Full text of H.16 Capital Market Developments : August 16, 1970

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DECONTROLLED AFTER SIX M O H W

August 16 T

\

CAPITAL
MARKET
•EVELDPMENTS

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




V

1970

<L<- ^

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 - July

Aug.

Aug.

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

3
10
17
24
31

9.02
8.70
8.58
8.38
8.60

8.60
8.55
8.49
8.50

360
395
475
403

100
94
83
88

8.26

364

91

7
14
21

8*35
8.53
n.a.

8.17
8.10
n. a.

330
581
300e

77
87
n.a.

WEEK ENDING:

1970 - July

YIELDS
MOODY'S
SEASONED
NEW ISSUE 1
Aaa

3
10
17
24
31
7
14
21

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

886
580
674
883

1,380
n.a.
n.a.

MUNICIPAL BOND MARKET
VOLUME 2
GROSS
OFFERINGS

PER CENT
SOLD BY END
OF WEEK

BONDS SCHEDULED
WITHIN 28 DAYS
634
845
781
808

6.65
6.50
6.50
6.15

6.79
6.59
6.60
6.28

351

54
67
62
72

6.20

6.40

397

62

676

6.10

6.25

288

89

710

6.10
n.a.

6.30
n.a.

312
300e

57
n.a.

n.a.

119
177
282

.

——

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 1




TABLE 2: Details on Inventories
DATE
OFFERED

8/13
8/12
8/11
8/11
8/10
8/5
8/5
7/30

AMOUNT
(MIL. $)

Cent. Maine Pwr.
S. Western Bell
North 111. Gas
Shell Oil
Nat'1 Fuel Gas
Gen'l Tel. & Elec.
Duke Pwr.
Petmwalt Corp.

35.0
150.0
35.0
150.0
21.0
50.0
100.0
40.0

DATE
OFFERED | RELEXSED

CORPORATE BONDS IN SYNDICATE END OF LATEST:WEEK
ORIGINAL
RATING AND
ISSUER
Y;ELD CALL PROTECTION
COUPON

|

9.30
8.75
8.50
8.50
8.63
8.75
8.63
9.13

9.30
8.70
8.28
8.52
8.45
8.80
8.65
9.18

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

A
Aaa
Aa
Aaa
A
Baa
Aa
A

ESTIMATED PROPORTION SOLD
70%
75%
65%
95%
70%
90%
30%
85%

CORPORATE BONDS RELEASED FROM SYNDICATE DURING LATEST WEEK
ORIGINAL INCREASE RATING AND ESTIMATED PROAMOUNT
ISSUER
COUPON
IN YIELD CALL PROT. PORTION RELEASED
YTF.1.D

DATE
1970 - July 17
24
31
Aug. 7
14P

INVENTORIES 1
MUNICIPALS
BLUE LIST
|
IN SYNDICATE
1

376
392
452
543
565

128
119
215
126

CORPORATES
IN SYNDICATE
*

108
50
40
109

i

N.C. - No call protection.
1

All figures in millions of dollars. Blue List is daily average for week ended Friday, except for latest week
which is daily average of three days ended Wednesday. All other figures are as of Friday.




BONDS IN SYNDICATE
Friday figures

Millions of d o l l a r s

CORPORATE BONDS IN SYNDICATE

200
100

MUNICIPAL BONDS IN SYNDICATE
300

200
100

DEC.

SEPT.

68

'

.

MAR.

JUN.

1969

.




,

SEPT.

DEC

JUN.

SEPT.

DEC

1970

•

-

\
TABLE 3: High Grade Bond Yields

DATE

NEW
CORPORATE
Aaa 1

MOODY'S SEASONED
CORPORATE
Aaa 2

/

U .S. GOVERNMENT
20-YEAR
CONSTANT
MATURITIES 3

1968 - High
Low

7..02
6.,13

(12/13)
(8/30)

6,.55
5,.95

(1/27)
(9/13)

5.,90
5.,18

1969 - High
Low

8..85
6,.90

(12/5)
(2/21)

7..84
6,.55

(12/26)
(1/13)

6. 97
5.,96

1970 - High
Low

9..30
8..20

(6/19)
(2/27)

8..60
7..79

(7/3)
(3/6)

7.,55
6.,60

Vl/20)
(8/9)

BOND
BUYER'S
SEASONED
MUNICIPALS 4
4,,85
4,.07

(1/26)
(8/8)

(12/26)
(1/24)

6.,90
4.,82

(12/18)
(1/28)

(5/29)
(3/6)

7.,12
5.,95

(5/29)
(3/12)

1970 - July

24
31

8,.38
8..60

8,.40
8..26

6.,89
6.,90

6.,28
6,,40

1&70 - Aug.

7
14

8,.35
8,.53

8,.17
8,.10

6.,96
7 .11

6.,25
6..30

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
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

NEW CORPORATE Aaa

MOODY'S V
CORPORATE Aaa

U S. GOVT. 20-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

STATE AND LOCAL

1969

1968

1970

1969

1968

1,340
1,214
1,551

1,262
987
538

1,178
1,158
1,404

1,646
995
1,070

1,801
1,110
737

1,318
1,143
.1,395

l,300e
l,300e

1,097
808
559

1,469
1,699
1,444

1,280
886
816

2,230
1,021
1,115

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

3,840
3,856
4,612
4,366

January
February
March

2,636
1,802
3,539

2,075
2,045
2,098

1,771
1,608
1,799

April
May
June

3,142
3,600e
3>225e

2,748
2,07.6
2,530

1,428
1,866
2,411

July
August
September

2,850e_
2,700e

2,478
1,427
2,427

2,143
1,432
1,557

1,933
2,375
2,532

2,129
1,767
2,054

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

5,178
5,704
5,133
5,950

13,572
19,904
26,744

10,882
16,015
21,965

October
November
December
1st
2nd
3rd
4th

Quarter
Quarter
Quarter
Quarter

1st half
Three quarters
Year

7,977
9,967e

j
1

4,105
3,711
_

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

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.




2

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

QUARTER
OR
MONTH

TOTAL

GROSS PROCEEDS BY
TYPE OF ISSUE
COMMON
MEMO:
BONDS
AND
ISSUES INCLUDED
PUBLICLY I PRIVATELY PFD.
STOCK
FOREIGN
| CONVERTIBLE
OFFERED j PLACED

GROSS PROCEEDS BY
TYPE OF ISSUER
COMMUNICATIONS

MFG.,

PUBLIC
UTILITY

1,126
750
809

1,773
1,862
1,314

1,878
1,544
1,967

432
684
598

3,266
2,243
2,961

0%HER
ISSUERS 1

1969 - II
III
IV

7,354
6,332
6,840

3,411
3,186
3,479

1, 673
1 347
1 053

2,268
1,797
2,307

227
289
115

1970 - I
He

7,977
9,967

4,577
6,926

1 235
1 ,333
=

2,147
1,708

222
n.a.

922
649

2,584
2,690

2,085
2,607

766
2,215

2,543
2,455

1969 - June
July
Aug.
Sept.
Oct.
Nov.
Dec.

2,530
2,478
1,426
2,427
1,933
2,375
2,532

1,272
1,279
685
1,222
969
1,164
1,346

514
609
259
479
313
226
514

744
589
482
726
651
984
672

137
132
122
35
59
8
48

233
214
167
369
105
303
401

691
875
362
625
260
453
601

702
493
507
544
745
622
600

191
286
126
272
120
201
277

946
826
433
984
808
1,099
1,054

1970 - Jan.
Feb.
Mar.
Apr.£/
May e/
June—/

2,636
1,802
3,539
3,142
3,600
3,225

1,595
1,068
1,914
2,001
3,000
1)925

516
266
471
433
400
500

525
468
1,154
708
200
800

61
33
128
88
n.a.
n.a.

387
249
286
374
200
75

811
357
1,416
690
900
1,100

639
540
906
1,107
450
1,050

234
226
306
65
1,800
350

952
680
911
1,280
450
725

1

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




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

ISSUER

TYPE 2

AMOUNT
(MILLIONS
OF
DOLLARS)

COUPON
RATI- OR
NET INTEREST COST

OFFERING
YIELD

1985

8.75

8.81

1976
1976
1975
1990

8.75
9.00
10.00
9.88

8.80
8.89
10.00
9.93

Baa
N.R.
Baa
A

2000
1990
1975
2000
2000
1976
2007
1995
1995
1995

8.63
10.13
8.63
8.50
8.50
8.50
8.75
9.00
9.30
8.00

8.65
10.13
8.45
8.52
8.65
8.29
8.71
9.00
9.30
8.00

Aa
Baa
A
Aaa
Aa
Aa
Aaa
A
A
N.R,

MATURITY

MOODY'S
RATING

Corporates
Union Pacific R.R. Co.
Gen'l Tel. & Elec. Corp."
Household Finance Corp.
Philips Industries Inc.
Acme Markets Inc.
Duke Pwr. Co.
"
)
United Gas Pipeline Co.
National Fuel Gas Co.
Shell Oil Co.
Bristol-Myers Co.
Northern Illinois Gas Co.
Southwestern Bell Tel. Co.
Burlington Indus. Inc.
Central Maine Pwr. Co.
Ramada Inn




50.0
Squip. Trst.
Ctfs.
90.0
Lst.Mtg.
75.0
lebs.
15.0
Rotes
25.0
S.F. debs
L st. &
te funding Mtg.100.0
15.0
lebs.
21.0
debs.
150.0
S.F# debs.
75.0
S.F. debs.
35.0
lst.Mtg.
150.0
debs.
75.0
S.F. debs.
35.0
1st. & Gen.
25.0
debs.

Aaa

TABLE 6: Larcje LOIUI tetm Public Security Issues for New Capital (contimu d)
(Olliet than U.S. Treasury)'
AMOUNT
(MILLIONS
OF

MATURITY

DOLLARS)

August 1 through
14
COUPON
1
RATE OR
H'Fl'.K - MOODY'' S
NET INTERL.(
RATING
EST COST
VILLI)

State and Local
Turnpike Auth, Kentucky
Turnpike Auth. of Kentucky
Virginia Pub. Sch. Auth.
Taylor, Mich S/D
San Francisco BARTS
Atlanta, Ga.
Washington Sub. Sanit.
Dist., Maryland
Puerto Rico Aqueduct &
Sewer Authority
Florida State Bd. of Ed.
Alabama Highway Auth.
California
Illinois State Univ.

Rev.
Rev.
Rev.
6.0.
Rev.
G.O.

9.0
51.0
25.0
12.2
50.0
15.0

1974-90
2010
1972-86
1971-90
1972-80
1971-1995

7.38
5.67
6.86
6.23
5.86

5.30-7.10
7.38
4.60-6.50
4.75-7.10
5.00-6.20
4.50-6.30

Aa
Baa
A
Aa

Bds.

17.0

1971-2000

6.30

4.75-6.75

A

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

20.0
20.0
35.0
100.0
11.9

1972-2003
1980
1980
1971-90
1985

6.60
6.39
6.20
• 5.56
7.38

4.70-6.45
4.30-6.30
4.50-6,60
4.20-6.00
5.00-7.40

Aa
A
Aa

9.67

A

-

-

-

—

Other
Quebec Hydro-Elec. Comm.

debs.

75.0

1997

9.50

lights 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 gem-vaI obligation;
Rev.-Ut., revenue obligations secured only by income from public utilities;
Rev.-Q.-lit., revenue bonds secured only by income from quasi ^utilities; Rev.-S.IV,
revenue bonds secured by revenue from specific taxes only; Rev.-Ri*nt., revenue
bonds secured solely by lease payments.
Includes foreign government and International Bank for Reconstruction and
Development issues and non-quaranteed issues by Federal Agencies.




TABLE 7: Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U.S. Treasury) 1
(continued).
^ p£
1 4

ISSUER

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

APPROXIMATE DATE
OF OFFERING

Corporates
15.0
American Finance System, Inc. debs.
45.0
Wisconsin Pub. Service Corp. bonds
25.0
bonds
Central Illinois Lt. Co.
40.0
Gen'l Tel. & Electronics Corp .debs
bonds
- 70.0
Potomac Electric
25.0
bonds
Arkansas Pwr. 6c Lt. Co.
Burlington Northern Inc.
Equip. Trst.
20.0
conv. debs.
150.0
Holiday Inn Investors
debs.
50.0
May Department
Gen'l Motors Acceptance Corp. debs.
100.0
25.0
1st. Mtg.
UGI
Rochester Gas & Elec. Corp.
1st. Mtg. Bd.
30.0
North Indiana Pub. Ser. Co.
bonds
35.0
35.0
bonds
Public Ser. Co. of Colorado
bonds
15.0
Central La. Elec. Co.
Continental Tel. Corp.
notes
65.0
bonds
Hawaiian Tel. Co.
35.0
200.0
Westinghouse Elec. Corp.
debs.
20.0
1st. Mtg.
Iowa-Ill. Gas & Elec. Co.
20.0
debs.
Hotel Investors
c
25.0
debs.
Amerace Esna o r p .
25.0
notes
Monogram Industries
debs.
Columbia Gas System Inc.
50.0
New England Tel. & Telegraph
debs.
Company
175.0
debs. .
100.0
International Harvester Co.
27.0
Atlantic City Elec. Co.
1st. Mtg.
1st. Mtg.
Georgia Pwr. Co.
75.0
bonds
40-50.0
Long Island Ligthing Co.
bonds
Virginia Elec. & Pwr. Co.
85.0
bonds
Texas Pwr. & Lt. Co.
30.0
1st. Mtg.
Ohio Edison Co.
45.0
debs.
Western Electric Co.
150.0




Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.

17
18
19
19
19
20
20
24
25
26
26
26
26
26
27
26
27
27
31

1
1
2
3
9
10
14
15
29

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

'

<

' ISSUER

'

1

'

TYPE

AMOUNT
(MILLIONS
OF
DOLLARS)

State and Local

]
]
|
i

APPROXIMATE DATE
OF OFFERING

<

Oregon, State of
G.O.
Penna. St. Pub. Sch. Bldg. Auth. G.O.
G. O.
King Co., Wash.
San Francisco Airport Imp. Corp.
G.O.
California
Connecticut
G.O.
Dade Co. Port Auth., Fla.
Rev.
St. Paul, Minn.
G.O.
Roanoke, Va.
G.O.
New Hampshire
G.O.
Oakland Co., Mich.
G.O.
Hennepin Co. Area Vo.-Tech.
S/D, Minn.
G.O.
Port of N.Y. Auth.
Rev.
Detroit, Mich.
Rev.
Baltimore Co. Md.
G.O.
Madison, Wis.
G.O.
Los Angeles DWAPS
G.O.
Ohio, State of
G.O.
San Jose, Cal.
G.O.
Jacksonville, Fla.
Rev.
Lake Orion Comm. S/D Mich.
G.O.
New York St. Hsg. Fin. Agency
G.O.
Broward Co. STSD #1 Fla.
G.O.
Los Angeles Parking Auth. Cal.
Rev.
Miami, Fla.
|
G.O.

55.0
21.4
11.0

Aug. 18
Aug. 18
Aug. 18

30.0
75.0
63.5
20.5
10.5
24.5
17.9

Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.

18
19
19
19
19
20
25

12.5
100.0
46.0
20.0
12.9
39.0
100.0
19.0
52.0
11.0
81.0
25.0
31.9
12.5

Aug. 26
*Aug. 26
Aug.
Sept, 1
Sept. 1
Sept. 2
Sept. 3
Sept. 8
Sept. 9
Sept. 16
Sept. 16
Sept. 16
Sept. 23
Oct. 8

300.0

Aug. 17

Other
Farmers Home Administration
GNMA

Notes
Bonds

600.0

Included in dable for first time.
Includes corporate and other issues of $15 million and over; State and local
Government ilsues 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
TRADING VOLUME 2

STOCK PRICES 1
S&P
500 3

DATE

1
1

AMEX4

D.J. - IND.

AMEX

l

1968 - High
Low

108.37(11/29) 985.21(12/13)
87.72(3/5)
825.13 (3/21)

33.24(12/20)
21.97(3/25)

82.61(6/7)
34.0(2/23)

45.4(6/7)
14.1(2/23)

1969 - High
Low

106.16(5/14)
89.20(7/17)

32.91(1/3)
25.02(7/29)

82.6(10/17)
32.8(4/4)

38.4(5/9)
12.9(4/4)

27.02(1/8)
19.36(5/27)

80.7(5/26)
35.1(7/3)

28.4(1/2)
8.3(7/3)

968.85 ( 5/14)
769.93(12/17)

1970 - High
Low

93.46(1/5) 811.31(1/5)
69.29(5/26) 631.16(5/26)

1970 - July 3
10
17
24
31

72.92
74.57
77.69
77.82
78.05

689.14
700.10
735.08
730.22
734.12

Aug. 7
14

77.25
75.18

725.70
710.84

1.

19.95
19. 93
20.19
20.32

35.1
53.8
49.7
56.1

8.3
12.1
10.6
10.6

20.50
20.37
20.05

51.2
40.6
38.8

11.3
11.2
9.0

Figures other than highs and lows are Fridays only.
for the year and are not necessarily for Fridays.

Highs and lows are

2.

1941-43 = 10.

3.

Average dollar value of shares listed.

4.

NYSE is the New York Stock Exchange; AMEX is the American Stock Exchange.
Total number of shares traded per week (millions of shares). Trading is
normally conducted for 5-1/2 hours per day and 5 days per week, or 27-1/2
hours per week. In recent years, however, abbreviated trading to the
extent, and 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




Hours/
Pay
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
AMEX PRICE LEVEL INDEX

3

28

1200 120

1120 112

S&P's 500

1040 104

960

96

880 88
800 80
720
Millions of shares

AMEX TRADING VOLUME (TOTAL FOR WEEK)

NYSE TRADING VOLUME (TOTAL FOR WEEK)

1966

1967




1968

1969

1970

72

TABLE 9: Security Credit

END OF PERIOD

CUSTOMERS'
NET DEBIT
BALANCES

CREDIT EXTENDED TO
MARGIN CUSTOMERS BY:
TOTAL
BROKERS 1

NET CREDIT
CUSTOMERS 1 NET EXT EN D KD BY
FREE CREDIT
BROKr'RS AND
BALANCES .
[_ DEALERS 3

Outstanding:
1969

June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1970 - Jan.
Feb.
Mar.
Apr.
May *
June ^

1969

June
July
Aug.
Sept.
Oct.
Nov.
Dec.

1970 - Jan.
Feb.
Mar.
Apr.
May r
JuneP

8,214
7,515
7,019
7,039
7,243
7,111
7,445

3,085
2,783
2,577
2,579
2,753
2,613
2,803

5,129
4,732
4,442
4,460
4,490
4,498
4,642

2,430
2,370
2,370
2,330
2..29P
2,290

7,110
6,940
6,890
6,690

6,683
6,562
6,353
5,985

2,626
2,563
2,441
2,248

4,057
4,099
3,912
3,724

6,450

5,433
5,281

2,009

-30
-40
-30
-50
-50
-50

-360
-210
-200
-110
50
- 20
- 40

2,570
2,520
2,580

4,680
4,570
4,520
4,360
4,160
3,920

-330
-170
-170
- 60

100
30

2,740
2,700
2,670

2,620

-100

60

-290

-150
-40

-110
- 50
-160

200
-240

8,080
7,870
7,670
7,560
7,610
7,590
7,550

5,340
5,170
5,000
4,940
5,040
5,070
4,970

-40
,.-40

6,210

-260
-699
-496

20

204
-132
334
-762

-440
-170
- 50
-200
240
-240

-121
-209
- 69
-152

2,122

3,211
3,272

1
-302
-206
2
174
-140
190

-261

-177
-163
- 22
-193
- 26
-213

-585
42
-187

-397
-290
18
30

8
144

-188
-513
- 61

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' nvt free credit balances, this figure represents the net credit extended by brokers an.!
dealers to the nonfinancial public.
NOTE: With the exception of bank loan dat^, figures are supplied by t.ho Sew York
Stock Exchange and are end of month data. B^nk loans are for weekly ruportinv
large commercial banks. Broker data includes loans for regulated securities; hank
data includes loans for the purpose of purchasing or carrying any socuri ty whethVr
regulated or not.




1

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

.

DATE

1967
1968
1969

MUTUAL SAVINGS BANKS
REGULAR DEPOSITS 3
NET
NEW
ANNUAL
MONEY 2
GROWTH
NET
1
FLOW
RATE
5,082
4,208
2,551

9.3
7.1
4.0

2,376
1,143
-747
227
-. 266
- 266

1969 - May
June
July

307
324
-164

——

1970 - May
June ]>/
July

326
464
260

——

1970 - Feb.
Mar.
Apr.
May P/
JuneP/
July

298
244
371
360
338
404

5.4
4.4
6.6
6.4
6.0
7.1

-—

--

224
- 133
150

5c LOAN ASSOCIATIONS
SAVINGS i
NET
SHARE CAPITAL
NEW
ANNUAL
MONEY2
NET
GROWTH
1
FLOW
RATE
Not Seasonally Adlusted
6,129
9.4
10,649
2,738
6.0
7,399
•1,003
4,020
3.1

642
1,359
- 1,110
753
1,812
510

--

601
- 116
1,122

——

705
287
n.a.

TOTAL
DEPOSITS
ANNUAL
NET
GROWTH
RATE '
FLOW
15,371
11,607
6,371

949
1,683
- 1,274

NET
NEW
MONEY 2

9.4
6.3
3.4

8,505
3,881
-1,750

—-

828
382
-1,388

--

1,079
1,281
770

- -

545
1,265
1,344
997
1,240
2,051

3.3
7.5
8.0
5.9
7.3
11.9

929
154
n.a.

--

Seasonally Adiusted

1
2
3

-——

--

247
1,021
973
637
902
1,647

2.2
9.1
8.6
5.6
7.9
14.3

-—

-—
--

Annual growth rate for monthly data is the annualized monthly percentage increase in deposits.
Net New Money is new deposits net of both withdrawals and interest. Data for S&Ls are for
insured associations only, which represent 967„ of industry total resources.
Regular deposits at mutual savings banks exclude items such as Christmas club and certain
escrow accounts, which represent a very small part of total deposits.
.SOURCE: National Association of Mutual Savings Banks and Federal Home Loan Hank Board.




19

SAVINGS FLOWS (seasonally adjusted)

Minions 01 aoiiars

Montniy

1 2000
1600
TOTAL

1200
800
400

400

1200
SAVINGS & LOANS

800
400

400

800
MUTUAL SAVINGS BANKS

400

400
1966

1967




1968

1969

1970

TABLE 11: Mortgage Commitments at Selected Thrift Institutions

DATE

TOTAL

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

\

|
TOTAL

NET CHANGE
ALL
SAVINGS &
LOAN
ASSOCIATIONS

(Billions of Dollars, S< lasonally Adjusted)

L969 - M a y
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
L970 - Jan.
Feb.
Mar.
Apr.
May
June

l

10.4
10.2
9.9
9.5
9.2
8.9
8.6
8.4

7.1
7.0
6.8
6.5
6.4
6.1
5.9
5.8

3.2
3.2
3.1
3.0
2.8
2.7
2.7
2.6

8.2
7.9
7.6
7.8
8.0
8.2

5.6
° 5.4

2.6
2.5
2.5
2.4
2.2
2.1

5.2
5.4
5.8
6:1

v

1

MUTUAL
SAVINGS
BANKS
(N.Y. STATE)

1/

-.11
-.18
-.32
-.36
-.31
-.33
-.24
-.25

-.06
-.11
-.22
-.24
-.18
-.23
-.18
-.12

-.05
-.06
-.10
-.12
-.13
-.09
-.06
-.13

-.17
-.30
-.26
.13
.24
.22

-.22
-.23
-.21
.26
.38
.30

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

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.







J
14

12

10

8

6

4

2

0

TABLE 12: Net Change in Mortgage Holdings

TOTAL
INCLUDING
FNMA-GNMA
18,105

1966
1967
1968
1969

20,016
23,781
24,051

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

FINANCIAL INSTITUTIONS
MUTUAL
SAVINGS &
SAVINGS
LOAN
COMMERCIAL
ASSOC.
BANKS
BANKS
Not Seasonally Adjusted
3,761
2,720
4,705
7,520
3,153
4,639
9,350
2,787
6,677
9,407
2,682
5,535
627

2,387

2,036
1,976
2,165

575

1,500
1,634

1,023
1,256

200
200

1969 - Apr.
May
June

2,227

Apr.
May
June

1970

TOTAL

2,161

1

600

400

204
233
230

1,026

4,596
2,907
2,459
2,052

1,216

179
155
144

486
723

177
189

988

160
144
214

LIFE
INSURANCE
COMPANIES

1,128

Seasonally Adjusted
1969 - June
July
Aug.
Sept,
Oct.
Nov.
Dec.

2,153
1,698
1,910
1,876
1,734
1,652
1,906

1,875
1.364
1,380
1.365

1970 - Jan.
Feb.
Mar.
Apr.
May
June

1,493
1,604

937
1,105
712
892

1,228
1,386
1,484

1,166
1,069
1,292

1,066

440
151
310
383
244
237
347
288
285
144
141.
133
269

230

1,022

181

859
720
~654
627
547
576

157
137
124
146
235
24
143
197
205

160_
213

400
436
276
357
588
935

183
173
193
191
171
139
.134
225
241
125
189
196

Monthly data for commercial banks based on Federal Reserve estimates benchmarked
to Call Report data on real estate loans outstanding as available. Other data
derived from mortgage debt outstanding as reported separately by National Assn.
of Mutual Savings Banks, Federal Home Loan Bank Board, Institute of Life Insurance
and, through August 1968, the Federal National Mortgage Association, and there-:
after by FNMA and the Government National Mortgage Association. Data for mutual
savings banks and for Life Insurance companies may differ somewhat from those
derived from regular quarterly series because of minor conceptual differences for
which adjustments are not made in the monthly series. Altogether, these groups
accounted for 87 per cent of the net increase estimated for all holders in 1967.




NET CHANGE IN MORTGAGE HOLDINGS (seasonally adjusted)
Billions of dollars

Monthly

I I i i i I 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 of dollars, SAAR -

,

TOTAL

RESIDENTIAL 3

1- to 4FAMILY

MULTIFAMILY

COMMERCIAL

MULTI-AND
COMMERCIAL

1966 - H i p
IVp

18.7
15.2

11.0
9.2

8.4
7.0

2.6
2.1

5.5
4.2

8.2
6.2

2.2
1.8

1967 - IP
IIP
IIIp
IVp

15.6
20.5
27.0
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
Hp
IIIp
IVp

27.1
25.9
26.5
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 - I P
IIP
IIIp
IVp

30.4
28.5
25.1
25.7

22.1
21.2
20.1
18.6

17.9
16.5
15.5
13.7

4.2
4.7
4.6
4.8

6.1
5.0
5.0
6.0

10.3
9.6
9.5
10.8

272
2.3
1.8
1.2

1970 - Ip

19.7

13.4

8.9

4.3

5.2

9.7

1.1

QUARTER

FARM

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 mainly by Federal Reserve.
"May differ"somewhat from related flow of funds series mainly because of more
aggregative type of seasonal adjustment.
Residential mortgage debt includes nonfarm only and is sum of 1-to 4- family
and multifamily mortgage debt combined.
,




NET INCREASES IN MORTGAGE DEBT OUTSTANDING
Quarterly

Billions o f dollars, seasonally adjusted annual rate

TOTAL

TOTAL
RESIDENTIAL

1 4 FAMILY

COMMERCIAL

MULTIFAMILY

1966

1968

\




1970

TABLE 14: ,FNMA Weekly ^Auction" Results

WEEK
ENDED

COMMITMENTS IN $ MILLIONS '
IMPLICIT YIELD 2 (per cent)
ACCEPTED
1-YEAR'l
906901-YEAR 1
TOTAL
TOTAL
6MONTH & OVER
OFFERED
DAY
& OVER
DAY
MONTH

May

5
11
18
25

443.3
269.2
300.3
289.5

195.5
102.2
136.3
145.2

43. 5
26. 0
32. 4
38. 9

212. 1
63. 2
86. 4
86. 7

June

1
15
29

224.2
249.7
156.3

113.8
127.9
98.9

31..1
34,,2
30.,6

July

13
27

286.2
323.8

113.3
150.4

Aug.

10
24

441.3

38. 9
9.01
13, 0 ; 9.04
17.,5
9.11
19.,7
9.15

9.,04
9.,07
9.,13
9,,18

9.10
9.13
9.18
9.22

71.,4
86.,7
56.,5

11.,3
7.,0
11., 8

9.20
9.27
9.32

9,.24
9,.30
9,.33

9.27
9.31
9.34

25,.0
37,.0

73.,0
91,,1

15.,3
22,,3

9.20
9.10

9,.21
9,.12

9.22
9.12

180.2
.41.,4
Zoo.o)-/

91.,0

47.,8

9.03

9..03

9.04

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 of
I V years for 30-year Government-underwritten mortgages. Yields shown
are gross, before deduction of 38 basis points fee paid by investors
to servicers. Prior to August 10, 1970 the servicing fee was 50 basis points.
FNMA announced limit of accepted bids for next week's auction.




27

FNMA "AUCTION" RESULTS
$ Millions

AMOUNT OF ACCEPTED BIDS
BY COMMITMENT PERIOD
150

6 MONTHS
100

1 YEAR
AND OVER

50

3 MONTHS
12

IMPLICIT YIELD
6 MONTH COMMITMENTS

10

,
8
1

I

I

I

I

I

I

I

I

I

I
$ 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
UNADJUSTED
TYP:E OF FINANCING
FHA VA '
OTHER

BUILDING
PERMITS
(SEASONALLY
ADJUSTED
ANNUAL
RATE) 2

SEASONALLY ADJUSTED
1
ANNUAL RATE
|TOTAL 1-FAMILY 2 OR MORE

TOTAL

9 - May
June
July
Aug.
Sept.
Octo
Nov. ~
Dec.

1,533.
11,507
11,429
1,376
1,481
1,390
1,280
U 0 2

877
826
803
752
828
766
762
776

656
681
626
624
653
624
518
626

155.5
147.3
125.2
124.9
129.3
123.4
94.6
84.1

21.1
21.5
20.8
22.4
18.3
25.1
18.8
23.2

4.3
4.6
4.7
4.2
4.8
5.0
3.9
4.2

130.1
121.2
99.7
98.3
106.2
93.3
74; 7
57.9

1,323
1,340
1.228
1,245
1,201
1,183
1,191
1,239

D - Jan. •
Feb.
Mar.
Apr.
MayP
JuneP

L,059
1,306
1,392
^,224
1,225
1,358

577
725
708
697
717
818

482
581
684
527
508
540

66.4
74.3
114.7
128.4
123.1
131.6

16.5
17.5
25.2
32.4
37.1
40.7

3.4
3.9
4.8
5.4
5.2
5.0

46.5
52.9
84.7
90.6
80.8
85.9

1,013
1,137
1,099
1,263
1,321
1,302

DATE

l

2

Total starts are Census estimates including farm for both permit-issuing and
noi.-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 no:"ally 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.
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.




,

29

PRIVATE HOUSING STARTS AND PERMITS
Monthly, annual rates

Millions of units

SEASONALLY ADJUSTED

HOUSING STARTS

1.6

i/7\
1.2
BUILDING PERMITS

(in issuing areas)

•CHANGE IN SERIES

PER CENT OF UNADJUSTED TOTAL STARTS

MULTI-FAMILY
(2 or more)

40

GOVERNMENT UNDERWRITTEN
1964




1966

1968

1970

TABLE 16: Mortgage and Bond Yields
|
|
DATE

FHA
MORTGAGES

CONVENTIONAL
MORTGAGES
3

SPREAD BETWEEN YIELDS
ON CONV. &
FHA MORTGAGES

n.a.
5! 44
6.81
6.81
6.29
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

.23
.25
.30
.11
-.12
.12
-.27
.40
.13

9.29
9.20
9.10
9.11
9.16

8.55
8.55
8.55
8.55
8.55
8.55 -

2

.
25-YEAR 30-YEAR

1959-60 - High
1961-66 - Low
1966 - High
1967 - High
- Low
1968 - High
Low
1969 - High
Low

:

1970 - Jan.
Feb.
Mar.
Apr.
May
June
)

2

3

4

6.26
5.43
6.73.
n. a.
n. a.
n. a.
n.a.
n.a.
n.a.
n. a.
n.a.
n.a.
n.a.
n.a.

-.74
-.65
-.55
-.56
-.61

1

NEW
Aaa CORPORATE
BONDS
4

SPREAD BETWEEN
YIELDS ON NEWCORPORATE BONDS
AND
FHA MORTGAGES

5.25
4.41
5.82
6.51
5.18
6.79
6.15
8.75
6.91
8.46
8.30
8.60
8.60
9.10
9.11

1.69
.77
1.16
1.28
.27
1.20
'
.26
1.08

.

.99
.60
.50
.01
.05

.

i
•

Neither mortgage nor bond yields include allowance for servicing costs which -are
much higher for mortgages than for bonds. Generally, bonds pay interest semiannually; mortgages, monthly. Mortgage yields, if computed as equivalent to
a semi-annual interest investment, would be slightly higher than given in the
table.
Based on FHA-field-office opinions about average bid prices in the private
secondary market for new-home mortgages for immediate delivery. 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 peTiocis of adjustment to changes in contractual interest
rates.
Based on FHA-field-office opinion on typical interest rates (rounded) on conventional first mortgages prevailing in the market areas of insuring 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.
See note for Table 1.




j
|

1
^
1
;
i

MORTGAGE AND BOND YIELDS
Monthly

HOME MORTGAGES:
CONVENTIONAL
, FHA

Aaa CORPORATE BONDS:
NEW ISSUES

-

-

Basis Points

Y I E L D S P R E A D ( F H A MORTGAGE VS. NEW ISSUE Aaa CORPORATE BONDS)

200
100

100
1962




1966

1964

v

1968

1970

:

DATE

NEW HOMES
CONFEES &
CHARGES
EFFECTRACT
MATURITY
RATE
(PER
(YEARS)
TIVE
(PER
CENT) RATE
CENT)
2
3

1969
May
June
July
Aug.
Sept.
Oct.
^Nov.
Dec.

T A B L E 17: Conventional Mortgage Terms

LOAN/
PRICE LOAN
RATIO AMT.
(PER ($000)
CENT)
4

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

' LOAN
AMT.
($000)
4

• j7.50
7.62
7.76
7.86
7.89
7.99
7.97
8.07

0.88
0.84
0.92
0.86
0.92
0.89
0.96
1.06

7.65
7.76
7.91
8.00
8.05
8.13
8.13
8.25

25.8
25.6
25.5
25.2
25.3
25.3
25.3
25.4

73.2
73.0
72.0
72.3
72.9
72.8
72.8
71.9

25.0
24.9
24.5
24.3
25.0
24.6
24.6
25.0

8.16
8.23
8^29
8.23
8.28
8.30

1.08
1.09
1.11
1.02
0.98
0.98

8.34
8.41
8.47
8.40
8.45
8.47

25.0
25.2
25.0
24.8
25.3
25.1

69.3
71.8
71.1
71.1
71.7
71.4

25.1
8.13
24.9 x 8.23
25.1
8.26
24.5
8.20
25.3
8.18
25.6
8.18

7.54
7.64
7.79
7.90
7.98
8.00
8.00
8.08

0.83
0.86
0.91
0.93
0.91
0.90
0.90
0.93

7.68
7.79
7.94
8.05
8.13
8.15
8.15
8.24

22.7
22.8
22.8
22.6
22.2
22.6
22.6
22.9

0.94
1.02
0.98
0.90
0.94
0.97

8.29
8.41
8.43
8.35
8.34
8.34

22.4 70.3
22.4 70.2
22.6 '70.4
22.8
70.4
22.8
70.3
23.0
71.6

71.9
71.4
71.7
71.2
70.7
70.4
70.4
70.6

19.7
20.1
20.1
19.8
19.2
19 5
20.1
20.8

i
?

1970

Feb.
Mar.
Apr.
Ma#
June

20.5
20.4
20.6
20.4
21.1
21.6

1

Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance
Corporation. Data are weighted averages based on probability sample survey of characteristics of conventional first mortgages originated by major institutional lender
groups (including mortgage companies) for purchase of single family homes. Data exclude loans for refinancing, reconditioning or modernization; construction loans to
home-builders; and permanent loans which are coupled with construction loans to ownerbuilders. Related series on conventional mortgage rates only, based on unweighted
opinions of field-office directors of the Federal Housing Administration, are available
somewhat sooner than the results of the FHLBB-FDIC survey, and are included-in the case
of new home mortgage rates--in Table 16.

2

Fees and charges--expressed as a percentage of the principal mortgage amount--include
loan commissions, fees, discounts, and other charges which provide added income to the
lender and are paid by the borrower. They exclude any closing costs related solely to
transfer of property ownership.

3

Includes fees & charges amortized over a 10 year period in addition to the contract
interest rate.

4

Derived by FRB.




f
'

CONVENTIONAL MORTGAGE TERMS
Monthly

30
MATURITY
NEW
25

EXISTING
20

1 I I I I II i I M i11 I II I ! I I I ii

15

80

LOAN/PRICE RATIO

NEW

75

EXISTING
70

1 l M I i l I i I I l i i i I i i i ( i i i i I 65
Thousands of dollars

LOAN AMOUNT
30

20
EXISTING

10

1964




1966

1968

i-l I I I I I I I I I I I I I I I I I I I I
1970
' CHANGE IN SERIES