Full text of H.16 Capital Market Developments : April 21, 1969

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™=™
L.5.8 Confidential (F.R.)
LIBRARY
A P R 2 3 1969
FEDERAL RESERVE BANK
OF R I C H M O * ®

CAPITAL
MARKET
DEVELOPMENTS

C a p i t a l Markets Section, Division of Research and Statistics,
Board of Governors of the Federal Reserve System, Washington, D. C.




Apr. 21, 1969

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




TABLE 1: Yields, Volume and Reception
YIELDS
W E E K ENDING:
NEW I S S U E 1
1969 - M a r .

Apr.

7
1421
28
4
11

6.72
6.75
6.94
6.99
6.99

r/7.22
"" 7.57
r/7.36
7.28
7.30
7.02

6.97
6.88
n.a.

160
230
226
... 185
196

525
573
813
513
635
r/548
437

50
25
100
97
90

307
176
365e

100
95

i
i

18
25 e/

MOODY'S Aaa

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

MUNICIPAL E

VOLUME 2

YIELDS
W E E K ENDING:
MOODY'S
Aaa
1969 - Mar.

Apr.

7
14
21
28
4
11
18;

4.90
4.92
5.02
5.02
5.00
5.08.:
5.00

25ey

BOND BUYER
20 BOND INDEX
5.19
5.26
5.29
5.30
5.25
5.29
5.13

GROSS
OFFERINGS
94
88
112
154
280
420
328
450 e

PER CENT
SOLD BY END
OF WEEK

BONDS SCHEDULED
WITHIN 28 DAYS

75
90
83
84

408
575
741
849

79
87
69

,

V

969
791
705

;

l Derived by adjusting to an Aap 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,
n. a.-- Not available.




TABLE 2: Details on Inventories
CORPORATE BONDS IN SYNDICATE EMD OF LATEST W E E K
ORIGINAL
RATING A N D
'
• . I
- '
YIELD CALL PROTECTION
COUPON
ISSUER 7

AMOUNT
(MIL. $)

DATE
,
OFFERED
4/15

15.0

Public Service of Mew Mexico

7.25

7.30

A

4/2

25.0

Hudson Bay Oil & Gas

7.85

7.85

A

y.

'

/

'

5 yrs
5 yrs.

ESTIMATED PROPORTION SOLD
60%
98%

/

.

\
x

DATE
OFFERED
| RELEASED

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST W E E K
ORIGINAL INCREASE RATING A N D ESTIMATED PROCOUPON
AMOUNT
ISSUER
IN YIELD CALL PROT. PORTION RELEASED
YIELD

NONE

DATE
1969 - Mar. 21
28
Apr. 4
11
18£/
N.C. - No call protection,

others as of Friday;



INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE .
400
356
356
r/407
394

83
68
106
123
135

p Daily average of three days ended Wednesday.
in millions of dollars.
Estimated.

CORPORATES
IN SYNDICATE
0
5
17
15
9e

V Blue List is daily average;

BONDS IN SYNDICATE
Millions of dollars
CORPORATE B O N D S IN S Y N D I C A T E

200
100

T

i
i
r~~j
i
i
r
i
i
r
MUNICIPAL B O N D S IN S Y N D I C A T E

T

T

i — i — ! — r

300

200
100

SEPT.

DEC.

67




MAR.

JUN.

1968

\

SEPT.

DEC.

MAR.

f

—"

JUN.

1969

SEPT.

DEC.

TABLE 3: High Grade Bond Yields

NEW CORPORATE
•MOODY'S SEASONED
CORPORATE
ISSUES(ADJUSTED
Aaa1
TO Aaa BASIS)

DATE

U.S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 2

SEASONED
STATE AND LOCAL
GOVERNMENT
Aaa3

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(1/27)
5.95(9/13)

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

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

7.57
7.37

6.94
6.99
6.99
6.97
6.88

6.27
6.22
6.17
6.11
5.97

5.02
5.02
5.00
5.08
5.00

1969 - Mar.
Apr.

21
28
3
11
18£/

7.28
7.32
7.02

Preliminary.
Weekly average of daily figures. Average term of bonds included is 22-24 years.
Weekly average of daily figures.
Thursday figures. Only general obligation bonds are included; average term is 20
years.
SOURCE: MOODY'S INVESTORS SERVICE
Note--Highs and lows are for individual series and may be on different dates for different series.

p
V
2
3




HIGH GRADE BOND YIELDS

NEW CORPORATE Aaa K

f

MOODY'S
^
CORPORATE Aaa

U S. GOVT. 20-YR.
CONSTANT MATURITIES

MOODY'S MUNICIPAL Aaa

1965




1966

1967

1968

1969

TABLE 4: Long:term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
NEW CAPITAL
1

PERIOD

STATE AND LOCAL 2 -

CORPORATE
1969p

1968

1967

1969 p

1968

1967

January
February
March

2,000e/
1,8751/
l,950e/

1,706
1,568
1,740

1,648
1,398
2,317

1,237
973

1,138
1,156
1,394

1,482
1,196
1,438

April
% y
June "

l,925e/
2,300e/

1,385
1,825
2,334

1,973
1,474
2,611

1,475

1,314
1,396

1,111
1,229
1,497

2,091
1,394
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
2,336

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

10,558
15,540
21,365e/

11,421
18,007
24,098

8,925
12,127
16,463

7,956
11,087
14,643

-

July
August
September
October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

5,825e/

525

900e/

.2,335

1,140

|
i
|

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

Quarter
Quarter
Quarter
Quarter

4,943
5,265
4,882

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

Year

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.




1

T A B L E 5: New Corporate Security Issues, Type of Issue and Issuer
(In millions of dollars)

QUARTER
OR
MONTH .

6,833
6,294
5,178
5,705
5,133
3,951

1967 - I I I
IV
1968 - I
I I
I I I
IV
1969 - I e /

5,937

1,800

1968 - M a r .
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969

Jan.
Feb..
Mar.

TOTAL

1,428
1,867
2,418
2,144
1,433
1,556
2,129
1,767
2,055

2,022

£/

1,910
2,005

GROSS PROCEEDS FOR NEW CAPITAL
A N D REFUNDING T
COMMON
MEMO:
AND
ISSUES INCLUDED
MFG.
PUBLICLY PRIVATELY PFD.
FOREIGN
CONVERTIBLE
STOCK
PLACED
OFFERED
4,604
3,107
2,465
3,105
2,606
2,555
2,593

1,551
2,137
1,724
1,644
1,361
1,922
1,791

678
1,051
989
956
1,166
1,474
1,553

766
719
1,046
1,340
1,244
637
725

593
438
521
685
528
400
433

441
271
300
385
372
396
398

1,000

595
362
965
591
550 .
650

525
466
483
453
550

939
607
978
810
805

550

234
93
313
172
124
113
n. a .

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

NET PROCEEDS
FOR NEW CAPITAL
PUBLIC
UTILITY

1 2

COMMUNICATIONS

OTHER
ISSUES

1,632
1,327
584
758
1,037
902
n.a.

2,792
2,527
1,855
1,653
1,599
e/1,675
1,575

1,219
1,255
1,394
1,201
1,143

595
269
411
529
483

1,976
2,040
1,356
2,159
1,758

e/1,385
1,320

e/305
410

e/2»460
2,520

199
139
380
239
605
211
221

761
353
550
750
818
349
432

431
178
549
474
236
438
469

78
189
103
237
236
92
155

469
663
622
874
801
515
442

e/665
s/110
£'410
Pl55
Si! 3 1 0 e/40
e/ 575 e/ 150
1/325 "e/60
200
420

e/700
e/750
•Al,010
e/ 775
IV815
930

365
211
326
371.

±(625
e/410
*/640
e/ 5 0 0
i/675
e/400

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 tran'sporation,
real estate, and finance, and commercial and other. SOURCE: Securities and Exchange Commission.
Quarterly supplements ape available.




TABLE'S: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury)
ADril 1 t hrout?h Aoril

ISSUER
Corporate
Public Service Elec. &
Gas Company
^Continental Airlines, Inc.
l&Tdiflc Tel. and Tel. Co.
*Security National Bank
Marine Midland Banks
Southern Calif. Edison Co.
Mortgage Investment Group
Union Tank Car Co.
*Dayton Power & Light Co.
Sybron Corp
Dillingham Corp.
Continental Computer Assoicf.
Texas Power & Light Co.
Texas Power & Light Co.
Commonwealth Edison Co.
Florida Gas Co.
Pacific Gas & Elec. Co.
*Northwest Airlines
Inland Steel Co.
General Tele. Co.of,Mich.
Public Service Co.of N.Mex
Wisconsin Pub. Service Co.
Maryland Cup Corp
Rochester Gas & Elec. Corp




TYPE2

AMOUNT
(MILLIONS
OF
DOLLARS)

1st & ref.
mtg. bds.
75.0
21.6
Com. stk
Com. stk.
15.3
17.3
Com. stk
60.0
Debs.
54.4
Com. stk
45.0
Units
Equip, tr.
20.0
ctfs.
Cum; pfd .stk. 15.3
S. F. Debs.
30.0
Conv.jub.debs.50.0
Conv.sub.debs.15.0
S. E. debs. ^ 20.0
Pfd. stk.
30.0
1st mtg. bds. 75.0
Conv. debs.
15.0
1st mtg. bds. 80.0
Com. stk.
79.7
1st mtg.. bds. 50.0
22.0
Debs.
1st mtg,. bds. 15.0
1st mtg . bds. 25.0
Conv. debs.
15.0
Pfd. stk.
20.0

MATURITY

COUPON;
. RATE OR*
NET INTEREST COST

OFFERING
YIELD

MOODY'S
RATING

Aa

1999

7-5/8

7.50

1994

7-5/8

7.67

. —

1989

7-5/8

7.87

A

1994

7-1/2
5-1/2
6-1/2
7-3/4

7,64
5.50
6.50
7.65

A

1994
1989
1994

Aa

1974
1989
2001

7.30
5-3/4
7-1/2

7.30
5.75
7.45

Aaa
B
Aa

1974,
1994
1999
1999
1994

7.00
7-3/4
7-1/4
7-1/4
5-1/8

7.00
7.77
7.30
7.30
5.13

Aa
Baa
A
A
Ba

B
—

'

TABLE 6: Large Long-term Public Security Issues for New Capital
(Other than U.S. Treasury)
April 1 through April 18, 1969

ISSUER

'•

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

COUPON
RATE OR
NET INTEREST COST

OFFERING
YIELD

MOODY1S
RATING

State & local Government
Calif. Dept. of Water
Resources
Calif. Dept. of Water
Resources
Calif. Dept. of Water
Resources
Memphis,; Tenn.
Tucson Comm. Center Auth.,
Arizona
State of Virginia
N e w Haven Coliseum Auth.,
Connecticut
Port of Oakland, Calif.
Chicago^ Illinois
Commonwealth of Penna.
Kansas City, Kansas
Massachusetts Port
Authority
Essex Co., N e w Jersey
^ Massachusetts Port Auth.
R h o d e Island, State of
Washington Sub. San. Dist.
Maryland
New York, New York
Fla. State B d . of Educatior
San Francisco BART
Atlanta, Ga.




5. 75

A-l

5.63

A-l

Rev. -Ut.

72.1

2018

5-3/4

Rev. -Ut.

12.3

a

1998

5-5/8

1972-88
1970-94

5.76
5.08

4.50-5.45
4.15-5.45

A-l
Aa

12.3

1973-99
1971-84

5.96
4.65

4.75-6.00
4.10-4.70

Aaa

10.0

1975-2009
1971-95
1972-84
1970-98
1970-89

5.78
6.14
5.13
5.62
5.27

4.70-5.80
5.00-6.10
4.60-5.30
4.30-5.80
4.30-5.60

Aa
Baa
A-l
A-l
Aa

58.9

2008

5-7/8
5.12
5.20

5.87
4.20-5.30
4.75-5.30
4.30-5.35

Aa
-A-l

5.39^
5.57
5.42
5.27
5.64

4.30-6.00
4.60-5.75
4.20-5.60
4.25-5.60
4.40-5.75

A
Baa-1
Aa
Aa
Baa

Rev.-Ut.
G. 0.
Rev.
G.O.
Rev.
Bonds
G.O.
G.O.
Rev.
Rev. -Rent.
G.O.
Rev. -Rent.
G.O.
G.O.
G.O.
Rev.
G.O.
Rev.

81.0
1915

11.0
28.0

116.8

16.0
3.1
19.0
23.0
111.1
39.0
70.0

18.0

1970-94
1972-79
1970-89
1970-98
1970-98
1960-98
1972-99
1971-2000

TABLE 6: Large Long-term Public Security Issues for New Capital (continued)
(Other than U.S. Treasury)1
April 1 through 18, 1969

TYPE 1

ISSUER

Other

AMOUNT
(MILLIONS
OF
DOLLARS)

MATURITY

\

COUPON
RATE OR
N E T INTEREST COST

1

OFFERING
YIELD

MOODY'S
RATING

2/

Hudson's Bay Oil & Gas
Go. Ltd. (Canada)
Federal Land Banks

C o l l . t r . bds.
Consol. farm
loan bds.

25.0

1994

7.85

7.85

181.0

1971

6.80

6.80

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 arid non-guaranteed issues by Federal Agencies.
In case of State and local government securities, G.0. 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 specifib taxes only; Rev.-Rent., revenue
bonds secured solely by lease payments.
$3 m i l l i o n of this issue had a net interest cost of 5.51%. .




TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury)1
As of April 18. 1969.

TYPE

ISSUER
•

i

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporate
Seaboard Finance! Corp.
Chrysler Financial Corp.
Tenneco, Inc.
|
*Chelsea Industries^Inc.
Sunshine Mining
j
j
Fruehauf Corp.
Host International Inc.
Potomac Edison Co.
Massachusetts Elec. Co.
Amfac Inc.
^United Virginia Bancshares
Inc.
Delmarva Pwr. & Lt., Co.
Teledyne Inc.
Columbus & Southern Ohio
Elec. Co.
Union Electric Co.
Mid-Contrinent Realty
Corporation
C.& P. Tele. Co. of West
Virginia
Cincinnati Gas & Electric
Company
Wisconsin Elec. Pwr. Co.
Kentucky Utilities Co.
*Pacific Pwr. & Lt. Co.
*Pennsylvania Electric Co.
^American Enka Corporation
Houston Lighting & Power Ca
Jersey Central Power & Lt.
Co.
*5outhern New England Tele.
Company
Long Island Lighting Co.
Virginia Electric & Power
Company
Consumers Power Company
Consumers Power Company
Florida Power & Light Co.
Illinois^ Bell Tele. Co.
Beneficial Finance
Household Finance Corp.
• Hoener Waldorf Corporation
*Burroughs Corporation




30.0
100.0
100.0
60.1
25.0
75.0
20.0
15.0
15.0
35.0

April
April
April
April
April
April
April
April
April
April

21
21
21
21
22
22
23
23
24
29

Conv. debs.
Pfd. stk
Debs.

30.0
20.0
30.0

April
April
April

30

Debs.
1st mtg. bds.

25.0
70.0

May
May

Debs.
Debs.
Debs.
Conv.
Conv.
Conv.
Conv.

w/w.
debs.
sub. debs.
debs.
debs.
1st mtg. bds.
1st mtg. bds.
Conv. debs.

1
5

Conv. debs.

16.0

May

5

Debs.

40.0

May

6

1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Conv. debs.
1st mtg. bds.

50.0
40.0
25.0
25.0
28.0
45.0
40.0

May
May
May
May
May
May
May

13
14
19
20
21
22(rts.exp,
22

1st mtg. bds.

33.0

May

26

Debs.
1st mtg. bds.

65.0
40.0

May
May

27
28

1st mtg. bds.
Pfd. stk.
1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Debs.
Bonds
Conv. debs.
Conv. debs.

75.0
35.0
50.0
50.0
150.0
50.0
50.0
30.0
100.0

June
3
June
4
June
4
June
12
June
17
Indefinite
Indefinite
Indefinite
Indefinite

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

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

State 5c local Government
Tallahasse, Florida
Boulder Valley Sch. Dist.
#R-2, Colorado
Ohio, State of
Fhila. Sch. Dist., Pa
Indianapolis San. Dist.,
Indiana
Phoenix Civic Plaza.Bldg.
Corp., Arizona
Georgia Education Auth./
Baltimore Co., Maryland
*Oregon, State of
Delaware River Port Auth.,
New Jersey .
Genesee Co., M i c h i g a n
Suffolk Co., New Jersey
Penna. State Pub. Sch.
Building, Authority
New Y o r k State Housing
Finance Agency
Hawaii, State of
Lancaster Area Swr.Auth.,
Pennsylvania
*Denver, Colorado
*Madison, W i s c o n s i n
*Winston-Salem, N. C.
Los Angeles Dept. of Wtr.
& Power
King Co., Washington
Minnesota, State of
Richmond Metro. Auth.
Cobb Co., Georgia
Arlington Co., Virginia

Rev.

19.0

April

21

G.O.
G.O.
G.O.

10.0
45.0
30.0

April
April
April

22
22
22

G.O.

14.3

April

22

Rev.
G.O.
G.O.
G.0._

18.0
22.0
18.0
30.0

April
April
April
April

22
22
23
23

Rev.
G.O.
G.O.

140.0
30.7
15.5

April
April
April

23
24
24

Bonds

25.7

April

29

Rev.-Rent.
Rev.

60.0
30.0

April
April

30

19.0
35.0
12.0
12.0

April
May
May
May

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

,

.

7
8
8

May
28
June
17
Indefinite
Indefinite
Indefinite
Indefinite

20.0
50.0

April 23
Indefinite

'

i
o

39.0
33,5
33.8
100.0
37.0
13.0

Neon Products of Canada,
Ltd.
*Quebec, Province of

If
2/

Conv. debs.*
Debs.

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.




TABLE 8: Stock Prices and Volume
TRADING1 V O L U M E 2

STOCK PRICES 1
DATE

S&P,
500

D.J. - IND.

AMEX4

NYSE

AMEX

1966 - High
Low,

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

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

17.00(4.21)
12.07(10/7)

10.7(4/15)
5.0(9/23)

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

1967 - High
Low

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

943.08(9/25)
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(12/24
22.00(3/22)

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

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

1969 - Mar. 7
14
21
.
28

98.65
98.00
99.63
101.51

911.18
904.28
920.00
935.48

29.61
29.48
30.00
30.53

9.9
9.2
10.0
10.7

4.5
3.8
4.3
5.0

100.68
Apr. 3
101.65
11
18p /101.24

927.30

30.25

10.9

933.46
924.82

30.31
30.06

10.8

p
1
2
3
4

;

4.3
5.o

9.7
4.6
Preliminary.
Figuresi 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 N e w York and American Stock Exchanges.
Millions of shares.
1941-43 = 10
Based on actual dollar value, rather than a formula.




STOCK PRICES AND TRADING VOLUME
AM EX

. Weekly

STOCK PRICES

AMEX PRICE LEVEL INDEX

S&P's 5 0 0

AMEX TRADING VOLUME

•

,1,

|J

H !!#:V
- N Y S E TRADING VOLUME

i Mi'ljl'ii li

lliiiiil;!'!/':.!:,,!!
•I I! I • "!v-!'
iiii iiliilllllili l:!iiii!ii

•iiLniiiiiLiuli!
1965

1966




1967

1968

1969

1040

104

980

98

920

92

860

86

800

80

740

74

TABLE 9: Stock Market Credit

CUSTOMERS'
CREDIT EXTENDED TO CUSTOMERS BY: NET DEBIT
BANKS 2 | TOTAL
BROKERS 1
BALANCES
END OF PER10E

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

' Outstanding.;
1968-

Mar.
Apr.
May
.
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb- j:/
Mar. j[/

6,190
6,430
6,640
6,690
6,500
6,460
6,390
6,250
6,200
6,200
5,910
5,760
5,680

2,370
2,350
2,360
2,410
2,420
2,490
2,520
2,560
2,630
2,710
2,750
2,810
2,781

8,560
8,780
9,000
9,100
8,920
8,950
8,910
8.810
8,830
8,900
8,660
8,570
8,461

7,248
7.701
8,268
8,728
8,861
8,489
8,724
8.859
9,029
9,790
9,107
9,148
8,348

2^692
2,979
3,064
3,293
3,269
2,984
3,126
3,407
3,419
3,717
3,597
3,645
n. a.

-50
-20
10
50
10
70
30
40
70
80
40
60
-29

-10
220
220
100
-180
30
-40
100
20
80
-240
-140
-109

-171
453
567
460
133
-371
235
135
170
761
-683
-51
-800

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

^

4*556
4,722
5,204
5,435
5,592
5,505
5,590
5,452
5,610
6,073
5,510
5,503
n. a.

Change in:
Outstanding
1968-

Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969 - Jan.
Feb.®,Z
Mar. £ /
1

2
3

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

. -290
-200 ,
-80

-85
166
482
231
156
-86
85
-138
158
563
-501
-7
n.«.

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.




TABLE 10:—Savings Flows at Nonbank Depositary Intermediaries
($ m i l l i o n s )
.
/ \

DATE

MUTUAL SAVINGS BANKS
NET
REGULAR DEPOSITS 3
NEW
ANNUAL
2
MONEY
GROWTH
NET
RATE 1
FLOW
i.
2,557
5,082
4,186

1966
1967
1968

•

4.9
9.3
7.0

3,584
10,687
7,396

162
301

-251
584

266
350
645

117

1969 - Jan.
Feb.
Mar. p./

218
331
650

--

106
264
70

1968 - Oct.
1968 - Nov.
Dec.

363
395
362

6.9
7.5
6.8

1969 - Jan.
Feb."

220
384

4.1
7.2

390

7 . 2

Mar.2/

NET
NEW
. MONEY 2

Wot Seasonally Ad lusted
227
2,376
1,143

1968 - Jan.
Feb.
Mar.2./

——

TOTAL
SAVINGS ' 6c LOAN ASSOCIATIONS^ \
DEPOSITS
' NET
SHARE CAPITAL'
ANNUAL
NEW
. ANNUAL
NET
GROWTH
MONEY 2
. GROWTH
NET
RATE 1
FLOW
FLOW
RATE 1

—-- .

H*
— "*

1,275

3.2
9.4
5.9

—

-552
6,129
2,676

I 6,141
1 15,769
11,582

-270
559
541

15
934
1,920

-130
574

r/127
r/941

—

r/-91

—
r/610
—
r/1,312
412
Seasonallv Ad lusted
-- .
764
7.1
—
620
5.7
.
620
5.7
—

r/523
r/ 587
r/837

4.8

——

5 . 4

—

7.6

cj 1 , 9 6 2

3.8
9.4
6.3

'
,1

-325
8,505
3,819

„

-108
860

--

658
—

.

1,127
1,015
932

7.0
6.3
6.1

r/743
r/971

4 . 6

1,227

7.5

6 . 0

"24

838
482

—

.

——
——

1 • Annual growth irate for monthly data is the annualized monthly percentage increase in deposits
2
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 96% of the total resources of the industry.
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,
p
Preliminary.
' ,
*

s&L series reflects FHLB revisions of data shown here through 1968.




SAVINGS FLOWS (seasonally adjusted)
Monthly

'

Millions of dollars

2000
1600
TOTAL
1200
800

400

400

SAVINGS & LOANS

MUTUAL SAVINGS BANKS

1965




1966

1967

1968

1969

TABLE 11: Mortgage Commitments at Selected Thrift Institutions
NET CHANGE
ALL
SAVINGS &
LOAN . '
ASSOCIATIONS

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

DATE

(Billions of Dollars, Seasonally Adjusted)
1968- Feb.
Mar.
Apr j
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
1969- Jan.
Feb.E./

1

8.4
8.6
8.7
8.6
8.6
8.8
9.0
9.1
9.5
9.7
9.7
9.9
10.1

'

5.9
6.1
6.2
6.0
5.9
6.1
6.1
. 6.2
6.4
6.5
6.6
6.7
6.9

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

.04
.17
.14
-.13
.04
.24
.16
.14
.35
.27
-.01
.15
.25

MUTUAL
SAVINGS
BANKS'
(N.Y. STATE)

If

.09
.15
.14

-.16
-.10

.16

.10
.22

.10

.02
.02

.06
.08

.16
.04
. 13
.17

.08

-.10

.08

.07
.03

.22

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

MORTGAGE COMMITMENTS OUTSTANDING (saar)

Billions of dollars

Monthly

TOTAL

S&L'S

MSB'S

1959




1963

1965

1967

1969

22

TABLE 12: Net Change in Mortgage Holdings 1

DATE

• TOTAL
INCLUDING
FN MA

TOTAL

FINANCIAL INSTITUTIONS
SAVINGS
MUTUAL
&
SAVINGS
LOANS.
BANKS

LIFE
INSURANCE
COMPANIES

FNMA

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

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

-52
-66
66
356

1,683
1,651
373

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

795
551
508
469

COMMERCIAL
BANKS

1965 - I '
II
III
IV

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

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

823
1,749
1,805
1,322

965
946
1,072
1,078

1966 - I
II
III
IV

5,425
5,648
3,976
3,056

4,630
5,097
3,468
2,587

975
1,656
1,300
774

753
513
739
715

1967 - 1
II
III
IV

2,617
4,868
6,285
6,246

2,267
4,762
5,706
5,484

151
1,200
1,751
1,537

770
786
839
758

486
2,119
'2,595
"2,320

860
657
521
869

350
106
579
762

1968 - Jan.
1,403
Feb.
1,577
Mar.
1,788
Apr.
1,969
May
2,227
June " 2,125
July r/1,851
Aug. r/1,982
Sept. r/2,000
Oct. r/2,314
Nov. ir/2,088
Dec. .r/2,483

1,053
1,273
1,514
1,723
1,992
1,905
i /I,699
i /I,841
i /I,892
i /2,153
x /I,943
i /2,311

300
400
400
616
616
616
r/533
r/533
r/746
r/807
r/706
r/404

215
197
137
160
203
219
248
233
221
313
310
340

380
542
789
879
957
901
718
874
810
645
732
903

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

350
304
274
246
235
220
152
141
108
161
145
172

1,650
n.a.

1,449
n.a.

293
228

622

500

684

134
n. a.

201
221

1969 - Jan.
•_

Feb. j

400

.

-

'

I54

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

Billions of dollars

Monthly

I I I I | i I I I i i I I i i i I 3.0

TOTAL, INCL. FNMA

FINANCIAL INSTITUTIONS

1966




1967

1968

1969

TABLE 13: Net Increases in Mortgage Debt Outstanding 1

QUARTER

TOTAL

(Seasonally Adjusted Annual Rate)
1- to 4- MULTI- 1
RESIDENTIAL 2
FAMILY
FAMILY 1 COMMERCIAL

19.65 - I
II
III
IV

24.9
25.2
25.8
26.6

18.6
18.5
19.3
19.6

15 ;1
15.1
15.5
15.8

1966 - I

28.4
23.6
17.8
14.9

19.0
15.3
10.6
9.2

14.7
12.18.3
7.2

1967 - I
11
II
cv .

15.5
20,4
26.3
28.5

9.9
13.7
19.1
20.6

1968 - I
II
II.
IV

27.1
26,2
25.8
30.2

18.3
18.6
17,8
21.0

II
III
- IV

MULTI-AND
COMMERCIAL

FARM

3.5
3.5
3.8.
3.8

4.2
4.5
4.4
4.6

8:0
8.1
8.4
7.9

2.2
2.1
2.2
2.4

4.3
2.3
2.0

7.0
6.1
5.1
3.9

11.7
9.4
7.7
5.6

2.4
2.2
2.1
1.7

6.8
10.5
15.3
16,5.

3.1
3.2
3.8
4.3

3.8
4.8
4.8
5.1

7.3
8.0
8.8
8.8

1.8
1.9
2.4
2.6

16.3
14.7

2.0
3.9
3.3
4.0

6.3
5.3
6.2
7.7

8.6
9.3
9.8
10.8

14.6
17.0

3.2

__

2.5 1
2.3
1.8
1.6

Derived from data on mortgage debt outstanding from Federal Deposit Insurance
Corporation, Federal Home Loan Bank Board, JLnstitute 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 nonfariA 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 multi-family mortgage defc>t combined.
r/

Preliminary.




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions of dollars, seasonally adjusted annual rate

TOTAL

24
TOTAL
RESIDENTIAL

_y

/ 1-4 FAMILY

COMMERCIAL

MULTIFAMILY
1965




1967

1969

TABLE 14: FNMA Weekly "Auction" Results ,

TOTAL
OFFERED

AMOUNTS IN $ MILLIONS
ACCEPTED
1_
TOTAL
906MONTH Year&ovcr
DAY

1969 - 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

Mar. 3

118.,9
127. 1
132.,7
220,.9

90.5
84.6
88,5
84,1

11.5
7.5
3.1
3.5

38.1
37.0
45.6
47.4

Apr. 1
7

182 .9
175,.9

93.1
102.5

4.6
8.2

14
21

144 .7

47.2
57.8 .
52.3

WEEK
ENDED

10
17
24

Note;

3

IMPLICIT YIELD i z

y

<101.1
7.9
(100.0)3/

(per cc

y

1Year & over

90DAY

6M0NTH

7. 98
8. 0 1
8. 04
8. 09

7.99
8.05
8.09
8.14

7. 82
7. 91
7. 95
8. 00

41.0
40.2
39.8
33.3

8,,13
8.,14
8,.09
8 .10

8.17
8.13
8.08

8.,02
8.,00
7,,95

8.09

7..96

41.4
36.5
40.9

8 .10
8 .12
8 .10

8.11
8.13

7 .98
8 .01

8.10

7 .98

f

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 F N M A 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 w h i c h mortgages may be delivered only
. after completion and occupancy.

1

For "proposed construction" of new homes only.

2

Average secondary market yield pfter 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.
FNMA aeyaounoed limit of accepted bids for next week's auction.




FNMA WEEKLY "AUCTION" RESULTS
- •

'

$ Millions

120
AMOUNT OF ACCEPTED BIDS BY COMMITMENT PERIOD

100
80

\

6-MONTHS

40
20

1 YEAR
I 90 DAYS
IMPLICIT YIELD

8.0
7.6
72

JUNE

AUGUST




.

1968

OCTOBER

:

DECEMBER

FEBRUARY

1969

TABLE 15: Private housing starts and Permits

STARTS
'DATE

SEASONALLY A D J U S T E D ^
ANNUAL RATE
TOTAL 1-FAMILY 2 OR MORE

TOTAL

UNADJUSTED
E OF FINANCING
, TYP
FHA VA
OTHER

.

1968 - Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1,511
1,591
1,364
1,365
1,531
1,518
1,592
1,570
1,733
1,509

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

1969 - Jan. r/ 1,878
Feb. r/ 1,673
Mar.
1,539

r/1,066 r/812
r/974 r/699
825 - 7 1 A

126.6
162.0
140.9
137.9
139.8
136.6
134.3
140.8
127.1
96.4

|

19.6 4.5.
22.6
5.4
20.5 5.5
19.8 5.0
18.8 4.9
20.9 4.8
18.6 4.6
21.4 5.3
17.5, 4.2
16.3 4 . 4

r/101.5 r/14.2
13.2
r/89.5
128.4
18.9

1

3.8
3.5
3.9

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE)2

102.4
134.0
114.9
113.1
116.2
110.9
111.1
114.0
105.4
75.7

1,416
1,340
1,280
1,281
1,289
1,290
1,393
1,378
1,425
1,463

r/83.5
72.9
105.6

1,403
1,477
1,370

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. A s 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.
apehart military housing units are excluded. Other starts are
z
./; derived as a residual, although total and FHA and VA starts are not strictly
* comparable in concept or timing; other starts include both units financed by conventional mortgages and units without mortgages.
Building permits before January 1963 are Census estimates for about 10,000 areas
2
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.
r

Revised.

p

Preliminary.




>

PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED DATA
-

A

HOUSING STARTS J \

/ A

r*

/ A

-

BUILDING PERMITS
(in issuing areas)
1

'

1

'

*

" 1

I

!

-

| u n ,

1

f CHANGE IN SERIES
1 1 1 1 III 1 ! i !
Per

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
A

,

(3 or more)

, GOVERNMENT UNDERWRITTEN
1

1963




1965

•

:

1967

!

1

I ! 1 1 ! 1 1 11 1 1 1 1 ! ! ! 1 1 1 I 1 •

1969

TABLE 16: Mortgage and Bond Yields
FHA
MORTGAGES

SPREAD BETWEEN YIELDS
ON CONV, &
FHA MORTGAGES 4

CONVEN2

. DATE
25-YEAR 30-YEAR

TIONAL
MORTGAGES

3
5.63
5.35
6.24
5.43
6.73

1957 - High
1958 - Low
1959-60 - High
1961-66 - Low
1966 - High
1967 - High
Low
1968 - High
Low

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

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

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

1

n.a.
n.a.
n.a.
5.44
6.81
6.81
6.29
7.52
6.78
7.29
7.36
7.50
7.99

6.00
5.55
6.30
5.80
6.70
6.65
6.40
7.30
6.75

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

7.25
7.30
7.40
7.55
7.60

-.04
-.06
. -.10
——

,

-.39

1

NEW
Aaa CORPORATE
BONDS

~"5

SPREAD BETWEEN
YIELDS ON NEW
• CORPORATE BONDS
AND
FHA MORTGAGES

4.94
3.65
5.25
4.41
5.82
6.51
5.18
6.79
6.15

1.58
.88
1.69
.77
1.16
1.28
.27
1.20
.26

6.47
6.61
6.79
3 6.92 f
6.92

.82
.75
.71
—

1.07

Neither mortgage nor bond yields take into account servicing costs which are
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
table.
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 a n d — b e g i n n i n g 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 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.
4
FHA mortgage yield data are for 25-year mortgages through June 1961; 30-year
mortgages thereafter.
5
See note for Table-1. (Data prior to 1965 is based on a composite of issues with
and without call protection.) n.a. Not available.




MORTGAGE AND BOND YIELDS
Monthly

.

Percent

HOME MORTGAGES:
CONVENTIONAL

Aaa CORPORATE BONDS:
NEW ISSUES

I

1961

i
!




1963

1965

1967

1969

TABLE 17: Conventional Mortgage Terms
HEW HOMES

DATE

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

1

EXISTING HOME!

FEES &
LOAN/
CHARGES EFFEC- MATU- PRICE
PRICE LOAM
(PER
RATIO AMI. RATE
RITY RATIO
TIVE
CENT) RATE (YEARS) (PER
(PER ($000) (PER
CENT)
CENT)
CENT)
2
3

TQAN7

CONTRACT

6.58
6.59
6.64

LOAN
AMT.
($000

1968

6,47
6.50
6.57
.69
6.88
7.04
7.10
Aug.
Sept. 7.10
"Oct. 7.09
Nov,
7.07
Dec.
7.09
1969
7.16
" 2b.
i'ar.
Apr.
May.
Tune
July

iSiE/i

0.94
0.88
0.88
0.95
0.95
0.85
0.87
0.87
0.88
0.84
0.89
0.84

7.26 0.80

r ~ Revised.

6.62

0.81

6.64
6.71
6.84
7.03
7.17
7.24
7.24
.7.23
7.21
7.23

25.5
25.7
25.3
25.0
25.4
25.5
25.5
25.5
25.6
25.4
25.9

21.9
74.5
22.2
74.3
'21.9
73.4
7 3 . 2 , '21.7
7 4 . 4 . '22.3
7 3 . 7 . 22.2
22.6
73.6
22.1
74.2
22.7
74.5
22.5
74.1
z
24.7
74.0

6.97
7.10
7.12
7.11
7.09
7.07
7.09

0.85

7.30
7.39

25.6
25.6

73.6
73.2

7.18
7.28

0.86

t d

6.81

22.6

0.84

6.71
6.72
6.77
6.95
7.12
7.23
7.26
7.25
7.22

0.82

7.21
7.23

22.5
22.7
23.3

0.86

7.32
7.42

22.9

0.79

0.80

0.87

0.86

0.83
0.85

0.82

23.0

22.6
22.5

22.6

22.5
22.7

22.6

22.8

73.6
73.3
72.8
73.1

17.9
18.3

18.1
18.3

18.2

8:2

73.0
72.6
72.4
72.9
73.2

18.5

18.6

18.3
Z18.3
18.9
20.4

72.6
72.8

p Preliminary

20.0
19.7

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

1 30

• •

MATURITY

NEW

25

EXISTING

LOAN/PRICE RATIO

EXISTING
70

65
1963




1965

1967

1969
* CHANGE IN SERIES