

6.3
.5.3
5.5

FARM

8;0

2.2

8.3
7,9

2.2

8.1

11.7
9.4
7.7
5.6
7.3

8.0

8.8

2.1

2.4
2,4

2.2

2.1
1.7

1.8
1.9
2.4

8.8

2.6

a.6

2.5
2.3
2.3
n. a.

9.2
9.2
n. a.

Derived from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National-Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association, Federal Housing Administration,
Veterans Administration and Comptroller of the Currency. Separation of nonfarm mortgage debt by type of property, where not available, and interpolations
and extrapolations, where required, estimated by Federal Home Loan Bank Board
, and the Federal Reserve.
2 Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage defct combined.
r/

Preliminary.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly




Billions of dollars, seasonally adjusted annual rate

TOTAL

TOTAL
RESIDENTIAL

7

I 1 - 4 FAMILY

COMMERCIAL

MULTIFAMILY

1967

•\

;

'• '

•••' • • A

TABLE 14: FNMA Weekly "Auction" Results

WEEK
ENDED

TOTAL
-OFFERED

AMOUNTS IN $ MILLIONS
ACCEPTED
TOTAL
9061- V
MONTH Year&over
DAY

IMPLICIT YIELD £/ (per cent)
90DAY

6MONTH

1-1/
Year & over

Feb. 3
10
17
24

320.6
285.7
226.7
167.2

80.0
102.4
100.9
100.1

5.3
6.8
6.9
11.2

35.9
46.2
38.4
48,7

38.8
49.4
55.6
40.1

7.98
8.01
8.04
8.09

7.99
8.05
8.09
8.14

7.82
7.91
7.95
8.00

Mar. 3
10
17
24
31

118.9
127.1
132.7
220.9

90.5 11.5
84.6
7.5
88.5
3.1
84.1
3.5
(90.0)3/

38.1
37.0
45.6
47.4

41.0
40.2
39.833.3

8.13
8.14
8.09
8.10

8.17
8.13
8.08
8.09

8.02
8.00
7.95
7.93

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

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 in 15 years for 30-year
Government-underwritten mortgages. Yields shown are gross, before deduction of
50 basis point fee paid by investors to servicers.

3

FNMA announced limit of accepted bids for next week's auction.




FNMA WEEKLY "AUCTION" RESULTS
AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

100

\

6-MONTHS

40

| 90 DAYS
IMPLICIT. YIELD

8.0

6—MONTH COMMITMENTS

JUNE




AUGUST

1968

OCTOBER

DECEMBER

FEBRUARY

1969

APRIL

TABLE 15: Private housing starts and Permits
STARTS
SEASONALLY ADJUSTED
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

1968 - Feb.
1,537
Mar.
1,511
Apr.
1.591
May
1.364
June
1.365
July
1,531
Aug.
1,518
Sept. 1.592
Oct.
1,570
Nov.
1,733
Dec. r/L,509

1,075
462
920
591
922
669
838
526
790
575
904
627
867
651
648
944
965
605
905
828
r/922 r/585

84.6
126.6
162.0
140.9
137.9
139.8
136.6
134.3
140.8
127.1
r/96.4

1969 - Jan. r/1,842
. Feb.
1,700

r/1,053 r/789
982
718

r/100.0
90.7

UNADJUSTED
TYPE OF FINANCING
FHA VA
OTHER

17.0

4.1

63.5
102.4
134.0
5.5
114.9
5.0
113.1
4.9.
116.2
4.8
110.9
4.6
111.1
5.3
114.0
4.2
105.4
4.4 r/75.7

19.6 4.5
22.6 5.4
20.5
19.8

18.8

20.9

18.6

21.4
17.5
16.3

14.1 3.8
13.2 .3.5

r/82.1
74.1

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2
1,394
1,416
1,340
1,280
1,281
1.289
1.290
1,393
1,378
-1,425
1,463
1,403
1,506

Total starts are Census estimates including farm for both permit-issuing and
non-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. Capehart military housing units are excluded. 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 1.0,000 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.
Revised.
p . Preliminary.




PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED DATA

2.0

1.6
HOUSING STARTS J

BUILDING PERMITS
(in issuing areas)

PER CENT OF UNADJUSTED TOTAL STARTS
MULTI-FAMILY

40

(3 or more)

,
1963




1965

GOVERNMENT UNDERWRITTEN
1967

1969

TABLE 16: Mortgage and Bond Yields

DATE

FHA
MORTGAGES 2

SPREAD BECONVENTWEEN YIELDS
TIONAL
MORT- * ON CONV, &
25-YEAR 30-YEAR GAGES
FHA MORT3
GAGES 4

1957 - High •
1958 - Low
1959-60 - High
196-1-66 - Low
1966 - High
1967 - High
Low
1968 - High
Low

5.63
n.a.
n.a.
5.35
n.a.
6.24
5.43
5.44
6.73
6.81
n.a.
6.81
n.a.-—-"6.29
n.a.
7.52
6.78
n.a.

6.00
5.55
6.30
5.80
6.70
6.65
6.40
7.30
6.75

1968 - Oct.
Nov.
Dec.
1969 - Jan.
• Feb.

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

7.25
7.30
7.40
7.55
7.60

Y

7.29
7.36
7.50
——

7.99

;

1

NEW
Aaa COR.BORATE
BONDS
5

.47
.15
.23
.25
.30
.11
-.12
.02
-.27

4.94
3.65
5.25
4.41
5.82
6.51
5.18
6.79
6.15

-.04
-.06
-.10

6.47
6.61
6.79
6.92
6.92

—

-.39

SPREAD BETWEEN
YIELDS ON NEW
CORPORATE BONDS
AND
FHA MORTGAGES
1.58
.88
1.69
.77
1.16
1.28
.27
1.20
.26
.82
.75
.71
1.07

Neither mortgage nor bond yields take into account servicing costs which arc
much higher for mortgages than 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
itable.
2 Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. Separate
data available for 25-year and--beginning July 1961-.-30-year mortgages with
minimum downpayments, weighted by probable volume of transactions. Yields
computed, by FHA, assuming prepayment period of 12 years for 25-year mortgages
and 15.years for 30-year mortgages. Over the period for which they can be
compared, the movement of the two mortgage yield series has been similar.
Dashed lines indicate periods of adjustment to changes in contractual interest:
rates.
.
3 Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring office
cities. Beginning with April 1960, rate relates only to new-home mortgages;
prior to that date, rate related to both new as well as existing-home mortgages . Dashed line indicates this change in the series.
4 FHA mortgage yield data are for 25-year mortgages through June 1961; 30-year
mortgages thereafter.
5 See note for Table I. (Data prior to 1965 is based on a composite of issues with
and without call protection.) n„a. Not available.




31

MORTGAGE AND BOND YIELDS
Monthly

Percent
TTTT

HOME MORTGAGES:
CONVENTIONAL
FHA

Aaa CORPORATE BONDS:
NEW ISSUES

1961




1963

1965

1967

1969

TABLE 17: Conventional Mortgage Terms

DATE

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

1

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

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

21.9
74.5
22.2
74.3
73.4 '21.9
21.7
73.2
74.4 . '22.3
22.2
73.7
22.6
73.6
22.1
74.2
22.7
74.5
22.5
74.1
74.0 '24.7

6,58
6.59
6.64
6.81
6.97
7.10
7.12
7.11
7.09
7.07
7.09

LOAN
AMT. 1
($000)

.1968
6.47 0.94
Feb.
6.50 0.88
Mar.
Apr.
6.57 0.88 .
6.69 0.95
May
6.88 0.95
. June
July
7.04 0.85
Aug.
7.10 0.87
Sept. l 7.10 0.87
Oct.
7.09 . 0.88
Nov..
7.07 0.84
Dec. . 7.09 0.89

6.62
25.5
6.64
25.7
6.71
25.3
6.84
25.0
7.03— -25.4
25.5
7.17
7.24
25.5
25.5
7.24
25.6
7.23
7.21
25.4
7.23
25.9

0.81
0.79
0.80
0.87
0.86
0.83
0.85
0.82
0.84
0.82
0.85

6.71
6.72
6.77
6.95
7.12
7,23
7.26
7.25
7.22
7.21
7.23

22.6
23.0
22.6
22.5
22.6
22.5
22.7
22.6
22.5
22.7
. 23.3

73.6
73.3
72.8
73.1
73.1
72.6
73.0
72.6
72.4
72.9
73.2

17.9
18.3
18.1 .
18.3 .
18.2
18.5
18.6
18.3
18.3
18.9 ,
20.4

1969
7.16
Feb. 2/ 7.26

0.84
0.80

r/7.30
7.39

25.6
25.6

73.6
73.2

24.1 1/7.18 r/0.86 r/7.32
23.5 " 7.28 • 0.86 ~ 7.42

r/22.8 r/72.6 r/20.0
~ 22.9 ~' 72.8 ~ 19.7

r
1

Revised.
p Preliminary
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--in this exhibit--permanent loans which are coupled with construction
loans to owner-builders. Data prior to 1965 on a comparable basis with the new series
are-pending. Related series on conventional mortgage rates only, based on unweighted
opinions of regional-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.




CONVENTIONAL MORTGAGE TERMS
Monthly

Years

30
MATURITY
NEW

EXISTING

80

LOAN/PRICE RATIO

75

NEW

EXISTING

1963




1965

1967

1969
* CHANGE IN SERIES