Full text of H.16 Capital Market Developments : June 15, 1970
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DECONTROLLED AFTER SIX L.5.8 Confidential (F.R.) JUNE 1 5 , LIBRARY JUi\la-197u VttfHiM. M'StHV B 1ANK Qt X1NATMD CAPITAL MARKET DEVELOPMENTS Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D. C. 1970 INDEX 3-5 Developments in the Corporate and Municipal Bond Markets 6-7 Capital Market Yields 8-13 Capital Market Volume 14-17 Stock Market 18-33 Mortgage Market SYMBOLS: e Estimate p Preliminary r Revised n.a. Not available • TABLE 1: Yields, Volume and Reception WEEK ENDING: 1970 - May YIELDS MOODY'S SEASONED NEW ISSUE1 Aaa 1 8 15 22 28 8.91 8.98 9.10 9.05 9.20 June 5 12 19 9.05 9.23 . n.a. WEEK ENDING: 1970 - May June 1 8 15 22 28 1 5 | 12 i 19£/| 7.92 7.99 . 8.09 8.16 8.21 8.30 8.42 n.a. YIELDS . BOND BUYER MOODY'S SEASONED •SEASONED 20 Aaa BOND INDEX CORPORATE BOND MARKET VOLUME 2 PER CENT BONDS SCHEDULED GROSS SOLD BY END OF WEEK WITHIN 28 DAYS OFFERINGS 195 345 610 284 222 99 100 97 62 96 2,717 2,636* 2,385* 1,044 819 261 383 500e 84 89 n. a. 1,069 1,285 n. a. ' MUNICIPAL BOND MARKET VOLUME2 PER CENT 1 SOLD BY END 1 BONDS SCHEDULED GROSS OF WEEK | WITHIN 28 DAYS OFFERINGS 6.50 6.55 6.70 6.74 6.80 6.79 6.89 6.96 7.02 7.12 196 113 319 250 245 6.75 6.85 n.a. 6.92 7.03 90 302e 400e 77 68"" 70 63 86 69 72 n.a. 530 624 449 508 308 608 754 i 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 AT&T rights offerings included in May estimate. TABLE 2: Details on Inventories ' AMOUNT . (MIL. $) , DATE OFFERED 30.0 10.0 25.0 125.0 6/10 6/10 6/9 6/9 DATE OFFERED j RELEXSED June * 9 3/4 " 9.75 9 5/8 9.50 9 5/8 9.40 . 9.00 9.05 A Aa Aa Aaa 5 5 5 5 yrs.' yrs. yrs. yrs. ESTIMATED PROPORTION SOLD 45 20 40 98 % % % ' % • CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT ISSUER COUPON YIELD IN YIELD CALL PROT. PORTION RELEASED 30.0 35.0 Western Mass. Elec. Kansas City P & L INVENTORIES 1 MUNICIPALS BLUE LIST | IN SYNDICATE DATE 1970 - May 1• Lone Star Gas Union Light West Penn Power P.P. G. Industries 6/8 6/8 6/3 6/4 T CORPORATE BONDS IN SYNDICATE END OF LATEST WEEK ORIGINAL RATING AND YIELD CALL PROTECTION • ISSUER . COUPON 9 3/8 9 1/8 9.28 9.05 + 16 Aa 5 yrs. + 15 ' Aaa5 yrs. 50% 75 % CORPORATES IN SYNDICATE 15 22 29 463 499 443 128 184 78 17 108 9 5 12£/ 375 396 54 92 41 42 ' N.C-. - No call protection. 1 All figures in millions of dollars. Blue List is daily average for week ended Friday,except for L .cust week which is daily average of three days ended Wednesday. All other figures are as of Friday. BONDS IN SYNDICATE Friday figures *» Millions of dollars CORPORATE BONDS IN SYNDICATE 100 MUNICIPAL BONDS IN SYNDICATE 300 200 100 SEPT. DEC. 66 MAR. JUN. 1969 SEPT. DEC. JUN. 1970 SEPT. DEC. TABLE 3: High Grade Bond Yields NEW CORPORATE Aaa 1 DATE MOODY'S SEASONED . CORPORATE Aaa 2 U.S. GOVERNMENT 20-YEAR CONSTANT MATURITIES 3 " BOND BUYER1S 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 (12/26) 6.55 (1/3) 6.97 (12/26) 5.96 (1/24) 6.90 (12/18) 4.82 (1/28) 9.23 (6/12) 8.20 (2/27) 8.42 (6/12) 7.79(3/6) 7.55 (5/29) 6.60 (3/6) 7.12 (5/29) 5.95 (3/12) 1970 - May 15 22 29 9.10 9.05 9.20 8.09 8.16 8.21 7.12 7.17 7.55 6.96 7.02 7.12 June 5 12 9.05 9,23 8.30 8.42 7.33 7.43 6.92 7.03 1970 - High Low 1 ; New corporate issues, with call protection, adjusted (as described in " footnote 1 of Table 1) to a Aaa basis. 2 Weekly average of daily figures. Average term of bonds included is 22:24 years. 3 Weekly average of daily figures. 4. Thursday figures. The average rating of the 20 bonds used in this index 1 falls midway between the four top groups as classified by Moody's Investors Service. Note--Highs and lows are for individual series and may be on different dates for different series. HIGH GRADE BOND YIELDS Per cent NEW CORPORATE Aaa MOODY'S CORPORATE Aaa U S. GOVT. 2 0 YR. CONSTANT MATURITIES BOND BUYER MUNICIPAL 1966 1967 1968 1969 1970 TABLE 4: Long-term Corporate and.State and Local Government Security Offerings and Placements (In millions of dollars) —GROSS PROCEEDS CORPORATE . PERIOD 1970 1 1969 STATE AND LOCAL 2 1968 1970 1968 1969 January February March 2,601 1,830 3,400e 2,075 2,045 2,098 i . 1,338 1,771 1,608 . | 1,^12 1,799 J 1,499 1,262 987 538 1,178 1,158 1,404 April May June 3,000e 3,500e 2,600e 2,748 2,076 2,530 1,428 1,866 2,411 1,801 1,110 737 1,318 1,143 1,395 July August September 2,478 1,427 2,427 • 2,143 1,432 1,557 1,097 808 559 1,469 1,699 1,444 October November December - 1,933 2,375 2,532 2,129 1,767 2,054 1,280 886 816 2,230 1,021 1,115 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 1st half Three quarters Year 7,831e 9,l00e 6,218 7,354 6,332 6,840 13,572 19,904 26,744 £ 5,178 5,704 5,133 5,950 10,882 16,015 21,965. 1 | ; 1 1,630 1,OOOe 900e ! - . j 4,049e/ 3 ,530B/ 2,787 3,840 3,648 3,856 2,464 4,612 2,982 ' 4,366 6,435 8,899 11,881 7,956 12,008 16,574 Excluding finance companies 3 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year ~ 1 2 3 6,170 7,037 5,107 5,427 4,785 5,654 20,973 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. Note: AT&T rights offering included in May estimate. TABLE 5: New Corporate Security Issues, Type of Issue and Issuer (In millions of dollars) GROSS PROCEEDS BY TYPE OF ISSUE COMMON AND BONDS MEMO: PUBLICLY PRIVATELY PFD. ISSUES INCLUDED MFG. FOREIGN | CONVERTIBLE OFFERED , PLACED STOCK 1 QUARTER OR MONTH TOTAL GROSS PROCEEDS BY TYPE OF ISSUER PUBLIC UTILITY COMMUNICATIONS. OTHER ISSUERS1 6,218 7,354 6,332 6,840 8,230 2,657 3,411 3,186 3,479 4,968 1,540 1,673 1,347 1,053 1,092 2,023 2,268 1,797 2,307 2,170 215 227 289 115 n.a. 1,355 1,126 . 750 809 929 1,407 1,773 1,862 1,314 2,671 1,346 1,878 1,544 1,967 2,320 473 432 684 598 511 2,993 3,266 2,243 2,961 2;729 1969 - May 2,076 June 2,530 July 2,478 Aug. 1,426 Sept. 2,427 Oct. 1,933 Nov. 2,375 Dec. 2,532 1970 - Jan. 2,601 1,830 Feb. Mar.e/ 3,400 Apr.j2/ 3,000 May < 3,500 871 1,272 1,279 685 1,222 969 1,164 1,346 1,594 / 1,068 1,900 510 514 609 259 479 313 226 514 485 292 400 400 300 694 744 589 482 » 726 651 984 672 522 470 1,100 600 200 28 137 132 122 35 59 8 48 60 33 n. a. n.a. n.a. 463 233 214 167 369 105 303 401 387 249 250 330 '200 569 691 875 362 625 260 453 601 787 371 1,500 800 850 392 702 493 507 544 745 622 600 639 540 820 960 450 197 191 286 126 272 120 201 277 229 226 260 25 1,800 915 946 826 433 984 808 1,099 1,054 947 694 820 1,215 400 1969 - I II III - IV 1970 - I e/ V 2,000 3,000 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. X TABLE 6: Large Long-term Public Security Issues for New Capital ' (Other than U.S. Treasury)1 • p. 1 t-hrni ph 12, 1 Q70 ISSUER • \ \ TYPE 2 AMOUNT (MILLIONS OF DOLLARS) MATURITY COUPON ' RATE OR NET-INTEREST COST OFFERING YIELD MOODY'S RATTNC. Corporates Debs 100. 0 Scott Paper Co. 25.0 Central Hudson Gas & Elec. Co. 1st Mtg. 23.0 Debs Mapco Inc. 30. 0 1st Mtg. Western Mass. Elec. Co. Western Mass. Elec. Co. Pref. Stk. 15. 0 American Natural Gas Co. Com. Stk. 38.2 Tampa Elec. Company Pref. Stk. 15.0 24. 6 *General Public Utilities Corp, Com. Stk. Kansas City Power & Light Co. 1st Mtg. 35.0 Pref. Stk. Tampa Electric Co. 15. 0 Conv. Sub. Chape Manhattan Mortgage & 40. 0 Realty Trust Debs. Chase Man. Mtg. & Realty Trust Benf. Int. 60.,0 Consumer Power Co. Com. Stk. 40..0 Mich. Consolidated 1st Mtg. 30 .0 P.P.G. Industries S.F. Debs. 125..0 16..0 Pref,, Stk. San Diego G & E 1st Mtg. 30,.0 Holiday Inns Texas Eastern Transm. Corp. 1st Mtg. 50,.0 30 .0 Lone Star Gas Co. . S.F. Debs. 1st Mtg. West Penn. Power 25 .0 General Telephone of Calif. Debs 70 .0 Consolidated Edison Co., N.Y . Com. Stk. 73 .4 Cincinnati Gas & Electric Pref . Stk. 35..0 2000 2000 1975 2000 8.88 9.38 11. 00 9.38 8.90 9.33 11. 00 9.28 2000 9. 13 9. 05 Aaa 1990 6i,75 6.,75 N.R. 1995 1995 10,.00 9 .00 10,.00 9,.05 1980 1972-90 1995 2000 2000 9 .50 10 .50 9.75 9 .63 9 .75 9 .50 10 .50 9 .75 9 .40 9.70 ' Aa Aa Ba Aa A Aa -- Baa . A Aa A TABLE 6: Large LOIUI term Public Security Issues for New Capital (continm hi (Other than U.S. Treasury)1 As of June 12, 1970 TYPE ISSUER 2 AMOUNT (MILLION'S OF . DOLLARS) COUPON ! i • - i RATE OR • UT.ER- MOODY'S MATURITY 'NET INTERRATING I:.( EST COST 1 V! 1 :^ 1 State and Local ^Atlanta Airport Winchester, Mass. Illinois Bldg. Auth Alabama, State of Delaware State Highway Dept. PuebloXCo. S/D #60 Jefferson Parish, La. Other Federal Home Loan Banks Federal Home Loan Banks * 1 2 3 Rev. G.O. Rev. G.O. Rev. G.O. G.O. , 41.0 12.0 41.7 15.0 17.0 15.0 15.7 1974-2000 1971-1985 1970-1991 1971-1989 2002 1971-85 1971-95 6. 87 6.,69 7.,44 6..96 6,,00 6-00-7. 40 5. 00-6. 70 4. 75-7.,00 4.,85-7,.10 7.,25 5. 10-7.,00 5.,40-7..10 8 .20 8 .40 8 .20 8 .40 8.04 . Baa Baa Aa A-l A A . ' - I Bonds Bonds 300.0 250.0 1972 1973 -- 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 gen« ra I obiigation; '<ev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.-Ut., revenue bonds secured only by income from quasi-uti1ities ; Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by lease payments. Includes foreign government and International Bank for Reconstruction and Development issues ,and non-quaranteed issues by Kederal Agencies. TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)1 As o f June 12, 1970 (continued) ISSUER TYPE AMOUNT (MILLIONS ' OF DOLLARS) . APPROXIMATE DAT" ; OF OFFERING Corporates Appalachian Power Co. New Jersey Bell Telephone Co . Burlington Northern •Dayton Hudson GIG Industries R.C.A. Corp. R.C.A. Corp. *South Carolina Elec.&Gas 00. Consumer Power Co. Pullman Transport Leasing Ca Washington Natural Gas Co. American Airlines Inc. x »/ ; . American Esna Corp. Boston Edison General Foods Corp. General Foods Corp. Louisville Gas & Elec. Co. B-W Acceptance Corp. ITT Continental Baking Co. Commonwealth Edison Co. Carolina Power & Light Co. Baltimore Gas & Elec. Co. Washington Gas Light Co. *Ryder System Inc. Southern Bell Telephone & Telegraph Co. ^Continental Investment Corp. Borg - Warner Corp. Union Tank Car Bonds 70.0 Debs. 100,0 Bds. 60.0 Debs. 25.0 Debs. 25.0 Notes 75.0 S.F. Debs. 75.0 Bds. 30.0 1st Mtge. 60.0 Equip. Trst. Ctfs. 30.0 Bds. 15.0 Equip Trst. 78.5 Ctfs. Debs. . 25-. 0 1st Mtg. 60.0 Debs. 75.0 Notes 50.0 1st Mtg. 20.0 Debs. 35.0 Debs. 40.0 Pref. Stock 100.0 Bds. 50.0 Bds. 40-45.0 1st Mtg. 20.0 Debs. 35.0 June June June June June June June June June 15 16 16 16 16 16 16 16 17 June 17 June 17 June 18 June June June June June June June June June June June June 22 22 22 22 23 24 24 24 24 25 29 30 . June 30 June June Addressograph-Multigraph Corp Ramada Inns . Avco Corp Debs. 150.0 Conv. Debs. 30.0 S.F. Debs. 35.0 Equip. Trst. Certf. 25.0 Debs. 60.0 Debs. 25.0 Conv. Debs. 50.0 ^Beneficial Corp Monogram Industries Debs. Notes June June 75.0 25.0 June June June June TABID,?: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)1 As of June 12, 1970 (continued) ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING Corporates -- Continued 20.0 Gamble-Skogmo, Inc. Cap. Notes Detroit Edison Gen.&Ref. Mtg. 75.0 58.0 Detroit Edison Con. Stk. 15.0 *Beck Industries Debs. Consolidated Natural Gas Co. Debs. 40.0 16.0 Gulf Power Co. Bds. Brooklyn Union Gas Co. 1st Mtg. 30.0 ' *Diamond States Telephone Co. Debs. 15.0 Pacific Power & Light 1st Mtg. 25.0 lst/Mtg. 60.0 Florida Power & Light Co. puget Sound Power & Light Co. Bonj&s 30.0 Kansas-Nebraska Natural Gas Company / Debis. 15.0 ^McDonnell Douglas Corp. 100.0 Notes Western Electric Co. 150.0 Debs. June July July July July July July July July July July 1 1 6 7 8 9 13 14 15 16 July 22 July Sept. 29 TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U.S. Treasury)' As of June 12, 1970 ISSUER TYPE AMOUNT (MILLIONS OF DOLLARS) APPROXIMATE DATE OF OFFERING State and Local *Minneapolis-St. Paul, Minn. Metro Area Utica Community Sch. Dist., Mich , *California, State of Prince Georges County, Md. Houston, Texas Indp. Sch. Dist. *0nondaga Co., N. Y. Richmond, Virginia Alaska, State of Delaware River Port Auth., N.J. *Monroe Co., N. Y. *Maine, State of *Austin ISD, Texas *N.Y. State Hsq. Finance Agency G.O. G.O. Bds. G.O. G.O. G.O. G.O. G.O. Rev. G.O. GLO. G.O. Rev. 42.0 15.5 100.0 35.0 10.0 16.0 27.0 12.9 75.0 11.4 15.3 14.8 87.5 June June June June June June June June June June June June June 15 15 16 16 16 16 17 17 17 23 23 24 24 Massachusetts Bay Transp. Auth. 65.0 June 24 System Rev. June 30 Mississippi Highway 20.0 Bds. Genessee Co., Mich. June Rev. 11.2 June 25.0 Los Angeles, Calif., Parking Auth. Rev. July I 46.8 Maryland, State of . G.O. July 1 23.5 Tulsa, Oklahoma G.O. July 7 Detroit, Mich. 46.0 Rev. July 8 Nassau Co.* N. Y. 43.6 G.O. July 14 15.0 *0aKland Co., Mich. G.O. July 13 50.0 San Francisco BARTS Rev. ^Kentucky 10.0 Aug. 1 G.O. 15.6 Aug. 5 *0akland Co., Mich. Rev. Other 100.0 June 16 Bonds T.V.A. * Included in table for first time. . ^ * 1 Includes corporate and other issues of $15 million and over; State and local Government issues of $10 million and over. 2 Includes•foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues of Federal Agencies. Postponements: State of New York - 60.0 postponed because of market conditions. Pennwalt Corp. - 40.0 postponed because of market conditions. Ingram Corp. - 20.0 postponed because of market conditions. TABLE 8: Stock Prices and Volume STOCK PRICES1 . DATE D.J. - IND. TRADING VOLUME2 AMEX 4 NYSE AMEX 1968 - High - Low 108.37(11/29) 985.21(12/3) 33.24(12/20) 82.1(6/7) 825.13(3/21) 21.97(3/25) 34.0(2/23) 87.72(3/5) 45.4(6/7) 14.1(2/23) 1969 - High Low 106.16(5/14 968.85(5/14) 32.91(1/3) 82.6(10/17) 89.20(7/17) 769.93(12/17) 25.02(7/29) 32.8(4/4) 38.4(5/9) 12.9(4.4) 1970 - High Low 93.46(1/5) 811.31(1/5) 27.02(1/8) 80.7(5/26) 69.29(5/26) 631.16(5/26) 19.36(5/27) 44.6(3/20) 28.4(1/2) 10.3(6/12) 1 8 15 22 29 81.44 79.44 76.90 72.25 76.55 733.63 717.73 702.22 662.17 700.44- 21.99 21.69 21.11 20.06 20.71 56.8 52.9 56.7 59.7 80.7 20.3 17.0 16.1 18.6 27.3 5 12 76.17 74.21 695.03 684.14 20.99 20.72 71.9 39.0 27.4 10.3 1970 - May June 1 Figures other than highs and lows are Fridays only. for the year and are not necessarily for Fridays. 2 1941-43 = 1 0 . 3 Average dollar value of' shares listed. 4 NYSE is the New York Stock Exchange; AMEX is the Total number of shares traded per week (millions normally conducted for 5-1/2 hours per day and 5 per week. In recent years, however, abbreviated over the time periods, shown below: From: Through: August 8, 1967 January 22, 1968 June 30, 1968 January 3, 1969 July 7, 1969 January 2, 1970 August 20, 1967 March 1, 1968 December 31, 1968 July 3, 1969 December 31, 1969 May 1, 1970 Highs and lows are American Stock Exchange. of shares), trading is days per week, or 27-1/2 hours trading to the extent, and Hours/ ' Dav 4 4 5-1/2 4. 4-1/2 5 Days/ Week 5 5 4 5 5 5 Hours/ Week 20 20 22 20 22-1/2 25 15 STOCK PRICES AND TRADING VOLUME AM EX Weekly 1280 128 STOCK PRICES 1200 120 AMEX PRICE LEVEL INDEX 1120 112 1040 104 960 96 880 88 800 80 720 72 Millions of shares 60 A M E X T R A D I N G V O L U M E (TOTAL FOR WEEK) N Y S E T R A D I N G V O L U M E (TOTAL FOR WEEK) 1966 1967 1968 1969 1970 TABLE 9: Security Credit END OF PERIOD CREDIT EXTENDED TO MARGIN CUSTOMERS BY: BROKERS 1 | BANKS 2 | TOTAL CUSTOMERS' NET DEBIT BALANCES NET CREDIT CUSTOMERS' NET EXTENDED B\ FREE CREDIT BROKERS AND DEALERS 3 BALANCES 1969 - Apr. May June July Aug. Sept. Oct. Nov. Dec. 5,570 5,670 5,340 5,170 5,000 4,940 5,040 5,070 4,970 2,760 2,770 2,740 2,700 2,670 2,620 2,570 2,520 2,580 8,330 8,440 8,080 7,870 7,670 7,560 7,610 7,590 7,550 8,044 8,474 8,214 7,515 7,019 7,039 7,243 7,111 7,445 3,077 3,084 3,085 2,783 2,577 2,579 2,753 2,613 2,803 4,967 5,390, 5,129 4,732 4,442 4,460 4,490 4,498 4,642 1970 - Jan. Feb.r/ Mar.r/ Apr .£/ Change in Outstanding; 4,680 4,570 4,520 4,380 2,430 2,370 2,370 2,330 7,110 6,940 6,890 6,710 6,683 6,562 6,353 5,970 2,626 2,463 2,441 2,246 4,057 4,099 3,912 3,724 -20 10 -30 -40 -30 -50 -50 -50 60 -40 110 -360 -210 -200 -110 50 -20 -40 -274 430 -260 -699 -496 20 204 -132 334 -271 7 . 1 -302 -206 2 174 -140 190 -57 423 -261 -397 -290 18 30 8 144 -150 -40 -440 -170 -50 -180 -762 -121 -209 -383 -177 -163 -22 -195 -585 42 -187 -188 1969 - Apr. May June July Aug. Sept. Oct. Nov. Dec. 1970 - Jan. Feb.r/ Mar.r/ Apr.]*/ 1 2 3 -20 100 -330 -170 -170 , -60 100 30 -100 -290 -110 -50 -140 — -40 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) . MUTUAL SAVINGS BANKS SAVINGS < 5c LOAN ASSOCIATIONS REGULAR DEPOSITS 3 NET SHARE CAPITAL NET ANNUAL NEW'' ANNUAL NEW MONEY2 NET GROWTH NET . GROWTH MONEY2 1 1 FLOW RATE FLOW RATE DATE 1967 1968 1969 5,082 4,208 2,551 1969 - Mar. Apr. May 642 -197 308 1970 - Mar. Apr. May £/ 510 - 6 300 . Not Seasonally Adjusted 10,649 9.4 , 6,129 7,399 6.0 2,738 4,020 3.1 -1,003 9.3 7.1 4.0 2,376 1,143 - 747 - - 81 - 325 227 1,370 - 516 642 - 88 - 136 200 1,655 234 900 -— - - __ -• -__ • —— - - . TOTAL DEPOSITS ANNUAL NET GROWTH RATE 1 FLOW 15,731 11>607 6,371 479 - 543 601 2,012 - 713 949 554 253 n. a. 2,165 228 1,200 9.4 6.3 3.4 __ __ - __ - - • NE1 NEW ' MONEY 2 8,505 3,882 -1,749 560 868 828 466 117 n. a. Seasonally Adjusted 1969 - Dec. 1970 - Jan. Feb. Mar. Apr. £/ May •/ 1 2 229 4.1 —— 47 0.4 -117 298 244 359 334 -2.1 5.4 , 4.4 6.4 6.0 —- -754 247 1,021 1,000 784 -6.7 2.2 9.1 8.9 6.9 -—— -— • —— 276 - 871 545 1,265 1,359 1.3 -5.2 3.3 7.5 8.1 - - 1,118 6.6 . - - Annual growth rate for monthly, data is the annualized monthly percentage increase in deposits. Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for . insured associations only, which represent 96% of industry, total resources. 3 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. . ' 19 SAVINGS FLOWS (seasonally adjusted) Monthly M i l l i o n s of d o l ' a r s 2000 1600 1200 800 400 400 SAVINGS & LOANS - : ! MUTUAL SAVINGS BANKS - - 1 1966 1 1967 1 I 1 1 II 1 1 1 1 1 1 1 1 1 1 1 1968 1969 1970 II V/ TABLE 11: Mortgage Commitments at Selected. Thrift Institutions 1 DATE TOTAL 10.3 1969 - Mar. 10.5 Apr. May 10.4 10.2 June July 9.9 Aug. 9.5 Sept. 9.2 Oct. 8.9 8.6 Nov. , Dec. 8.4 1970 - Jan. Feb. Mar. OUTSTANDING COMMITMENTS | . NET CHANGE ALL MUTUAL ALL SAVINGS TOTAL SAVINGS & SAVINGS & ' BANKS LOAN LOAN (N.Y. STATE) ASSOCIATIONS ASSOCIATIONS (Billions of Dollars, Seasonally Adjusted) \f 7.0 7.2 7.1 7.0 6.8 6.5 . 6.4 6.1 5,9 5.8 3.3 3.3 3.2 3.2 3.1 3.0 2.8 2.7 2.7 2.6 .18 . .15 -.11 -.18 -.32 -.36 -.31 -.33 -.24 -.25 .12 . 14 -.06 -.11 -.22 -.24 -.18 .23 -.18 -.12 5.6 5.4 5.2 2.6 2.5 2.5 -.17 -.31 -.22 -.23 -.17 8.2 7.9 7.9 MUTUAL SAVINGS BANKS (N.Y. STATE) , I 1 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. .06 .02 -.05 -.06 -.10 -.12 -.13 -.09 -.06 -.13 .04 -.07 -.02 MORTGAGE COMMITMENTS OUTSTANDING (seasonally adjusted) Monthly Billions of dollars TOTAL S&L'S N Y. MSB'S Includes building loans beginning August 1967 1960 1962 1964 1966 1968 1970 TABLE 12: Net Change in Mortgage Holdings FINANCIAL INCLUDING DATE 15,874 18,191 21,319 19,110 4,705 4,639 6,677 5,152 1969 - Jan. Feb. Mar. 1,701 1,750 1,964 1,500 1,529 1,759 451 480 519 1970 - Jan. Feb. Mar. Apr. 1,091 1,149 n. a. n. a. 487 616 n. a. n. a. 100 100 0 200 1969" - Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 2,202 2,099 2,117 2,032 2,153 1,698 1,910 1,876 1,734 1,652 1,906 2,025 1,906 1,910 1,808 1,875 1,364 1,380 1,365 1,166 1,069 1,292 668 632 567 534 440 151 310 383 244 237 347 1970 - Jan. Feb. Mar. Apr. 1,493 1,604 n. a. n. a. 937 1,105 n. a. n. a. 288 285 114 141 to . Call derived Report from "of Mutual and, after Savings through on real debt Banks, August estate Federal 1968, the the Government savings banks and for Life derived from regular adjustments accounted for 87 are per cent made of 3,761 7,520 9,350 9,407 4,648 2,914 2,496 2,056 2,323 1,797 2,508 4,375 293 228 198 622 671 917 134 150 125 201 221 205 213 187 n. a. n. a. 604 533 529 477 207 159 194 169 183 173 193 191 171 139 134 177 193 207 224 278 334 530 511 568 583 614 225 241 n. a. n. a. 556 499 516 494 •- 400 436 276 387 24 143 197 205 loans Home outstanding as Loan National Insurance quarterly not 2,760 3,118 2,796 2,495 reported Bank Federal' N a t i o n a l and Board, Mortgage Mortgage companies may by because minor increase*estimated Other of Life Association, Data somewhat conceptual Altogether, for all data National Institute differ m o n t h l y .series. net of available. Association. in the as separately series the COMPANIES 38 136 106 223 153 317 160 517 Seasonally Adjusted 266 884 230 875 899 240 251 854 230 1,022 859 181 720 157 654 137 627 124 146 547 576 235 outstanding FNMA which by data mortgage INSURANCE ASSOC. BANKS Not Seasonally Adjusted ' LIFE & LOAN 1 BANKS 18,197 19,988 23,827 . 23,485 SAVINGS SAVINGS COMMERCIAL TOTAL FNMA-GN MA 1966 1967 1968 1969 INSTITUTIONS MUTUAL TOTAL Assn. Insurance and there- for from mutual those differences these holders for groups in 1967. 23 NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted) Monthly Billions of dollars 3.0 2.5 TOTAL, INCL. FNMA - GNMA 2.0 FINANCIAL INSTITUTIONS 1.5 1.0 1967 1968 1969 1970 TABLE 13: Net Increases in Mortgage Debt Outstanding Billions * QUARTER 1966 . - Ij>/ IT . Ill IV TOTAL RESIDENTIAL3 of dollars, SAAR 1- to 4- MULTIFAMILY . FAMILY 1 - COMMERCIAL .MULTI-AND COMMERCIAL FARM 28.5 24.3 18.7 15.2 19,2 15.6 11.0 9.2 14.8 12.1 8.4 7.0 4.4 3.6 2.6 2.1 6.9 6.5 5.5 4.2 11.6 10.1 8.2 6.2 2.4 2.2 2.2 1.8 1967 .- 12/ 15.6 H p 20.5 III|> 27.0 IVp 27.5 10.0 13.8 19.6 19.9 6.8 10.5 15.7 16.0 3.2 3.4 3.9 3.9 3.8 4.9 ; 4.9 4.9 7.2 8.2 8.7 8.8 1.8 1.8 2.5 2.7 1968 - ip/ 27.1 H p 25.9 III!, 26.5 IVp 30.1 18.4 18.0 18.2 20.5 15.4 14.8 14.6 16.5 3.0 3.2 3.5 4.0 6.3 5.7 6.5 7.8 9.4 8.9 10.1 11.7 2.3 2.2 1.8 1.8 1969. - ip/ 30.4 IIP 28.5 - m i > 26.4 IVp 24.0 22.1 21.2 19.8 16.9 17.9 16.5 15.1 13.0 4.2 4.7 4.6 3.9 6.1 5.0 4.6 5.1 10.3 9.6 9.1 9.0 2.2 2.3 2.0 1.9 1 ^ 2 • Derived from data on mortgage debt outstanding from Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, Institute of Life Insurance, National Association of Mutual Savings Banks, Departments of Commerce and Agriculture, Federal National Mortgage Association^ Federal Housing Administration, Veterans Administration and Comptroller of the Currency. Separation of non-farm mortgage debt by type of property, where not available,, and interpolations and extrapolations, where required, estimated by Federal Home Loan Bank Board and the Federal Reserve. Residential mortgage debt includes nonfarm only and is sum of 1-to 4-family and multifamily mortgage debt combined. NET INCREASES Quarterly IN MORTGAGE DEBT OUTSTANDING Billions of dollars, seasonally adjusted a n » - TOTAL 24 TOTAL RESIDENTIAL 1-4 FAMILY COMMERCIAL MULTIFAMILY 1966 1968 1970 TABLE 14: FNMA Weekly "Auction" Results COMMITMENTS IN $•MILLIONS IMPLICIT YIELD2(per cent) ACCEPTED WEEK . TOTAL 90TOTAL 9061-YEAR'1 1-YEAR 1 6OFFERED ENDED DAY MONTH & OVER & OVER DAY MONTH 1970 - Mar. 23 Apr. 6 20 5 11 18 25 May 354.6 395.4 ,268.4 315.7 i 443.3 269.2 300.3 289.5 224.2 June 276.4 239.0 60.7 47.5 136.5 124.5 79.2 67.0 9.16 9.12 I 9.19 9.14 9.13 9.12 9.07 9.04 9.10 9.10 190.2 185.2 41.0 54.0 121.4 98.2 27.8 33.1 9.05 9.02 195.5 102.2 136.3 145.2 43.5 26.0 32.4 38.9 121.1 63.2 86.4 86.7 38.9 13.0 17.5 19.7 9.01 9.04 9.11 9.15 9.04 9.07 9.13 9.18 9.10 9.13 9.18 9.22 113.8 31.1 (300.06 71.4 11.3 9.20 •9.24 9.27 Note: Under the FNMA auctiori 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 of 15 years for 30-year Government-underwritten mortgages. Yields shown are gross, before deduction of 50 basis points fee paid by investors to servicers. 3 FNMA announced limit of accepted bids for next week's auction. 27 FNMA "AUCTION" RESULTS $ Millions 200 AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD 150 - i 6 MONTHS 100 1 YEAR AND OVER I V v 50 \ | 3 MONTHS M a 1 v I I I i l l ' I i i i 0 i IMPLICIT YIELD 6 - M O N T H COMMITMENTS 10 $ Millions TOTAL BIDS RECEIVED TOTAL BIDS ACCEPTED JUNE AUG. OCT. 1969 DEC. FEB. APR. JUNE 1970 AUG. OCT. DEC. TABLE 15: Private Housing Starts and Permits STARTS DATE SEASONALLY ADJUSTED ANNUAL RATE TOTAL 1-FAMILY 2 OR MORE 9 - Apr. May June July Aug. Sept. Oct. Nov. Dec. 1,505 1,533 1,507 1,429 1,376 1,481 1,390 1,280 1,402 797 877 826 803 752 828 766 762 776 0 - Jan. Feb. Mar. Apr. 1,059 1,306 1,384 1,181 577 725 702 693 708 . 656 681 626 - 624 653 624 518 626 482 581 682 488 TOTAL UNADJUSTED TYP E OF FINANCING ' FHA VA OTHER 159.0 155.5 147.3 125.2 124.9 129.3 123.4 94.6 84.1 23.0 21.1 21.5 20.8 22.4 18.3 25.1 18.8 23.2 4.4 4.3 4.6 4.7 4.2 4.8 5.0 3.9 4.2 131.6 130.1 121.2 99.7 98.3 106.2 93.3 74.7 57.9 66.4 74.3 U3.9 123.8 16.5 17.5 25.2 32.4 3.4 3.9 4.8 5.4 46.5 52.9 83.9 86.0 BUILDIN. PERMITS (SEASONALLY ADJUSTED ANNUAL RATE)2 1,502 1,323 1,340 1,228 . 1,245 1,201 1,183 1,191 1,239 1,013 1,137 1,099 1,249 Total starts are Census estimates including farm for both permit-issuing and nou-issuing areas. A dwelling unit is started when excavation begins; all units in an apartment structure are considered started at that time. FHA and VA starts are units started under commitments by these agencies to insure or guarantee the. mortgages. As reported by FHA and VA, a unit is started when a field office receives the first compliance inspection report, which is made before footings are poured in some cases but normally after the foundations have been - completed. Other starts are derived as a. residual, although total and FHA and VA starts are not strictly comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages. 2 . Building permits before January 1963 are Census estimates for about 10,000 areas identified as having a local building permit system in 1959. Estimates beginning January 1963 are for approximately 12,000 and beginning January 1967 13,000, or all known permit-issuing places. Unlike starts, seasonally adjusted building permits reflect direct adjustment for differences in the number of working days per month, as"well as other differences in timing and coverage. 1 PRIVATE HOUSING STARTS AND PERMITS Monthly, annual rates Millions of units SEASONALLY ADJUSTED 2.0 HOUSING STARTS 1.2 BUILDING PERMITS (in issuing areas) •CHANGE IN SERIES PER CENT OF UNADJUSTED TOTAL STARTS MULTI-FAMILY GOVERNMENT UNDERWRITTEN 1964 1966 1968 1970 1 TABLE 16: Mortgage and Bond Yields FHA MORTGAGES CONVENSPREAD BETIONAL TWEEN YIELDS ON CONV. & MORT-. 25-YEAR 30-YEAR GAGES • FHA MORT3 GAGES • DATE NEW Aaa CORPORATE BONDS 4 SPREAD BET-V YIELDS ON NEW CORPORATE BONDS AND FHA MORTGAGES .23 .25 .30 ,11 -.12 .12 -.27 i-40 .13 5.25 4.41 5.82 6.51 5.18 6.79 6.15 8.75 6.91 1.69 .77 1.16 1.28 .27 1.20 .26 1.08 -.13 2 1959-60 - High 1961-66 - Low 1966 - High 1967 - High Low 1968 - High Low 1969 - High Low 6.26 5.43 6.73 n. a. n. a. n. a. n. a. n. a. n. a. 5.44 6.81 6.81 6.2.9 7.52 6.78 8.62 7.99 6.30 5.80 6.70 6.70 6.40 7.40 6.75 8.35 7.55 1969 - Dec. n. a. 8.62 8.35 -.27 8.75 -.13 1970 n. a. n. a. n. a. n. a. 9.29 9.20 9.10 8.55 8.55 8.55 8.55 -.74 -.65 -.55 8.46 8.30 8.60 8.60 .99 .60 .50 1 Jan. Feb. Mar. Apr. Neither much mortgage higher annually; a for nor mortgages, semi-annual bond mortgages yields than monthly. interest include for Based Mortgage investment, FHA-field-office 15 by compared, Based be indicate that gages. note of if servicing bonds computed slightly date, Dashed for line Table with rate the two pay as costs which interest than.given prices in are semi- equivalent higher of on 1960, related to this typical in 12 to in the the to changes market rate relates both new change in as the for for series interest only mortgages in they been of (rounded) insuring to n e w - h o m e as series\ can he similar. contractual rates with Yields 25-year-mortgages which has areas well private Separate transactions. years period yield adjustment prevailing April of the of the delivery. 1961--30-year volume period Over bid immediate July mortgage opinion indicates 1. average for probable prepayment periods mortgages Beginning to by mortgages. FHA-field-office cities. about mortgages and--beginning weighted 30-year prior See 25-year movement first opinions new-home assuming for the lines on ventional 4 for FHA, years Dashed for downpayments, computed 3 market available minimum and yields, would for Generally, ' on secondary data allowance bonds. . table. 2 - interest on con- office mortgages; existing-home mort- - MORTGAGE AND BOND YIELDS Monthly Percent 11 HOME MORTGAGES: CONVENTIONAL FHA Aaa CORPORATE BONDS: NEW ISSUES _ ^ Y I E L D S P R E A D ( F H A MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS) Basis Points 200 100 100 1962 1964 1966 1968 1970 TABLE 17 Conventional Mortgage Terms NEW HOMES CON- FEES & TRACT CHARGES EFFEC- MATURITY RATE (PER TIVE (YEARS) (PER CENT) RATE CENT) 2 3 June 7.47 7.50 7.62 0.96 0 0.84 Nov. Dec. 07 1.06 EXISTING HOMES CON- FEES & LOAN/ LOAN/ TRACT CHARGES EFFEC- MATU- PRICE PRICE LOAN RATIO AMT. RATE (PER TIVE RITY RATIO (PER ($000) (PER CENT) RATE (YEARS) (PER CENT) CENT) CENT) 4 3 .08 0.90 0.93 8.24 22.9 8.p 8.23 8.26 8.20 0.94 1.02 0.98 0.90 8.29 8.41 8.43 8.35 22.4 70.3 22.4 70.2 22.6 70.4r 22.8 70.4 70.6 LOAN AMT. ($000) 4 20. 1970 Jan. Feb. Mar. r/ . Apr . 1 1 . 1 8.23 8.29 8.23 6 1.08 1.09 lVll 1.02 .34 .41 .47 .40 25.0 •25.2 25.0 24.8 69.3 71.8 71.1 71.1 25,1 24.9 25.1 24.5 20.5 20.4 20.6 20.4 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 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 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-i.n 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 ar% 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 fn addition to the contract interest rate. 4 Derived by FRB. CONVENTIONAL MORTGAGE TERMS Monthly Yea 30 MATURITY NEW 25 EXISTING 20 80 LOAN/PRICE RATIO NEW EXISTING 70 iIii i i i i i i I 65 Thousands of dollars LOAN AMOUNT NEW EXISTING 1964 1966 1968 1970 * CHANGE IN SERIES